Soundings (5/5/09)

Posted by Stowe Talbot 
 
 

Flag Salute and Invocation by Bill Unrein

Visiting Rotarians: Bill MacCormack

Guests: Shelly Martin (Zazen Slaon), Laura Diesen (Brad Cornwell's neighbor), Pat Rowe, Jim Alsop, Debbie Kiene (Horizon Bank).

Announcements:

Golf NEXT WEEK AT PADDEN!  Lunch at noon, golf at 12:30.

Board meeting Thursday May 14th.

Bucks in Bay

  • Steve Beringer missed meetings in Hawaii for dad's birthday;
  • Anna for Foundation $100 birthday next week;
  • Tonja Myers 10th anniversary, daughter graduate HS, son Ian cut his ponytail;
  • Phil X this Thursday his foster grandchildren become his OFFICIAL grandchildren!
  • Zachary Jones birthday, anniversary and trip to Dom. Republic;
  • Bob Jones 34 years anniversary;
  • Ron Hardesty 6 days in Texas, saw Willy Nelson in concert there TWICE, bought Stetson hat and pair of boots.  And a new granddaughter named Zara Raven!
  • John Stewart $20 for Hoizon Bank alive and kicking, and daughter now in England with Stephainie S;
  • Patti Imhof went to LA & Portland;
  • Eddie Hanson thanks Lesa for helping organize golf game next week, took son Lucas fishing at What Fall Park last week.
 

Sargeant at Arms by Barry Kramer
Fines for Bill Unrein for missing SAA last week, swine flu, Patti Imhof award, Gary Barnett's birthday, Tresha Dutton and Christine Palmerton, Scot for his twin bro, Lesa Boxx and Kathy Cheldelin for new cars, Donna Edquist, Bryant Engebretson was on the radio yesterday, and bankers for the disappearance of "private banking".

Program
Tonja Myers introduced Bruce MacCormack of Cascadia Consulting.  Bruce is retired from IBM, serves on the Bellingham Public Development Council, and is founder and chairman of the Bellingham Angels Group (BAG): www.bellinghamangels.com. 

About angel investing: Wealthy individuals, 400,000 individual active angels, "been there done that" entrepreneurs, generally $25K - $250K per deal per angel.  Our group is organized through the "Angel Capital Organization". Ours formed in 2005 as an LLC membership by invitation only capped at 50 people, meet about 6 times per year.  They do educational workshops and semiars, too.  They receive support from several corporate sponsors.

Process:  Company applies online, the screening committee discusses the proposal, a brief 10-minute meeting, and the application is evaluated.  Screening help by WWU biz school students (internships).  Also BAG sometimes facilitates co-investment with other angel groups for "the very best" projects that need more money to get fully funded. 

Typical finacing options (from small to large):
-family friends;
-angel investers;
-venture capital;
-commericail banks, instutional investing and IPO's.

Funding gap occurs at the $3-5 million range. Angel groups annually invest $20 billion (same as VC's!).   Usually, financing is either by VC or angels, but not both - there are not compatable.  Last year BAG gave $2.2 million divided among 11 companies. 

Start-ups create jobs and fuel the economy.  Entrepreneurs will be the foundation of the economic recovery. 

Industries that they target: Healthcare, technology, social networking, companies that grow quickly and create a strong management team. 

Why so few technology start-ups in Bellingham/Whatcom County?  Probably because Bellingham has a blue collar past and is still (slowly) transitioning to a more technology-based economy.  Big hope for the effect of the new Waterfront Re-development project. 

How do you collaterize the money?  Mostly with equity but sometimes with debt.

Respectfully submitted,
Stowe Talbot