For more information on financing or membership, go to www.hiangels.com. BY BOBBY COMMAND ADVERTISING WEST HAWAII TODAY bcommand@westhawaiitoday.com Local investors have formed a group that will specialize in financing startup companies. The Hawaii Island Chapter of University of Hawaii Angels
BY BOBBY COMMAND
WEST HAWAII TODAY
bcommand@westhawaiitoday.com
Local investors have formed a group that will specialize in financing startup companies.
The Hawaii Island Chapter of University of Hawaii Angels will launch its organization July 20, according to Dr. Drew Ross, a Kainaliu-based organizer of the new group.
“Part of the idea is that this group can serve as a flash point for the development of more high tech industry on the Big Island,” said Ross, a psychiatrist. “We see high tech as green and aina friendly. We see lots of ideas here and we want to pull everyone together to secure our spot in high technology.”
Angel investors are normally affluent groups of individuals who provides capital for a business start-up, usually in exchange for ownership equity or, in Hawaii’s case, a share of state tax credits for high-tech investments. This method of financing usually fills a gap in start-up financing between about $250,000 to $1 million, when venture capital funds usually become available.
Founded in Honolulu in 2002, UH Angels is an organization composed of high-net-worth individuals from a variety of professions.
The network is led by Rob Robinson, a former Harvard business professor and the executive director of the University of Hawaii’s Pacific Asian Center for Entrepreneurship and E-Business. Also part of the network is Byron McCann, an experienced entrepreneur, angel investor and venture capitalist, and Nick Riznyk, a Big Island resident who has a sales and marketing background in the high tech industry.
The all-volunteer angels help to review the prospective ventures, coach the entrepreneur presenters and conduct the follow-up investigation of the companies.
Members must be “accredited investors,” usually defined as having a net worth of at least $1 million or having earned at least $200,000 in the last two consecutive years.
To date, UH Angels has invested $9.25 million in 25 companies, many of which are Qualified High-Tech Businesses (QHTB’S) under Acts 221 and 215, which involve state tax credits for specific types of investment.
The new Hawaii Island chapter is the second expansion of the organization into the neighbor islands, following the recent successful launch of a chapter in Maui.
Ross said the new group can serve as a gathering spot for many accredited investors who share an interest in helping the island while developing new high technology. He said potential investments involve high risk and potentially high reward.
“Many people have been asking for this group,” said Ross, “both people with past experience with high technology on the mainland, and long-term residents, many of whom are not very familiar with the tax credits under Acts 221 and 215.”
Ross added that there has been an influx to the island of many new accredited investors who want to help the island and to meet local residents.
For more information on financing or membership, go to www.hiangels.com.
