Summer 2009
Alliance of Angels Launches Seed Fund to Supercharge Early Stage Investment
Building on its well-earned reputation as one of the most active angel groups in the nation, Alliance of Angels announced this spring the launch of its new AoA Seed Fund. The Fund will capitalize on AoA's screening process and network of savvy investors to have an even greater impact in supporting the growth of innovative, young companies in the region.
The Fund made its first investment in June, directing $235,000 to online project management software developer LiquidPlanner. The investment was in addition to a combined $385,000 the company received from individual AoA members in recent months.
Think of it as angel investing, supercharged.
"Having made a total of 80 investments in just the past two years, AoA continues to actively invest in great local companies and now will be able to put even more money to work," said AoA chair Dan Rosen, CEO of Dan Rosen & Associates.
"With this additional vehicle available to benefit both investors and entrepreneurs, AoA is poised to take angel investing in the Pacific Northwest to a new level."
AoA examined existing sidecar and seed funds operated by groups in other states before deciding on the structure of the Fund. To be considered for Fund investment, companies must progress through the AoA screening process, present to the membership, and secure investment totaling at least $100,000 from two or more AoA members, including an identified lead investor.
A volunteer committee of experienced investors - Peter van Oppen of Trilogy Partnership, Tim Porter of Madrona Venture Group, and angel investor Gaylord Kellogg - reviews eligible companies to ensure proper due diligence and diversification when making investment decisions on behalf of the Fund.
The first company to receive Seed Fund investment, LiquidPlanner, was founded in 2006 by former Expedia.com senior managers Charles Seybold and Jason Carlson. The Bellevue-based company counts Philips, AOL, and Coldwell Banker Bain among its customers. More than 100 companies and organizations adopted LiquidPlanner's project management solution in the first quarter of this year alone.
The AoA member and Seed Fund investments were part of a total $1 million in new financing announced by the company.
"My original decision to invest in LiquidPlanner was driven by two factors: the impressive management team led by Charles and Jason, and a truly innovative product that takes a completely new approach to project management software," said Alliance of Angels member Geoff Entress, who recently joined the company's board of directors.
"I'm sure this combination of innovative offering and quality leadership, plus the great customer traction the company has been able to achieve in such a short time, is the reason so many AoA members and the Seed Fund were enthusiastic about this deal."
To date, the AoA Seed Fund has raised $4.4 million to invest alongside individual angels in qualifying companies. The Fund is expected to make between seven and 10 investments per year over the next three to four years.
"AoA has always offered quality opportunities for investors to engage with innovative, high-growth companies in our region," noted Greg Huey, AoA program director. "I am confident that, making use of AoA's proven screening process and sophisticated membership, it will have a lasting, positive impact on the entrepreneurial ecosystem of our region."
Emer Dooley, Lecturer in Entrepreneurship at the University of Washington's Foster School of Business, serves as the Seed Fund's executive director. Legal, tax and accounting, and insurance services for the Fund are provided by AoA sponsors K&L Gates, Clark Nuber, and AH&T Insurance, respectively.
Greg Huey Brings a Wealth of Investment Experience to Position of AoA Program Director
Alliance of Angels was pleased to welcome Greg Huey, former principal at Seattle-based Frazier Technology Ventures, as the new AoA program director. Greg's primary mission as he takes the helm will be to strengthen investor outreach and education, building on the program's robust deal flow and status as the Northwest's premier entrepreneur-friendly angel investing group.
Framing the Future of Computing and of Washington's Long-Term Competitiveness
On May 1st, more than 700 business, research and policy leaders from across the state were on hand for the premier event for Washington's innovation community: the Technology Alliance's 2009 State of Technology Luncheon.
Governor Chris Gregoire kicked off the event, expressing appreciation for the innovative, forward-looking members of the audience who represent Washington's economic future. Other highlights included the Alliance of Angels 2009 Company of the Year announcement and key findings from the Technology Alliance's latest study benchmarking Washington's competitiveness in the drivers of a successful innovation economy.
The program culminated in a keynote conversation featuring one of those forward-looking innovators, Microsoft Chief Software Architect Ray Ozzie.
An experienced entrepreneur and industry visionary, Ozzie joined TA board member Ed Lazowska of University of Washington Computer Science & Engineering onstage to share his insights into the future of computing.
TA Chair Jeremy Jaech Urges Washington to "Put the Pedal to the Metal" in the Race to Grow Our Innovation Economy
Since 2003, the Technology Alliance has periodically benchmarked Washington's progress in advancing the essential drivers of a successful innovation economy: excellence in K-12 and higher education, strong public and private research, and a robust entrepreneurial climate.
At the 2009 State of Technology Luncheon, Jeremy Jaech, CEO of Verdiem, revealed which states are in pole position.
Important Dates
- September 1
- Alliance of Angels 10-Minute Pitch Clinic
- 2:00 pm - 5:00 pm
- Seattle
- September 11
- Science & Technology Discovery Series
- Featuring: Tadayoshi Kohno, University of Washington
- Computer Science & Engineering
- 7:30 am - 9:00 am
- Seattle
- September 17
- Technology Alliance Board Meeting
- 8:00 am - 12:00 pm
- Seattle
- September 28-30
- Technology Institute
- Leavenworth
