Investment Criteria and Process

Common Wealth Angels invests in people who are fully committed to building great companies based on novel, proprietary technologies that have large commercial market potential.  Ideally, your company will have developed a minimum viable product and conducted sufficient customer discovery to validate that your product or service has a large market opportunity.  Achievement of sales traction and an understanding of the sales cycle necessary to achieve higher levels of sales cost efficiently is a plus.  The outline of investment criteria that follows below is intended to help founders understand some of our investment considerations and the process we follow.           

Founders and Management Team

  • Full-time commitment
  • Domain/industry experience
  • Record of high achievement
  • Coachable

Typical Investment Stage

  • Seed, A Round

Typical Investment Instruments

  • Preferred stock
  • Convertible debt

Investment Range

  • $50,000 to $500,000

Return Expectation

  • Potential for > 5x multiple on investment

Investment Time Horizon

  • 3 – 7 years depending on stage of investment

Previous Investment

  • < $2,000,000 dilutive investment

Proprietary Advantage

  • Unique technology
  • Defensible IP position
  • High barriers to entry and proprietary know-how and solid business model

Scalability

  • Large market opportunity with buying power
  • Potential for leading market share position
  • > $25 million in revenues within 5 years of investment

Other

  • Require board formation and observation rights

Preferred Industries

  • Software
  • Healthcare (IT, medical devices)
  • Agtech
  • Edtech
  • Cleantech

Primary Geographic Ares of Interest

  • Western Virginia primary
  • Rest of Virginia secondary

Process and Investment Decisions

  • Receipt of executive summary starts process
  • Members make individual decisions following presentation and completion of due diligence