Angel network grows wings

The going was slow at first last fall when former Atlanta investment banker Steve Morris launched an angel investor network in Sarasota.

He fielded only a call or two a month in the beginning, but the new year has brought more interest. Morris has received almost a call a day the past few weeks, he says, both from potential investors and companies that seek capital.

The organization, the nonprofit Sarasota Angel Capital Network, now has between 20 and 30 members, says Morris. Members must pay $1,500 to enter the network and pledge to give $50,000 a year toward deals at a minimum of $5,000 per deal. “The goal,” Morris tells Coffee Talk, “is to spread the risk.”

Members sign confidentiality agreements, so the names of investors and possible companies in the mix haven't been released. But Morris describes a well-heeled eclectic group. The investors, he says, have a combined net worth that exceeds $1 billion. The money comes from a variety of industries, including cell phone towers, auto parts, hospitality and real estate.

Morris himself has a notable background: He ran a $300 million mergers and acquisitions division at Bank South. He also founded YoungBiz, a franchise-based company that sets up after-school programs and summer camps with a focus on financial literacy and an entrepreneurial education for children.

The big challenge Morris faces now is to find the right deals to bring to investors in the network. There are several possibilities in the pipeline, and he's done due diligence on a few of those companies. The network has a term sheet out now for a $500,000 investment into one firm. “This isn't about ego,” Morris told the Business Observer last year. “This is about getting real actionable transactions. I have no interest in making this a profit center for myself.”