Many entrepreneurs who sell their businesses struggle with what to do next. There may have been very good reasons for exiting their business, for example: they seek to retire and want liquidity in order to diversify their wealth; they lack the skill or energy to take the business to the logical next level; after years of being in the business they are simply burned out on the industry or business; etc. However, some, who enjoy problem solving and delivering products and services of value to society, may find a life of golf, leisure, and nonprofit work an unexciting option. They also aren’t crazy about the time and energy commitment required for starting and running a new enterprise, and don’t want to work for someone else.
Here’s an interesting option: become an Angel Investor, providing capital and expertise to start-up businesses. Of course, there are some obstacles that may be daunting: 1, how to gain exposure to a wide variety of start-ups so that you can make the best possible choice; 2, the risk – if you drop $50k into a start-up and it fails, there is a high probability of losing your investment; and 3, while you may have a strong track record of running a business are you confident of your ability to understand the risk factors and markets for the businesses in which you invest – in other words are you confident you will always even know the right questions to ask?
Let me offer a solution: Oregon Angel Fund (OAF). Oregon Angel Fund is a highly structured, professionally managed, investor-driven angel fund. The fund provides accredited investors privileged access to the most promising startups and early-stage growth companies in Oregon and SW Washington.
OAF launches a new $3M+ fund each spring. Each annual fund aims to place 4-5 investments over a 12-month active investing period, followed by another 10 years of fund life to grow and exit each portfolio. The fund typically invests $400k-$600k per deal with individual OAF members and venture capitalists investing alongside and after OAF.
Since OAF is well-known in the start-up community there is a steady flow of potential deals to be evaluated. The participants in OAF are required to invest a minimum of $25k, but their money is pooled with others and invested in 4-5 businesses, so the investor gains more diversification than if they were investing individually in just one company. Members of OAF are actively involved with due diligence on companies, so the investor benefits from the knowledge, experience, and insights of the group, rather than on one individual’s judgement.
For more information on OAF please view its website: www.OregonAngelFund.com
