|| Print ||
|Articles - February 2011|
|Thursday, January 27, 2011|
Page 4 of 7
People who get involved in the Oregon Angel Fund tend to get intensely involved. Many describe the group as a family — a large, boisterous family with strong opinions and lively debates, but also a prevailing sense of civility and decorum.
The fund’s investors meet eight or nine times per year and pore over between 80 and 100 business plans annually. They vote on which companies they want to present and organize due diligence teams led by volunteers with relevant expertise to research the selected companies. Then at the next meeting they entertain 12-minute pitches from top executives, followed by a question-and-answer session. The companies are excused from the room and the due diligence teams present their initial findings along with a recommendation to hold off or to intensify research. The group votes on whether to delve deeper.
Once the investors decide they want to learn more, they dig into everything they can find, posting their findings on a shared Angelsoft website. Investors read the reports and express their enthusiasm and concerns at the following meeting before voting thumbs up or down on an investment deal negotiated by the fund managers. “Sometimes it [fails] and there’s a sigh,” says Pozzo. “But when it happens there’s applause and we break open the bottles of wine. Then we call the entrepreneur and tell them, ‘Good job, we got the thumbs up. Now let’s get this deal done.’”
The process does not end once the deal is signed. The investor who leads the due diligence effort usually ends up with a seat on the company’s board. The operating ethic is to mentor rather than meddle; the motto: “nose in, fingers out.” Individual angels move outside the group to add new investments to the pot. And with the entrepreneur’s permission, the group shares its research with other outside investors to bring in new money.
These aren’t just feel-good processes. They’re designed for results. Rob Wiltbank, an associate professor of strategic management at Willamette University who has written several research papers about angel investing, says most individual angel investments fail but a diversified portfolio of angel investments can produce average returns of $2.50 for each dollar invested over five years. The catch is that about 10% of angel investments produce 80% to 90% of the returns. Wiltbank recommends investing in 10-20 companies to improve the odds of success.
Wiltbank says the Oregon Angel Fund's strategy of pooling expertise and refreshing the fund annually addresses the two most important rules of angel investing: to invest widely but also carefully. “I’m very familiar with the Oregon Angel Fund model and I’m a fan of it,” says Wiltbank. “The key is the people and the expertise they have.”
Rich Bader, a board member of the state's Oregon Growth Account, is also a fan. “The processes that the Oregon Angel Fund has put together are very sound,” he says. “We’re pleased with the quality of the investments they’ve made and the level of due diligence.”
Since embracing the investor-driven, participatory model, Rosenfeld says he has no interest in going back. “It’s like a private sector-driven stimulus with state support. It’s not coming from the halls of government. It’s coming from individual businesspeople who could be on their yacht in the Caribbean or in Palm Springs but instead are here in rainy Portland spending their rainy afternoons with us. It’s a statement that people care about Oregon and its economic future.”
Thursday, September 25, 2014
BY JON BELL
Powell's stays relevant in the digital age.
Friday, October 24, 2014
A majority of respondents agreed: Local vineyards should remain Oregon-owned and quality is the most important factor when determining where to eat or buy groceries.
Tuesday, August 26, 2014
BY JENNIFER MARGULIS
In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.
Wednesday, October 22, 2014
BY JASON NORRIS
Historically, when the leaves fall, so do the markets. This year, earnings, Europe, energy and Ebola have in common? Beyond alliteration, they are four factors that the investors are pointing to for this year’s seasonal volatility.
Friday, September 26, 2014
BY JASON NORRIS | GUEST BLOGGER
This post focuses on the recent release of the new Apple iPhone as well as Alibaba's IPO, the largest U.S. IPO in history.
Tuesday, August 26, 2014
BY LINDA BAKER
David Howitt explains why Portland consumer brands like Stumptown and Voodoo Doughnuts are taking the world by storm.
Thursday, September 25, 2014
BY KIM MOORE
University and college tuition fees have been rising for more than a decade, while state funds for higher education have steadily declined.
|The 100 Best Nonprofits to Work for in Oregon 2014|
|A Recipe for Success|
|Uber considers flu shot delivery service|
|P&G plans to exit Duracell|
|Target to offer free holiday shipping|
|Caterpillar gains after raising forecast|
|Dow Chemical profit up 44%|
|Boeing profit jumps 18%|
|Verizon posts higher Q3 revenue|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
Finding a health insurance plan that makes both financial sense for the bottom line and provides choice for plan participants is a huge challenge for employers.
The right financing at the right time is critical for small businesses to succeed.
Among Oregon universities, Oregon Tech is special in the way it incorporates applied research into the curricula of every department.
More than 400 "Change Makers" will gather to invest in a socially sustainable community.