TEDA Angels take flight

Investors and entrepreneurs are preparing for a demonstration of working Angel Fund models. In a program that melds established business leaders in a mentoring capacity with start-up companies, the Angel Fund program is designed to enhance overall economic development.

On Dec. 1, the South Coast Angel Fund chapter will demonstrate business plans by founders Clayton White and Choose Taurman. The program, according to Terrebonne Economic Development Authority CEO Steve Vassallo, will provide participants with working examples in the Angel Fund process.

The session will be followed up with a field trip to Loyola University on Dec. 6 to observe an established Angel Fund meeting.

“We are optimistic that once these two sessions are held, we will have sufficient interest in Houma to establish a[n Angel Fund] chapter,” Vassallo said. “One of the significant spin-off benefits from becoming a fund member is getting to know some of the outstanding business professionals in Louisiana. The Angel Fund will pass on any proposal that at least one fund member does not have experience within the respective business sector being presented. In this way, there is firsthand knowledge available as opposed to theory.”

Vassallo said TEDA is promoting the Angel Fund concept as a funding mechanism to assist young companies in need of major capital injections during their early stages of development.

To become an Angel Fund member, individuals must be accredited investors with a net worth of at least $1 million. This is exclusive of a personal residence.

Angel Fund investors typically look for a minimum return on investment of 25 percent annually. They also seek an ideal exit strategy, generally of four to six years, and look for deals that have high income potential as opposed to large investment quantity.

Vassallo said Angel Fund startups have included YAHOO!, Google, CISCO and PayPal.

“The South Coast Angel Fund is now ready to launch new chapters throughout the state and is looking at several municipalities, including Houma,” Vassallo said. “We want to be among the first, if not the first, to come on board.”

The Dec. 1 Angel Fund meeting will be held at the Eagle’s Nest at 6 p.m. Registration must be made for the Dec. 6 field trip through TEDA researcher and grant writer Liza Moltz at lmoltz@tpeda.org or call (985) 873-6890. More information on the South coast Angel Fund can be found at www.southcoastangelfund.com.