We breathe life into great teams with great ideas to create great companies.
I have the greatest job in the world. I get to work directly with successful business people and exciting high tech startup companies. I unite both to create incredible companies that will someday be household names and create wealth. Sure, the hours are long, it is expensive, and financially risky. But, at the end of the day, I know we are making a difference in the world. Want to join us?
Angel Capital Group is a syndicate of angel groups and funds. The network brings Angel investors and entrepreneurs together in an environment that celebrates innovation, rewards strategic risk-taking, and focuses on performance. We embrace the concepts of economically sustainable cities, regional economic impact, and wealth creation.
Why do we do this?
We love breathing life into startup companies. They are the ground floor of our economy and the source of innovation in the world today. Without entrepreneurs and investors willing to share risk collaboratively by creating great companies, our way of life would collapse. This is the true job creation engine of our economy. This is also the best performing asset class in the market year after year after year. And, people work where they want to live, not live where they want to work. They want to build entrepreneurial capacity and economic viability into the fabric of their community. And, angel investing is a key driver.
What do we do?
- We aggregate exciting dealflow across the nation and over many industries for science and technology enabled startup companies.
- We unite great minds and aggregate capital to validate and invest in innovative business models by outstanding entrepreneurs.
- We optimize risk and returns by curating companies and proving the scalability of their revenue model.
How do we do it?
- Our process is designed to move companies from the point we invest to the point they can grow organically or we can hand them off to friendly investors at the next level.
- We meet monthly in cities across the nation to interview and evaluate startup companies.
- We focus on deep due diligence to improve our odds of success. Confident, experienced entrepreneurs understand the value this brings to both the company and the investor.
- We invest as a syndicate typically at the seed stage, bridge round, or early preferred rounds.
- We work with the portfolio company to prove its revenue model.
- We make a second larger investment in the winners.
ACG Is Leading The Way
The industry has changed since 2008. Venture capital firms have largely moved out of early stage investing. So, angels and angel groups are filling the gap. We are witnessing the rise of the professional angel group, which in many ways looks and acts like a micro venture capital fund, but made up of individual investors rather than limited partners. Where once the VC’s lead teams of analysts to evaluate companies, now this diligence is shared between the angels. We merged with RAIN Source Capital at the end of 2014 to expand our national reach and our ability to aggregate great minds and capital. We are a national network of experienced angel investors with a model that takes advantage of these changes in the market. Between the two combined networks approximately $48M has been invested in 140 companies creating 4500 jobs and $750M in follow-on capital investments by other funds.
Our passion is innovation, so we bring Angel investors and entrepreneurs together within a structure that mitigates risk and amplifies upside potential. If you’re ready start funding your future, get in touch.
History & Philosophy
In 2007, when Angel Capital Group was founded, public markets were in free-fall, job creation had stagnated, and America’s status as the premiere innovative economy in the world had been thoroughly undermined. But in our day-to-day meetings and relationships, we saw a powerful undercurrent of entrepreneurial drive. Americans wanted to create, build, and thrive. They just couldn’t find the funding they needed to get their ideas off the ground.
At the same time, we were hearing complaints from seasoned investors who were searching high and low for investment opportunities that fueled innovation and growth, both in local economies and nationally. Founder Rachael Qualls saw an opportunity to create a company that generated real economic growth by bringing investors and entrepreneurs together in a mutually beneficial environment. Angel Capital Group was born.
Our first chapters were in Nashville and Knoxville, TN. A small but committed group of seasoned, successful Angel investors in each location came together once a month to meet new entrepreneurs, discuss exciting opportunities, and collaborate together to gain the benefit of diverse experience. Now, we call this “crowdsourcing” knowledge.
Since our inception we’ve added chapters in Kansas City, MO; Denver, CO; Charleston, SC; South Florida; and others coming online soon. We decided early on that we would source deals from all over and that our members would have the freedom and opportunity to invest in any deal, regardless of geography. We plan to add even more chapters through 2014 to enhance our geographical advantages.
Now, we’re ready to further expand our network of committed Angel investors. There are too many opportunities out there to pass up, and as a network of Angels we’re ready to increase our funding power with new locations and new Angel members online.
To learn more about joining our cause, or about founding a chapter location, check out our membership page.
