Set up and all ready to invest
Carefully selective
By KRIS
HUNDLEY, Times Staff Writer
Published December 25, 2007
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Carl W. Treleaven, CEO of Westlake Ventures, poses at home in |
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What
better day to report on angels?
A network
of wealthy, early-stage investors in South Florida has set up a chapter in the
Investment
candidates have to pass rigorous screening that weeds
out more than 90 percent of applicants. And members have to be serious about
writing checks totaling at least $30,000 a year. Service providers chasing new
business are not welcome.
New World
Angels, a structured investment group in
"Most
angels get the arm put on them by friends or neighbors, then
they drop money without any foresight," said Tom Cardy, membership
chairman of New World Angels'
By
joining an existing organization, area investors hope to avoid many of the
pitfalls of high-risk deals and take advantage of a selection process that has
resulted in five investments over the past two and a half years.
Among New
World Angels' deals are a software company, a biotech business and a Latin
foods wholesaler. None of have yet resulted in a payout.
Cardy,
managing director with Hyde Park Capital Partners in
"With
the demise of the real estate market, high-net-worth people have realized they
need to diversify," said Cardy, a long-time
Members
must be accredited investors for these high-risk deals, with a net worth of
more than $1-million and annual income of more than $200,000. In addition to
committing to a minimum of three, $10,000 investments a year, members pay
$1,000 a year in dues to cover administrative costs. Back-office help is being
provided by Enterprise Development Corp. of South Florida and Florida Venture
Forum in
Proposals
for funding are submitted online at New World Angel's Web site (www.newworldangels.com. The strongest
pitches are heard monthly, then the group decides whether to proceed with due
diligence. A 10-person board makes the final investment decision. The group's
investment ranges from $250,000 to $600,000, but in most cases, that investment
has triggered additional funding from other wealthy individuals or venture funds.
Treleaven
and Cardy expect that will be the case as New World Angels' reputation spreads
throughout the
"People
here have been focused so much on real estate, everything they build has been
around dirt, not intellectual property," Treleaven said. "We're
looking to create new industries, products and services. And once they're
commercialized, affluence is created, talent starts coming in. It
snowballs."
Kris
Hundley can be reached at hundley@sptimes.com or
(727) 892-2996.
Tight
operation
What
-Willingness
to invest a minimum of $30,000 a year.
-Willingness
to share expertise during due diligence of potential investments.
-Contacts
and networks that can yield viable investment candidates.
What
-Companies
that have a specific market niche, have tapped out friends and family, and
preferably have some revenue.
-Companies
in information technology, life sciences, renewable energy and consumer
products, not real estate or traditional energy.
-A
strong, experienced management team.
'Angel' investor?
An angel
investor typically is an affluent individual who provides capital for a
business startup, usually in exchange for an ownership stake. The term
"angel" originally comes from
Source:
Wikipedia