The Best Angel Investors in Boston
The best angel investors in Boston include groups like Beacon Angels, Boston Harbor Angels, Hub Angels Investment Group, and Launchpad Venture Group, all of which actively fund early-stage startups across the city and greater New England.
Boston is the state capital of Massachusetts. It's located in the New England area and it's one of the cultural hotspots within the region. Additionally, Boston is home to the largest economy in the New England area. This makes Boston one of the best places to create a startup in the Northeastern part of the United States.
In Boston, connecting with investors is hard. There are thousands of angel investors and hundreds of startup companies making pitches. To separate yourself from other startup founders, it's important to reach out to the most prolific angel investors. Doing so will help you save time and prevent you from wasting time on the wrong angel investors.
Unfortunately, it's hard to separate good angel investors from the best angel investors. This is where we come in. After researching the best angel investors in Boston we've compiled a list of the top 5 Boston angel investors. Read on to learn more below.
What is an Angel Investor?
An angel investor is someone who invests their money into startup companies for shares, equity, or convertible debt. Depending on the company and the investor, the type of deal that's made varies. Most angel investors prefer to invest in startups that are in their early funding rounds. So, it's not uncommon to see angel investors invest during the pre-seed and seed rounds of funding.
Angel investors are also unique when compared to venture capitalists. Venture capitalists are attached to firms, so there's less wiggle room and deals take longer to make. However, venture capitalists invest more capital because they're large firms. AngelMatch's directory of individual angel investors is a good place to see the difference for yourself.
How Much Do Boston Angel Investors Invest in Startups?
On average, Boston angel investors invest between $25,000 and $250,000 into startups. Ultimately, the amount depends on the industry and the investor. Some industries, like technology, get larger amounts of money because of the potential growth. Additionally, some angel investors have more capital to invest than others.
What are the Famous Startups from Boston?
Several famous startups got their start in Boston. However, startups often move or change states, so some of these startups might not be located in Boston anymore.
These famous Boston startups are listed below.
- SmarterTravel
- Corvus Insurance
- Hourwork
- Finch
- LinkSquares
- Algorand
- Logz
- Perch
- Fetchnotes
- Care.com
- FlightCar
- FormLabs
- Rethink Robotics
- CustomMade
- Starry
- Embedly
These are only some of the famous startups in Boston. There are hundreds of additional startups in Boston.
How Do You Connect with Investors in Boston?
The best way to connect with investors in Boston is to use an investor database. Investor databases like AngelMatch give you access to thousands of angel investors and venture capitalists. AngelMatch also allows you to filter by your state, city, and industry for the most accurate search results, including a dedicated list of Boston-based investors and Massachusetts investors.
The 5 Best Angel Investors in Boston
You'll find 100s of angel investors in Boston. Unfortunately, not all angel investors are worth your time. This is because some angel investors won't hear your pitch or invest a substantial amount of capital. To help you with your search, we've narrowed down your options to the five best angel investors in Boston.
We list the top 5 angel investors in Boston below.
- Beacon Angels
- Boston Harbor Angels
- Converge Venture Partners
- Hub Angel Investment Group
- Launchpad
1. Beacon Angels
Beacon Angels is one of the longest-lasting angel groups in Boston. It was founded in 2006 and continues to grow in size and capital. Throughout the group's existence angels have made several investments. In total, the group has invested in 7 companies. These companies include GateRocket, Crimson Hexagon, and even Pixability.
Beacon Angels is also one of the most active angel investor groups in Boston. The group meets on the second Tuesday of each month, at its Woburn, Massachusetts headquarters and online, where decisions about investments are made. The group is also easy to join and provides educational resources for members of the group and startup founders. It's also worth noting that the Beacon Angels are easy to get in touch with, though they only review referred plans.
When it comes to money, the group invests between $50,000 and $400,000 into early-stage startups. Funding typically comes during the pre-seed and seed rounds of funding. However, the group entered into deals well into the Series A round of funding.
2. Boston Harbor Angels
The Boston Harbor Angels is another group of angel investors in Boston. Founded in 2004, the Boston Harbor Angels invest in early-stage startups to help them grow. Investments typically come during the seed round or pre-seed round of funding. Keep in mind that some Series A funding round investments are made; this is true of most large angel groups.
