According to Garrett Hunter, Cherrystone’s secretary treasurer and president of Business Development Company of Rhode Island, the group plans to invest in at least two companies in 2004 with about $1 million in capital. The group generally expects to invest between $100,000 and $500,000 in each portfolio company. Hunter added that the group has the financial capability to back more than just two outfits should the opportunity present itself.

[Cherrystone is comprised of about 30 individual investors who]...fit Federal Trade Commission guidelines for angel investors in that each has $1 million in assets and $200,000 annual income a year. A married couple must have income of $300,000 and $1 million in assets in order to join.

Cherrystone will be accepting applications from a wide variety of industries, which is a little different from the standard angel group. Usually angel investors get the most out of an investment in the technology sector, a high-risk industry with the potential for a lucrative return on investment.