Heaven-sent financing
Angel investors move, but keep mission
By KATHY KAHN
Irwin Glenn is still unpacking the files containing
the wish lists of dozens of businesses looking for
money from angels – not the kind with wings, but with
mighty greenbacks to keep businesses aloft.
With the economy in gridlock, finding funds to further
an invention – or an intellectual concept – can be
more than just a challenge. That’s where Glenn comes
in. Taking over for Robert Hannon, who retired from
Orange County Capital Development Corporation, the
new managing director not only brings new ideas to
the job, but a new name and address to the table.
The investment arm of Orange County Partnership is
now known as Hudson Valley Angel Investors. Its new
“roommate” is the Hudson Valley Economic Development
Corp. Both moved to their new location on Hudson Valley
Avenue in First Columbia’s business park the first
week of May. Glenn says working with Anthony Campagiorni’s
HVEDC team just makes good sense.
“We’re on the same page when it comes to bringing or
accelerating business in the region,” said Glenn.
While Orange County’s economic development arm contributes
$500,000 to its angel investor network, it’s Glenn’s
job to get the 25-30 people who sit on its board to
take a look at innovative Web endeavors, inventions
or the next generation of computer chip.
Glenn feels he’s well suited to the new job at hand:
He’s been an angel investor himself in at least 14
different start-ups. He’s also got a keen eye for technology:
He has worked with several dot-coms, and opened New
York’s Netscape office in 1995, staying with that company
until it was taken over by AOL. If anyone knows the
pain of promises unfulfilled or finding the golden
ticket, it’s Glenn. In today’s economy, it not only
takes a great business plan, but a great idea that
can be built on to get the attention of investors.
One area Glenn is focusing on is agri-technology.
“Right now, we’re working with Ron Khosla, who runs
the Huguenot Street Farm in New Paltz,” Glenn said.
“He created ‘Coolbot,’ which can turn an ordinary air
conditioner into a cooler that can get down to 32 degrees
Fahrenheit; a company that might want to set up a temporary
tent could use a ‘cold room’ temporarily.
“He’s just one of the people we are working with,”
said Glenn. “Another, Organic Nectars, offers low-glycemic
gelato and sorbet products with an agave base.” For
people at risk with diabetes or other food allergies,
it’s an idea that grabbed Glenn’s attention … and therefore
the attention of the angel investors.
“There’s no deal we won’t look at,” said the new managing
director. “A lot of people want to be the next Google,
but that doesn’t mean they will be. Angel investors
are more like ‘Missouri – the Show Me State,’” said
Glenn, who noted an experienced investor and lawyer
on the board look at the likelihood of every potential
success.
Now, the angels have spread their wings, so to speak,
taking on a new mantle, Hudson Valley Angel Investors.
The goal is to work with Sullivan, Orange, Ulster,
Dutchess, Columbia and Greene counties, the same backyard
as the Hudson Valley EDC works in. “It made sense for
us to be here,” said Glenn. “Working with Anthony (Campagiorni)
makes sense, because he travels the country looking
for business for these counties.”
Maybe Albany isn’t sure where the Hudson Valley Region
is, but Glenn and Campagiorni are. “It’s right here,”
Glenn said. “When you think ‘upstate,’ you think anywhere
past Rockland County. That’s us.
“Right now, we are working with the Dutchess County
EDC’s investor group,” said Glenn. “But we’ll also
be looking regionally to bring business here to the
Hudson Valley. In my opinion, the hub of this region
is Stewart Airport. It’s very attractive to business.
I’d like to see us become a ‘Long Island North.’ Our
goal is to attract business to the hub and these are
the counties that are all within an hour of the airport.”
Typically, angel investors meet two or three potential
businesses every two months, where they sit through
a presentation and decide if it’s a project worth pursuing.
RoadLok (featured in the February 19, 2007 edition
of Hudson Valley Business) was one of the companies
Orange angels took a look at – and liked. Owned by
brothers Eric and Adam Xavier, the motorcycle lock
they created is being taken to the next level, said
Glenn, with the brothers working with a company in
France to create a universal bike-lock. “It will be
the “LoJack” for motorcycles,” said Glenn. “Even now,
not a single bike using the RoadLok system has been
stolen. And insurance companies and bike owners like
to hear that. So do we.”
Angels typically keep their faces out of the limelight,
said Glenn. Some people enjoy the attention, but most
prefer to keep quiet about their investments. “Out
of 12 to 14 companies we review each year, a few are
chosen,” he said. “RoadLok was one of them.”
The next review in June will showcase two potential
candidates, something Glenn looks forward to. “Typically,
angel investors only give a minute to people looking
for capital. We give two companies a half-hour to present
their product or idea.”
Whether in a bull or bear market, angel capital is
sought after anyone with a “light bulb” moment, but
in today’s stagnant economic climate, it is even more
highly sought. Credit markets have tightened for businesses;
even the most successful have to jump through several
hoops to get the necessary financing. For Hudson Valley
Angel Investors’ hopefuls, a shot at getting startup
or additional funding is often the difference between
continuing or closing doors. “We like keeping the door
open,” said Glenn, “despite the current state of the
economy.”
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