Three emerging Idaho companies - ZoMag, Blue Water Technologies and SunnRooibos - presented their cases to angel investors at the Boise Angel Alliance yesterday. Angel investors are accredited investors; high net worth individuals or trusts as defined by the Securities and Exchange Commission.
The Boise Angel Alliance is an organization of angel investors that gather to review investment opportunities.
Angel investor groups such as the Boise Angel Alliance are an increasing trend throughout the United States. Individual investors within the groups share deal flow due diligence responsibilities. Individual investors make their own individual investment decisions.
According to Steve Simpson, Boise Angel Alliance member and former CEO of Boise-based Extended Systems, "Before the creation of the Boise Angel Alliance, local companies needed more efficient access to early-stage investors. Providing this access via the Boise Angel Alliance is economically vital to Treasure Valley entrepreneurs and ultimately; the local economy." Steve continued, "As an angel investor, involvement in the Boise Angel Alliance provides me with the access to the latest investment deal flow plus the intellectual challenge of working with growing companies; something I really enjoy." Steve added, "Through the selection and mentoring process the other angel members bring a variety of expertise to bear on each investment opportunity."
According to the Angel Capital Association, a professional alliance of angel groups in association with the Kauffman Foundation in Kansas City, Kansas, angel investors gain a variety of professional business expertise from angel investors that lead to improved company success and results. Emerging companies, which succeed, create jobs.
"There are few alternatives nationwide for entrepreneurs and early-stage companies seeking equity investments of $250,000 to $2,000,000," explains Brad Wiskirchen, a former partner with Holland & Hart and Chairperson of the Boise Metro Economic Development Council Venture Capital Committee (BMEDC). "Venture capitalists are an important capital-raising alternative for later-stage companies, but they are not generally in the business of investing in start-ups." Brad added, "The BMEDC has endeavored for many years to efficiently bring emerging companies together with investors--which is why it launched the Intermountain Venture Forum in 1998. The Intermountain Venture Forum has provided local, mature companies with an opportunity to interact with venture capitalists for six years, and it will continue to do so. But the Boise Angel Alliance will now provide start-up and earlier-stage companies with access to much-needed capital, and mentors,aswell."
The difference? Karl Tueller, deputy director of the Idaho Department of Commerce and Labor and the director of the Idaho Office of Science & Technology, explains Boise's Angel Alliance provides start-up and earlier-stage companies with access to capital and mentors.
"Nationwide, active entrepreneur and investor networks are elements in economically prosperous communities," said Tueller.
Kickstand is another local organization for innovators and emerging companies.
"Kickstand welcomes this new source of mentoring and funding for entrepreneurs in the region," said president Jefferson Jewell. "As Boise's entrepreneurial ecosystem expands and develops, Kickstand's membership will continue to grow. This alliance will aggregate considerable knowledge, networks and financial resources of Boise's angel investor community."
ABOUT THE BOISE ANGEL ALLIANCE: The Boise Angel Alliance is an organization of accredited investors with an interest growing businesses in the Boise area. Organization members provide business expertise and access to capital to qualified entrepreneurs and emerging firms. The Boise Angel Alliance is organized and managed by angel investor volunteers. The Boise Metro Economic Development Council and the Idaho Office of Science and Technology sponsor the group's formation and initial events. For more information please visit www.boiseangelalliance.com or call Mary Givens, Acting Executive Director at (208) 334-2470.