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Ohio TechAngels announce new investment fund

Posted by Kitty McConnell on February 10, 2014

From today's announcement via TechColumbus:

Central Ohio's entrepreneurs have another new source of investment capital with the announcement of Ohio TechAngels's OTAF IV. The $7.32 million fund raised $3.66 million from ninety-seven investors with a one-to-one match from Ohio Third Frontier (OTF).

 "Our group's growth reflects the increasing allure of angel investing" said John Huston, OTAF founder and manager. "A decade ago fifty Central Ohio businessmen provided $1.3 million to launch our first fund, and now we have 340 members which include fifty-seven women and investors from a dozen states."

 OTAF IV plans to invest $375,000 to $500,000 in each of fourteen new ventures over the next thirty-six months. The fund invests in Ohio-based high growth technology-driven businesses, including those in software, advanced materials, sensors and instruments, and life sciences. Ohio TechAngels favors companies where members' coaching, mentoring, and industry or technical expertise can directly impact on the startup's opportunity to succeed. The group also prefers companies which have validated their feasibility with some level of customer revenue.

This is the fourth fund for the angel group, which has one of the world's largest memberships of accredited angel investors. The first three OTAF funds attracted 282 members and are fully invested.

"Our investees have excelled at raising capital," Huston said. "In addition to the $13.8 million which our members have invested alongside our three funds, other co-investors have provided an additional $332 million."

 

The three previous OTAF funds made sixty-three investments in forty-three Ohio-based technology startups, totaling $25.2 million including the member "sidecar" investments.

 "Ohio TechAngels continues to build out a strong angel group legacy," said Tom Walker, TechColumbus CEO. "Angel investing is risky. Anytime you have ninety-seven investors willing to put up more than $3.5 million in a new fund to support entrepreneurs and innovation, there is something powerful happening."

Ohio TechAngels continually seeks to diversify member participation in the funds. Many of the investors in OTAF IV are new to the group, adding more entrepreneurs and technology industry experts than ever before.

"People join angel groups because they have an interest in the asset class and in starting new companies," Walker said. "As investors, they seek financial returns. Angel groups offer the added benefits of investing in the community, learning about early stage investing from people with experience, and opportunities for board participation. Whatever the goal, angel investing is a proven hands-on way to join with like-minded people to help build innovative companies, the kind of companies that create jobs and wealth."

As with previous OTAF funds, TechColumbus is the administrative manager for OTAF IV. This brings total funds under management at TechColumbus to more than $40 million. 

 

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