Pages

    Archives

    29 Jul

    Raising angel capital for a growth company in the boondocks. Best answer on the web

    Author: admin  //  Category: xn--g7qx97f.com
  • I know a number of entrepreneurs who live in places like my home town -- Bozeman, Montana -- who have companies that are beginning to grow rapidly and are starting to need growth capital beyond their limited personal resources. On the one hand, there aren't much in the way of tangible assets in the business, so bank loans are out of the question. On the other hand, the businesses haven't yet reached the stage where approaching a venture capitalist is really feasible. "Angel" investors are the obvious stop-gap, but it's tough to connect with them in a timely way. Sure, there are the typical "brown bags" and online business plan submission routes, but those don't seem to deliver much in the way of results.
    What strategies are working for promising businesses seeking angel funding and which are located in out of the mainstream places?


  • Hello Dave:

    I am not sure if you are a tech company or not, but the following website helps put companies an VC together and it is right in your hometown, Bozeman.
    http://www.techranch.org/index.html

    “TechRanch works with start-up technology ventures that develop software, bio-tech, Internet and other technology. Our mission is to provide the best environment for the rapid and successful development of technology based companies. “
    “TechRanch sees many exciting applications and would like to extend its services to all Montana businesses, however we must stick to the admission criteria to fulfill our charter. We are a not-for-profit, 501(c)4 tax exempt corporation, contributions or gifts are not deductible as charitable contributions for Federal income tax purposes.”
    Have you tried the Eastern Montana Angel Investor Network?

    http://www.localfund.com/company/news/january_29_2002.htm

    “Through the Eastern Montana Angel Investor Network, business plan summaries may be presented online to accredited investors, as defined by the Securities and Exchange Commission. Investors may then contact the entrepreneurs directly and arrange for a face-to-face meeting. “


    Entrepreneur Magazine offers a service where you can search for wealthy investors by zip code or state. Unfortunately they charge you per record returned. But you can try for free to see who in your area has appropriate net worth.

    “AngelSearchTM combs government records to gather investment data, industry preferences and total stock positions of America's wealthiest individuals, giving you unlimited access to valuable contact information on potential angel investors, customers and clients. It's an invaluable tool if you're trying to raise capital or find investors or wealthy new customers in your area.”

    http://www.entrepreneur.com/Tools/TL_Information/0,4679,299461,00.html
    Have you thought about Direct Public Offerings?

    “Appropriate for: Direct public offerings work better with established companies, but they can also be used for start-up and emerging companies. One of the most important characteristics a company should possess for a successful direct public offering is a strong affinity for its customers, the surrounding community or the industry in which it does business. In a direct public offering, these affinity groups become the company's shareholders. “
    From:
    http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,300884,00.html
    Some people get financing from their suppliers like in this case:

    http://www.inc.com/articles/finance/fin_manage/fin_plan/24242.html

    “Financing also can come from deep-pocket corporations. Alisa Nessler got $12 million in venture capital last December for her two-year-old Austin, Texas, company, Lane 15 Software. Three of the eight investors weren't venture-capital firms, however; they were investing arms of Dell Computer Corp., Intel Corp. and Quanta Computer Inc., a Taiwanese computer maker.”
    Also from inc.com: http://www.inc.com/magazine/20020401/24052-2.html

    Preferred-membership-interest investment is another avenue:

    “In 1999, when Reddoch and a group of local angel investors were trying to raise the $600,000 they needed to purchase Container Technologies from its former owners, they approached SJF and asked for help in reaching their goal. SJF, which has offices in Durham, N.C., and Philadelphia, made a $266,500 preferred-membership-interest investment in Container Technologies in exchange for a 15% nongoverning stake in the company. ("Preferred-membership interest" indicates that SJF, as the biggest cash investor, receives the first income and potential capital-appreciation returns that Container Technologies sees. "Nongoverning" indicates that SJF has a nonvoting interest in the company.)”
    http://www.inc.com/articles/finance/capital/angel/23478.html

    To get angel money, start to think like an angel investor, and then present your company along those lines.
    “So how do you go about getting financing from the newly sobered group of angel investors? You need to think like an angel yourself. Approach angels with a full understanding of what they like and don't like, what they need and don't need, and how they make and sometimes lose money.”
    From:
    http://www.inc.com/articles/finance/capital/angel/23478.html

    Other links of interest:

    The Montana SBA
    http://www.sba.gov/mt/mtopportunities.html

    http://www.library.cornell.edu/jgsm/library/faq/ent_vc.htm

    http://www.eastsidejournal.com/sited/story/html/86811

    I hope this helps you think “out side the box” for acquiring VC. Please ask for a clarification if needed, I’ll be glad to help.

    Regards,

    Colin




    Google search terms
    angel investors
    angel investors montana


  • To be fair, the answer reflected a good, but basic search of standard Web resources. For $20, it is a good value. I learned what I wanted to learn about the utility of the service.









    • #If you have any other info about this subject , Please add it free.#
    Your name:
    E-mail:
    Telphone:

    Your comments:


    If you have any other info about Raising angel capital for a growth company in the boondocks. , Please add it free.
     //  Add Comment