We officially launched the Plains Angels on Sunday the 3rd of June. The Des Moines Register pick up on the launch in an article titled: “Group aims to connect angel investors, startups“. The Omaha World Herald ran a story today “Iowa angel group forms with focus on Midwest“. The response has been tremendous. We have had a significant number of people come forward wanting to get involved just in the first 24 hours! For those who are not familiar with the term angel investor, the Angel Capital Association defines them as:
An angel is a high net-worth individual who invests his or her own money in start-up companies in exchange for an equity share of the businesses. ACA recommends that entrepreneurs work with investors who are accredited investors (who meet requirements of the Securities and Exchange Commission) and who can add value to the company via high quality mentoring and advice. Other important things to know about angels include:
- Many angels are former entrepreneurs themselves
- They make investments in order to gain a return on their money, to participate in the entrepreneurial process, and often to give back to their communities by catalyzing economic growth.
- Angels make a return on their investment when the entrepreneur successfully grows the business and exits it, generally through a sale or merger
- It is estimated that angels invested 19 billion in more than 55,000 start-up businesses in 2008 (Source: Center for Venture Research)
- Angels tend to invest in companies that are located near them regionally (or to co-invest in a wider geography if a local investor they know and trust is involved)
We started Plains Angels to address a couple key issues:
- Allow the angels investors in the region to connect with each other and bring their combined skills and knowledge to bear.
- Create a venue for pitching opportunities to investors.
- Increase the available capital for startup and high potential companies.
If you know someone that is interested in the Plains Angels, please have them contact me at firstname.lastname@example.org. Thanks again to everyone for the support! A special thank you to Brown Winick Law and the Greater Des Moines Partnership for their support of the Plains Angels.