We focus on a niche but vital stage of private equity funding: Angel investing. Most entrepreneurs start their businesses or begin developing their ideas with personal funds and time. Occasionally, friends and family will lend them money, too. But it’s not until a business has demonstrated revenue and market traction, or has special patents, licenses, or trademarks, that they begin to appeal to venture capital firms, who are typically seeking to deploy $3,000,000 or more per investment.
Angels bridge the gap. Our capital helps entrepreneurs make critical investments in technology, research and development, marketing and sales channel development, and myriad other post-startup/pre-corporate processes required to truly bring an idea to market. Simply put: without Angel investing, nearly every product or service you rely upon today could have died on the drawing board.
But life for the individual Angel investor can be risky. A wealthy individual only has access to as many deals as exist in his or her limited sphere of influence. The lone Angel may not have the time or resources to personally screen each deal, to conduct the background reports and legal due diligence required to put the risk of adverse selection at bay. Most importantly, to sufficiently empower the entrepreneur with enough capital, the lone Angel may end up making fewer, larger investments–a practice that single-handedly results in higher risk, just the way that investing an entire 401(k) in a single stock would be considered high risk.
Our philosophy is that the risks of early stage investing are best managed by investing alongside a group of other successful Angel investors. Deal flow, screening, and due diligence are higher quality; legal, accounting, and deal structuring expenses are lower. Angels are able to invest smaller amounts in more deals since they can rely on other members to contribute the capital necessary to empower the entrepreneurs, so each individual develops a broader portfolio that still offers highly attractive potential returns.
Successful Angel investing requires a process and a portfolio strategy. Angel Capital Group was created to provide both.
What We Believe
We believe in investing smaller amounts individually in larger numbers of companies – statistically, this is a winning strategy.
We believe in investing in the American Heartland because we find outstanding teams, who no longer have to live on a coast to access resources to create highly productive companies, at valuations that make sense.
We believe that standardized, professional diligence is the key to selecting the very best deal flow in the nation and a winning portfolio.
We believe our speed of investment (two months from yes to a wire) is a key advantage for our network.
We believe our model is ready to scale across the US to create the first “community equity banking system.”
We believe that participation in an established angel group is key to reducing your risk in angel investing.
We believe this is the way we restore America’s economic greatness one community at a time.
If you believe these things, please contact us about becoming a member. To learn more, keep reading or just get in touch. Our monthly chapter meetings are the best way to experience what true Angel investing is all about.
Benefits Of Membership
We love to let our members do the talking on this one. The following list consists of common statements from members of our local network chapters on why they joined and what they get out of membership with Angel Capital Group:
- It’s a great way to stay connected to innovative, cutting edge developments in business, healthcare, and more.
- I get to meet and build relationships with other likeminded, successful entrepreneurs.
- I gain the benefit of many experienced investors from various backgrounds when considering whether or not to invest in a deal.
- I see better deals through a group than I could see through my personal network.
- I can send deals that come to me personally through Angel Capital Group and gain access to the due diligence, legal, accounting and deal structuring fees paid for through my membership fees, and also access more capital than I could (or should) personally contribute to a deal.
- I get to see deals from everywhere in the country, not just in my backyard.
- Dedicated staff handle all the details so I can focus on funding exciting entrepreneurs and innovations.
- Companies I invest in have access to the professional networks of every Angel Capital Group member, as well as staff resources and connections.
- Investing alongside other Angels lets me deploy smaller amounts of capital across more deals. I don’t have to dump all my Angel money in a small handful of deals.
We receive over 1000 applications for funding per year. We invest in 10 companies per year. So, this is a very competitive process that we take very seriously. We useVenture360 to collect deal flow. We require a standardized platform for sharing your deal information with our investors across the country. If you wish to apply for funding, please go to our website: Apply for Funding. This starts a formal process to move companies quickly and efficiently through our diligence process. All our dealflow comes through this portal. It gives us the ability to quickly tell them our level of interest in the venture and it serves as the basis for our diligence reports to our investor/members. Companies that apply, will receive a response. Help us help you by being as concise and to the point as possible in this process.
Want to work with us?
Executive Leadership Team
Eric Dobson, Chief Executive Officer
As CEO, Dr. Dobson is responsible for the implementation of all strategic plans and plays a critical role in developing and implementing the deal sourcing, screening, and due diligence processes that ensure our members are considering only high quality deals. He has expertise in entrepreneurship, startup technology ventures, business planning and development, intellectual property, sales, and marketing.
