Send Me an Angel

Nontraditional sources of angel financing

Structured Funds:

• Idealflow Angel Fund LLC
  Founded: 2000
  Structure: Fund investing as a single entity
  Investment range: Varies with number of members (each one contributes $1 million per company and can be given permission to invest additional amounts)
  Target companies: Early-stage tech firms
  Geographic preferences: Asia and North America

• Sierra Angels
  Founded: 1997
  Structure: Members investing collectively but able to opt in or out of any investment
  Investment range: $250,000 to $2 million
  Target companies: Start-up or seed-stage tech firms
  Geographic preferences: Nevada and Northern California

HYBRIDS:

• Arizona Angels Investor Network Inc.
  Founded: 1999
  Structure: Network of angels who invest individually
  Investment range: $500,000 to $1.5 million
  Target companies: Early-stage firms in any industry
  Geographic preferences: Arizona

• Gathering of Angels
  Founded: 1996
  Structure: Network of angels who invest individually
  Investment range: $300,000 to $1 million
  Target companies: Predominantly seed-stage tech firms
  Geographic preferences: Atlanta; Hilton Head Island, South Carolina; Houston; Phoenix; Santa Fe, New Mexico

• New Product Development Consortium
  Founded: 1998
  Structure: 130 CEOs of large multinational corporations
  Investment range: Starts at $500,000
  Target companies: Entities in all industries at the pre-seed stage (no company formed yet)
  Geographic preferences: Global

• Silicon Pastures
  Founded: 2000
  Structure: Network of angels who invest individually
  Investment range: $300,000 to $850,000
  Target companies: Pre-seed-stage, early-stage and seed-stage companies and high-growth firms in all industries
  Geographic preferences: Midwest (particularly Illinois, Minnesota and Wisconsin)

What's Brewing

• The Louisiana Business and Technology Center at Louisiana State University has created a venture forum that will meet quarterly beginning in September. Entrepreneurs can present to interested angel investors. For details on the process, call the center at (225) 578-4842.

• The Genesis Group in Rapid City, South Dakota, is currently raising money for the $5 million Genesis Equity Fund and expects to begin making investments in October. The fund will provide start-up and seed financing ranging from $75,000 to $275,000 to firms with the potential to reach annual revenues of at least $1 million. This privately operated fund also has connections to governmental business assistance groups and can direct entrepreneurs to these resources for help creating presentation materials.

• Charleston Angel Partnership is creating a $5 million fund targeting high-growth New Economy firms, particularly those in the health-care, biotech and telecommunications industries. Companies should be just beyond the start-up stage with a management team in place, have a developed business plan and be looking for $300,000 to $500,000. The group meets monthly, and all deals are initially screened by the partnership administrator. For details, contact the group at charlestonangelpartners@hotmail.com.

This article was originally published in the June 2001 print edition of Entrepreneur with the headline: Send Me an Angel.