CommonAngels is composed of 70 private investors and several dozen limited partners in two co-investment funds. This group is fairly unique in that they have a small permanent staff of three people who manage the group, taking care of the putting the breakfasts together, managing the deal-flow, due diligence, board memberships, and so on.
This group is self selected. To join, you need to fulfill certain criteria and go through an approval process. Since its inception in 1998, CommonAngels has funded 33 companies with over $37 million from CommonAngels and over $100 million from co-investors. Rounds are typically in the half to one million dollar range, but can go higher.
They take a very hands on approach to the funding process, and will only fund companies in their areas of expertise. Entrepreneurs present their plans at these breakfasts where the group asks questions and critique the plan.
If a company was funded by CommonAngels and needs bridge or continuation funding, they can present again and the board member will take part in the presentation. If there is interest in funding the company, the group puts together a due diligence committee to dig deeper into the company and the plan. If the company is funded, the group is present on the board.
What is interesting here is that this group is very hands on and involves itself very intimately in the company and its development, rather than just “throwing money over the wall.”