LEXINGTON, Ky. — The Sheltowee Business Network (SBN) in Louisville began its merger with the Angel Capital Group (ACG), based in Knoxville, in August 2019, and the two business companies have now cemented the partnership to create the Louisville Sheltowee Angel Network.
“What we hear most from entrepreneurs in all Midwest markets is the need for capital remains a number one priority,” said Eric Dobson, the CEO of the Angel Capital Group, now operating under the Sheltowee name. “The Louisville market is no different. We hope to bring together the angel investors here to create a more organized funding approach for better capital deployment and review of business plans.
ACG is a national syndicate of angel groups and funds with chapters across the US. Dobson interfaces with 200 angels across the US and has offered formation support services to more than 8 angel clubs and networks across the Midwest.
The Louisville Sheltowee Angel Network will be designed for accredited investors who are interested in investing in early stage companies that hold the potential to provide strong financial returns and to have a positive societal impact. Using formulas for review designed by ACG, Dobson will begin the process of reviewing metro Louisville-area business plans at the SBN Konexons.com website by the end of the month.
The first meetup of the Louisville Sheltowee Angel Network will only be for accredited investors, and will have a membership fee of $1500, plus a minimum investment expectation of at least $25,000 per year. Investment opportunities will come from all over the Midwest, with an emphasis on Louisville applications for first review. The network looks to bring its first angels together on Feb. 26 at 6 p.m. at Angel’s Envy in an exclusive invite-only affair. Alex Day, a founder of the Sheltowee Angel Network, as well as Dobson expect key players in the market to join for a bourbon tasting and tour compliments of Angel’s Envy, and a full Sheltowee presentation on next steps, together with a toast to our Louisville entrepreneurial ecosystem. Those accredited investors interested should contact Alex Day, at [email protected] or [email protected]. Accredited investors from other markets are welcome.
Special invitations will be sent via email to targeted investors for the first meetup. Entrepreneurs and other mentors will not be invited to this presentation to focus on the angel capital formation required.
First investments are not anticipated until Q2, but applications will be taken beginning on March 1.
“I have the greatest job in the world,” said Dobson. “I get to work directly with successful business people and exciting high tech startup companies. I unite both in order to create incredible companies that will someday be household names and create wealth. It is no secret that angel investors, as an industry, enjoy better than market returns. According to the Kauffman Foundation, the industry average is 2.6x on your money in 3.4 years.”
“We have to take steps forward to unite angel investors in deal flow,” added Day, who is taking a lead role in recruitment for the Sheltowee Angel Network.
Day cited the following reasons for why an accredited investor should be involved with the Louisville Sheltowee Angel Network:
- Diversify your investment portfolio with an opportunity for strong financial returns
- Get exposed to companies that have the opportunity to provide strong financial returns and strong societal impact
- Support the local entrepreneurial ecosystem
- Meet other individuals who are interested in angel investing
Accredited individual investors, as defined by the SEC, have to make at least $200,000 in income for two years, or have at least $1 million in assets (exclusive of their home residence).