CommonAngels on Path to Land $20M Fund

Lexington, Mass.-based CommonAngels is hoping to raise a $20 million microcap fund.

The firm closed on $10 million of the total last year, according to a Dec. 20 filing with the Securities and Exchange Commission. It is actively seeking the remainder, according to one source with knowledge of the plans.

The focus of the fund wasn’t immediately clear. The CommonAngels website points out that the firm invests in early stage information tech companies both as angels and through its microcap venture fund. The microcap fund makes seed stage investments and adds to the angel money going into early stage deals.

The firm has invested in more than 40 companies in New England, New York City and eastern Canada. Software, Internet, digital media and mobile deals are typically the focus.

The firm said in its December filing that it expects to raise more than the $10 million it has so far attracted. One source said it is reaching out to new investors. CommonAngels Managing Director Chris Sheehan declined to comment.

The firm first made its fundraising intentions known in a July 2010 filing.

Last month, the group invested in InsightSquared, a company building data intelligence solutions for small and medium sized business. The startup raised $1 million in seed capital from individual investors and CommonAngels, Atlas Venture, NextView Ventures, GrandBanks Capital, Freshbooks founder Michael McDerment and HubSpot founder Dharmesh Shah. The company shares an address with Bessemer Venture Partners.