All that said, the Boston Harbor Angels are a special group of angel investors. This is because the group is dedicated to helping entrepreneurs in more than one way. Instead of focusing on investments, which the group will do, the Boston Harbor Angels also focus on education. Therefore, startup founders have the opportunity to learn about what it takes to be successful with professional mentorship.
The Boston Harbor Angels typically focus on companies raising between $250,000 and $1.5 million, and they'll fund a portion of the round and syndicate the rest with other angel groups or early-stage venture funds. Their portfolio spans information technology, life sciences, consumer products, business products, and more.
3. Converge Venture Partners
Converge Venture Partners, formerly known as Common Angels, has grown from an angel network into an early-stage venture capital firm co-founded by Maia Heymann and Nilanjana Bhowmik, joined by General Partner Anshu Agarwal. The firm focuses exclusively on B2B technology companies, with a portfolio spanning SaaS, AI, fintech, and data analytics.
Converge leads rounds and writes checks across seed and Series A stages, and the firm has led or participated in more than 100 investments over its history, including well-known names like Chainalysis, Harmonix, and InsightSquared.
Because Converge is now structured as a venture firm rather than a pure angel group, expect a more formal process than you'll find with Beacon Angels or Boston Harbor Angels. Still, its roots and continued focus on early-stage Boston founders keep it on most local investor lists.
4. Hub Angels Investment Group
The Hub Angels Investment Group is one of the most prolific angel investor groups in the city. It's been around since the year 2000 and continues to expand its membership size and portfolio size. The Hub Angels Investment Group is known for investing in industries like mobile/media, online services, software, science, and hardware.
Over the course of the group's lifespan members have invested a lot of capital. The Hub Angels Investment Group has a portfolio that includes over 50 companies across six funds. Past and current portfolio companies include Zipcar, Copiun, and DraftKings.
Hub primarily backs seed-stage companies, syndicating alongside firms like Techstars and Launchpad Venture Group. Throughout its existence, the group has seen over a dozen successful exits in the tech and life sciences industries.
5. Launchpad
Launchpad is one of New England's largest angel investor groups. The group has more than 175 members and it has been around since 2001. Since 2001, Launchpad members have invested more than $125 million into startups. Plus, this money was distributed amongst more than 150 companies. So, Launchpad makes many investments and makes them often.
Launchpad is also open about how its members conduct investments. For example, the group invests between $8 million and $10 million per year across 30 to 40 rounds of funding, and members build individual portfolios rather than investing through a pooled fund. Founders can start through Launchpad's Catalyst networking events before moving to a formal pitch.
Still, what makes this group better than many others is the investment in human capital. This means that angels from Launchpad will mentor startup founders or provide companies with suitable employees to get the job done right. This makes Launchpad one of the best angel investor groups in Boston.
Boston Angel Investor FAQs
How many angel investors are based in Boston?
AngelMatch's database currently tracks 2,000+ investors located in Boston, spanning individual angels, angel groups, and venture firms. You can filter the full Boston investor list by market and stage to find the best fit for your startup.
Do Boston angel groups only invest in Boston-based startups?
No. Groups like Launchpad Venture Group and Boston Harbor Angels invest across New England, not just within city limits, so founders based elsewhere in Massachusetts or nearby states are still fair game.
Do I need a referral to pitch these groups?
It depends on the group. Beacon Angels only reviews referred plans, while Launchpad runs open Catalyst networking events that any founder can apply to before moving toward a formal pitch.
What's the difference between an angel group and a venture capital firm like Converge?
Angel groups are networks of individual accredited investors who each decide whether to fund a deal. Venture capital firms, like Converge Venture Partners today, pool committed capital into a fund and make investment decisions as a firm.
Connect with Investors Today
We've taken you through 5 of the best angel investors in Boston. That said, connecting with them isn't always easy. This is where AngelMatch comes into play. AngelMatch provides you investors with their contact information, so you can build your lead list of investors in minutes and start reaching out. Browse the full AngelMatch investor database to keep building your list beyond the five groups above.
