Funding Criteria

The Hub Angel Group invests across industry sectors as part of its diversification strategy, with a focus on health care/life sciences, IT/communications, and financial services.

The current Hub Fund III invests in seed and early stage companies in the New England States, and principally in the Boston area. The Fund has a preference for investing in Series A rounds, but will consider other investment vehicles. The Fund will typically invest $250,000 as a base investment, with co-investment rights of its Members typically providing at least an additional $250,000. A Fund reserve of 50% is used for follow-on investments in our portfolio companies.

Investments will be largely focused on disruptive technologies, but otherwise will not be limited by industry sector. The Fund will consider companies in the $1,000,000 to $10,000,000 pre-money valuation range. The Fund will typically place a Member on the Board of Directors of portfolio companies to monitor and mentor the portfolio company, as well as communicate to the Fund, and seek support from the Member's respective and collective networks. We are active investors, and seek to help our portfolio companies in every aspect of running and growing their business.

Sector: Early stage companies with unique and protected technology, and a significant market opportunity in healthcare/life sciences, IT/Internet/communications and financial services

Stage: 12+ month-old companies with core management team, beta sites, or initial product sales, and capital requirements less than $10 million.

Location: Preference for Greater Boston, but also the New England states.

Investment: $250k - $750k purchase of preferred equity, less than $10 million pre-money valuation, board representation, active investors.

Investment Process

Hub sources opportunities through our extensive and collective networks – we do not accept unsolicited proposals.

Companies fitting the Hub profile are invited to submit a summary following the Hub "template" - a 3-page summary of the basics. During screening sessions, the Management Group and its Advisors use these summaries to determine the companies that best match the group's investment interests.

The Hub membership meets every 8 weeks and listens to 15-minute presentations by three companies, followed by Q&A, and a voting process which determines if the group will enter formal due diligence. Our due diligence effort is very thorough, and typically results in an investment decision within 60-90 days from the presentation date.

Regardless of funding, the Hub Angels endeavor to help start-up companies with promise.