20090323-A--11-NAT-CCI-CL_-- 3/19/2009 2:47 PM Page 1 MARCH 23-29, 2009 CRAIN’S CLEVELAND BUSINESS 11 INSIDE 13 SMALL BUSINESSES FIND POTENTIAL INVESTORS ARE LOOKING FOR FINANCE EVEN MORE CAPITAL. ANGELINVESTING By JOHN BOOTH
[email protected] hrinking money pies, cloudy crystal balls and equations in which flat equals good. Turns out that the angel investing HITTING Spicture, despite its ties to cutting-edge technologies and emerging companies, has a lot in common with most economic sectors these days. THE BOOKS According to the regionally focused Venture Capital Advisory Task Force, Northeast Ohio saw $259 million invested Angel investors, not in 73 companies in 2008, though that immune to the ongoing figure reflects both angel investors and venture capital contributions. economic turmoil, That total is down from $318 million invested in 71 companies in 2007. On the are doing more bright side, however, the number of pre-investment companies receiving money is the highest since the task force, which is a group of homework to area venture community members, started its tracking four years ago. determine targets’ One sign of the economic times, said long-term financial Clay Rankin, managing member of the North Coast Angel Fund, is that there are viability more group efforts and less individual investments. See HOMEWORK Page 12 But there’s a reason his most Q: What benefits do angel investors between the individuals and the recent book is called “Fool’s Gold?: provide to the economy? groups? THEINTERVIEW The Truth Behind Angel Investing in America.” Dr. Shane said few A: Some angels provide financing A: From a public policy perspective, SCOTT SHANE angels make money on their for high-potential new businesses.