How University-Affiliated Angel Groups are Helping Fuel Startups While Supporting Higher Education.
Angel investors typically congregate into formal angel groups based upon geographic proximity and interests in certain industry sectors and/or specific growth stages. While these characteristics generally reflect the commonality within the Baylor Angel Network (BAN), what makes this angel group unique is how they have integrated Baylor University into their operation.
Operating an angel group within a university setting drives benefits to a broader group of beneficiaries, from business students to the business schools they attend.
In addition to the standard angel-entrepreneur activity, Baylor’s Hankamer School of Business receives an angel-designated percentage of the profits from each successful investment in the form of a gift to the University – on average, 25% of the profits generated by the donor from a successful exit. Also, a few students at Baylor are selected to serve as research analysts who contribute to the evaluation of prospective deals. Baylor Angels also mentor the student analysts and share their wisdom with students taking entrepreneurship classes. BAN doesn’t require its angel members to be alumni of Baylor, but they do expect each BAN angel to contribute some of their returns to the University.
ActSeed is grateful to have the Baylor Angel Network involved in the ActSeed Investor Group.
The disciplined, methodical approach that BAN applies to their investment decisions meshes well with ActSeed’s own methodical process for helping investors quickly understand “what’s under the hood”. While BAN does very well in analyzing their deal flow internally, ActSeed Company (Entrepreneur) Scores provide BAN angels with another indication of how well a startup will perform in the due diligence phase. In other words, ActSeed can help entrepreneurs quickly “bubble up” to the surface with angels and reduce the time it takes to go from first contact to funding decision.
Kevin Castello, Executive Director of the Baylor Angel Network, shares his thoughts:
“Excellence is revealed in execution. A lot of emphasis is placed on the vision, the business plan, the team, and other components but without execution they are just words on a page. There are so many challenges for a new entrepreneurial venture and it is critical to have an honest evaluation of your business. I love that ActSeed is committed to help entrepreneurs be prepared for their venture and to provide them tools for that process. BAN looks forward to a continued partnership with the ActSeed community.”
Before approaching the Baylor Angel Network or any angel group, an entrepreneur must first explore whether investors would even be interested in their venture. ActSeed’s Investor profile helps clarify this. For example, an entrepreneur can review the Baylor Angel Network’s ActSeed profile to learn:
- What types of deals generally interest the 40+ angel investors who are members of BAN,
- Where BAN angels are looking to invest (across five southwestern states), and
- How much they intend to invest (amounts usually between $100,000 and $300,000, including participation in larger deals up to $2 million when there’s a lead investor already established).
For entrepreneurs who may be thinking about approaching the Baylor Angel Network, consider approaching them through ActSeed’s Entrepreneur Group where you can do more than pitch them an idea – you can demonstrate your “investor-readiness” through your ActSeed Scores and possibly get moved to the front of the line for consideration.
To learn more about the Baylor Angel Network and how they are integrating angel investing within the University, you can download their introductory document here.