In 1998, a group of Atlanta-based angel investors who were currently investing in early stage technology companies on an individual basis decided that Atlanta needed an organized group of investors to help fund these companies as well as mentor the entrepreneurs within those companies.
Here was the thought process:
- The power of collaboration is more powerful than that of individual decision making. Therefore a group of investors could be more successful than separate individuals in due diligence, sharing deal flow and mentoring new entrepreneurs. No one person or group would control the actions of the group.
- Atlanta needed an organized group of accredited angel investors to aggregate their funds in order to make larger investments.
- Current Atlanta based angel investors needed to band together to help protect these investments as well as prioritize their deal flow and share due diligence duties.
- Atlanta needed an organized group of accredited angel investors to learn from each other.
- Atlanta needed to encourage this type of investment from those within the community who had been successful.
- The angel investors decided early that the group would be entirely “investor supported” and that no “corporate sponsors” would be allowed. The investors within the group would fund the group and would answer to themselves only.
- The angel group encouraged a minimum investment on an annual basis to ensure that investments were made and that the group maintained credibility within the community.
Here is what the group also hoped to accomplish:
- To create wealth and a positive return for the angel’s personal investment–a basic expectation of investing.
- To create wealth, business success and business experience for local Georgia-based entrepreneurs.
- In accomplishing #1 and #2 above, to create of cycle of investments and subsequent exits that would establish a self replenishing investment and entrepreneurial source for Georgia in perpetuity.
- To attract additional “outside” institutional capital to the state of Georgia
- To give back to the community, both in capital and mentoring, that which the angels had received.
- For the members to stay involved in the technology community.
It’s really just that simple.
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