Skip Simms: The Ins and Outs of Angels in Michigan

This is a great video on Angel investors. First, an angel is someone who has a net worth of over one million dollars and has an income over the past two years of $200,000 or more. Angels look to invest in start up companies that are looking for money in the hundreds of thousands of dollars. Without angel investors, thousands of companies each year would never make it to market because they lack the funds neccessary to lauch their businesses. Start ups in Michigan however are lucky to have such wealth of investment money in the state. Michigan seems to have the right ecosystem for angels, especially with all the high tech jobs that are now currently being created in the state.

Angel investors are extremely important to a business, especially in the state of Michigan. What I have learned about who an angel investor is, is someone who knows how difficult it is to start a business and wants to help new entrepreneurs get on their feet. After watching this video and learning that their are 7 angel groups in Michigan, I can only hope that with the poor economy state that we are in, more angel groups have formed after the date of this published article. I would like to say that the movie industry has been a little like that of an angel investor; film production in Michigan has and still is contributing to our state funding. What Skip Simms said when answering the question of whether angel investors were similar to venture capitalists I found to be accurate. They both invest a significant amount of money into a business they see potential in. It is a good idea for angel investors to be located close to the company they are invested in, like Simms said. Similar to venture capitalists, they invest great amounts of money and should stay involved in the company. Unlike venture capital companies, angel groups have more faith in a start-up business. Venture capitalist's have a high percentage rate of investing in high-tech well-known industries such as Apple, Microsoft, and Intel. Small, start-up businesses have a better likelihood of being noticed by angel investors than venture capitalists. I think the next step needed to attract more Angel investors in Michigan is to inform start-up entrepreneurs where and how to find them; angel's prefer to be found through people they know, not by unknown entrepreneurs.

Hello my name is Kristen Ringel and I am a senior at Eastern Michigan University. The Angel Network is different than most venture capital firms. A clear benefit of the collaborative group is that it allows for a far reaching network for the professionals involved. They are spanned across Michigan, which has a business environment that is different than other states. Opportunities are less likely to be available in clusters located in a single area. Being able to view multiple proposals each month is a definite positive aspect of membership. It seems that they view their investments from a more personal perspective. Skipp Simms spoke of the group of investors as if they were a member of a social club. I would characterize the process of the investing as less bureaucratic, which may allow for the adoption of more risky investments. This is especially beneficial for Angels in the Grand Traverse county area. Biomass, wind energy and other opportunities are beginning to emerge in that region. According to the Chamber of Commerce there are readily available high tech commercial properties, alternative energy opportunities for cellulosic ethanol and low-interest financing through the EDC Revolving Loan Fund. The Angel network is a great innovation because it allows investors to share the risk involved in the investments. The result is allowing the members access to diversifying their portfolios. A person working alone would not be able to enter various different markets without much larger investments. This is a needed infusion of cash for the Michigan economic environment. My hope is that the Angels will invest in alternative energy in Michigan. Mr. Simms mentioned that as of yet we are not like a Silicon Valley. Energy innovation will lead to the next economic boom. The Angels have the opportunity to place Michigan at the forefront, and create our own Silicon Valley. Thank you. Kristen Ringel