PROVIDENCE – The Brown Angel Group has rolled out a new investment option that reduces the commitment and capital investment from members.
As reported by Rhode Island Inno, the 1-year-old angel investor group started by Brown University graduates to support early-stage startups founded by Brown University alumni recently announced a rolling fund option known as 401 Ventures for its members. Unlike the special-purpose vehicles the group used to fund its initial $500,000 investment, in which members pledged capital based on the individual deals, the new rolling fund pools capital contributions from members with investment decisions made only after the capital is raised.
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The structure reduces the monetary and time commitment from members and strengthens the portfolio by relying on a diversity of companies. Initial investors will be asked to contribute $10,000 quarterly for a minimum of three quarters.
Group leaders told Rhode Island Inno they are aiming to raise $100,000 per quarter through the new rolling fund and anticipate some deals will be made through the new fund, as well as special-purpose vehicles.
The group also disclosed the recipients of its initial $500,000 funding made earlier this year. An indoor farming robot company known as Root AI will receive $325,000; an alcoholic kombucha company called Jiant will receive $130,000; and an online mental health prescription renewal company called Minded will receive $110,000.
The group currently has more than 600 members.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
