Angel Investors & Resources (Part I.)

By: Aaliyah S. Ogletree

This article is very long,but well worth the read. Despite what you may think there are opportunities for entrepreneurs who have  great ideas and vision, but lack financial resources. Your dreams of being your own boss can be achieved regardless of socioeconomic status through hard work, diligence, and belief in one’s ability. I know its challenging and scary, but very exciting and rewarding. To that end, please read below:

Finding the right angel investor could help you get your start-up off the ground. Angel-investor networks are a good place to start looking for funding. These national and local groups of angels meet — formally or informally — to discuss deals and learn about the best new business opportunities. Each network works in a slightly different way: Some may charge fees for making presentations and some may charge a fee to apply for consideration. Some even require an official introduction to the group by an angel member while others solicit ideas via the group’s Web site.

To help get you started in your search for an angel, we’ve compiled a list of U.S. angel networks. Because many angel groups limit their investments to a particular geographical area, we’ve divided the list into eight regions: Pacific Northwest, Southwest, Mid-Atlantic, Northeast, North Central, California, South, and Midwest. There is also a category for those groups that consider investments anywhere in the country.

National Networks

Pacific Northwest

Southwest

Mid-Atlantic

Northeast

North Central

California

South

Midwest

Disclaimer: We strive to update this directory on a regular basis and have tried to ensure that the information contained herein is correct and current. This information is only intended to be a starting point in your search for financing, so please be sure to do your own due diligence before sending your plans, ideas, and/or other personal information to any of the groups listed. Additionally, if you know of a network that should be added to this directory or spot any incorrect information, please email AngelUpdate@inc.com.

NATIONAL NETWORKS

ACE-Net (The Angel Capital Electronic Network)

ACE-Net was developed by the U.S. Small Business Administration‘s Office of Advocacy. Only entrepreneurs who can sell security interest in their companies can enroll. There is an annual fee to enroll — fees vary by state. Maximum fee is $450.

Sweet Spot:
Although companies can raise up to $5 million in financing with ACE-Net, the network may be most helpful to companies seeking up to $1 million.

No-Go:
Certain businesses cannot list on ACE-Net. These include businesses involved in the oil or gas industries, sole proprietorships, general or limited partnerships, joint ventures, and blank-check or development-stage companies.

Average investment range:
$250,000 to $5 million

Number of angels/investors in the network:
359

Contact:
To find your local operator go here

Angels With Attitude

This fund is currently fully invested and not seeking new investments

Angels With Attitude has a committed pool of capital that they call an “active angel fund.” They invest in geographic areas where they have members. That includes primarily the West Coast from Vancouver, BC, to San Diego and the East Coast from Boston to Washington, DC. Angels with Attitude invests in clean and renewable energy and conservation, environmental technology, clean and sustainable transportation, healthy and organic foods and natural products, and education — all things that contribute to sustainability.

Sweet Spot:
Seed and early-stage ventures that are economically, environmentally and socially sustainable.

No-Go:
Don’t send a complete business plan to them as your first step. Instead, E-mail an Executive Summary to the E-mail address below, and you will be notified if they want to take a look at your complete plan.

Average investment range:
$75,000 to $250,000

Number of angels/investors in the network:
25

Contact:
Angels With Attitude
Kristin Martinez
6541 36th Ave. SW
Seattle, WA 98126
206-932-3850
kristin@soundpointventures.com

Investors’ Circle

Nonprofit national network of angel investors, foundation officers and entrepreneurs. Business that are reviewed by Investors’ Circle members must fall into at least one of the following interest areas: community development, education, environment and energy, health, and women or minority-led business.

Sweet Spot:
Socially responsible deals.

Average investment range:
$10,000 to $6.5 million

Number of angels/investors in the network:
110+

Contact:
Investors’ Circle
320 Washington St.
Brookline, MA 02445
617-566-2600
inbox@investorscircle.net

The Tribe of Angels

A group of Jewish industry leaders who invest in companies primarily in the United States and Israel. Operates as a business network and angel group. A select number of start-ups are selected for presentation to investors, and deals that do not qualify for presentation may still be eligible to network with investors and other businesspeople in the group. Currently has operations in Boston, California, Chicago, Connecticut, New York, and Israel.

Sweet Spot:
High tech and biotechnology.

Average investment range:
$50,000 to $1 million

Number of angels/investors in the network:
300+

Contact:
Paul Allen
San Francisco, CA
paul@tribeofangels.com
415-710-0801

Gathering of Angels

Established in October 1996. A monthly meeting of private, high-net-worth investors that provide seed-level financing to start-up and early-stage firms. Since October 1996, the group has helped 87 companies find capital, including 14 in 2003 and 11 year-to-date in 2004.

Sweet Spot:
Invests in companies nationwide. Currently has investor groups based in Atlanta, Dallas, Hilton Head, Houston, Pebble Beach, San Francisco, Santa Fe, Scottsdale, and St. Louis. A group will launch in Naples, FL in October 2004 and another in Maui in November 2004.

Average investment range:
$200,000 to $1.5 million

Number of angels/investors in the network:
350

Contact:
Tarby Bryant
#4 Hawthorne Circle
Santa Fe, NM 87506
505-982-3050
tbryant@nm.net

PACIFIC NORTHWEST

Portland Area Angel Network

PAN will consider hearing presentations from companies based in Oregon and Clark County, Washington. The group meets quarterly to hear presentations from 3 to 4 selected companies. Companies wishing to be considered must go through the screening process. PAN is affiliated with the Oregon Entrepreneurs Forum, a nonprofit organization providing educational and networking opportunities to entrepreneurs, service providers, and investors.

Sweet Spot:
Companies in high-growth industries, with a clear exit strategy.

Average investment range:
$500,000 to $2,000,000

Number of angels/investors in the network:
100

Contact:
Portland Angel Network
c/o Oregon Entrepreneurs Forum
222 NW 5th Suite 308
Portland, OR 97209
503-222-2270
PAN@oef.org

Alliance of Angels

Founded in 1997, the Alliance of Angels uses an online, members-only site to view business plans submitted by new technology companies. Selected companies have the opportunity to present their business plan to Alliance of Angels investor members at a monthly meeting. Companies must be headquartered in the Pacific Northwest, which includes Alaska, Idaho, Montana, Oregon, Washington, and lower British Columbia. There is no cost for the submission or screening of business plans.

Please stay tuned for Part II.

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