Dr. Dobson has spent the last 25 years working in a variety of venues from government to private sector, the last 13 on start-up technology ventures. The first 12 years of his career were spend in the private sector working in large scale IT database development and mining, what we now call Big Data. He was the founder of Navigational Sciences Corp. in 2000 deploying RFID technology for the commercial shipping industry and the Department of Homeland Security. In 2007, he founded TrakLok Corporation, a transportation security company focused on global tracking of commercial container shipments. In 2010, he was honored to receive the Navigator Entrepreneur of the Year Award by the Knoxville Chamber of Commerce. In 2011, TrakLok was awarded the Pinnacle Innovator of the Year by the Innovation Valley Technology Council and Knoxville Chamber of Commerce. Dr. Dobson remains a Lecturer at the University of Tennessee in the Department of Management in the School of Business. In his career as an entrepreneur, he raised over $12M from investors from leading angel and venture capital groups.
Scott Ewing, Chief Operations Officer
Scott is the Chief Operating Officer and is in charge of deal flow management. He has an extensive operations and financial services background, and brings key skills in intellectual asset management, technology licensing, and executive leadership. He is a former US naval aviation commander and space operations specialist with two decades of government and industry experience in international programs and technology transfer. Scott also brings seven years’ post-Navy experience as a FINRA-registered investment professional. Scott was most recenlty the CEO of Venture Incite (VI), which was formed to create a new public-private partnership model for migrating high-potential technology out of research laboratories to develop commercially valuable companies and products. VI fostered start-up businesses that apply science and technology derived from potentially groundbreaking university and government research. The firm’s hybrid model combined elements from traditional venture capital investing and technology transfer, while leveraging government funding to achieve technology maturation. VI’s model aligned the objectives of capital sponsors, research institutions and researchers, entrepreneurs, and third-party stakeholders to a primary goal of launching promising technologies and creating valuable new companies.
Steve Mercil, Chief Business Development Officer
Steve is the Chief Business Development Officer and is in charge of creating new chapter/funds for the network. Steve is the most prolific angel group founder in the nation. Steve was most recently the founder and CEO of RAIN Source Capital RSC. ACG and RSC merged in 2014 to create a new model of angel network. RSC created 25 angel capital funds, from $1M – $3M in size, across 8 states with 450 members over the last 10 years. These RAIN Funds and their members have invested over $40M in 106 companies and have an additional $5M in committed capital for future investment. RSC’s portfolio has created over 4500 jobs and $750M in follow-on investment by other funds. Also, RSC is a principal of the InvestAmerica NW, LLC, and the General Partner of Invest Northwest, LP, which is a venture capital fund focused on middle market and later-stage companies. InvestAmerica has invested $15M in 20 companies. RSC empowers angel investors using a proprietary process to create, capitalize, and ignite angel member managed funds. Steve is a former Board member of the Angel Capital Association, has extensive experience in angel and venture capital as well as other areas of private equity.
- Shane Spencer, Kansas City
- David Vulcano, Nashville
- Michael Boorom, South Florida
- Leo Knight, Knoxville
Shane Spencer is the Chapter President of our Kansas City Chapter. He is a highly experienced portfolio manager and capital formation professional. He is the Managing Director of Petro Royalty Partners and the CEO/Founder of Green REIT. Shane has extensive experience in creating and managing funds and comes from a family of wealth managers. Formerly, he was a Director of Archos Capital Partners and CEO of The Invicta Company. Shane adds great expertise to our Kansas City operations.
As our Nashville Chapter President, David Vulcano is responsible for the activities and membership experience of our Nashville area members. He also assists us in due diligence and serves as the Board member for our portfolio company, Front Gate Films.
David is the AVP, Clinical Research for Hospital Corporation of America (HCA). Responsible for the compliance and growth of clinical research as well as lead the Human Subject Protection Program in the largest non-governmental provider of hospitals, surgical centers and other healthcare delivery service lines. HCA is the nation’s leading provider of healthcare services, composed of locally managed facilities that include 173 hospitals and 108 outpatient centers in 20 states, England, and Switzerland.
Michael Boorom is a retired entrepreneur with ten years in the medical equipment field. Prior to that, he had ten years in consumer product sales and marketing for Coca Cola Foods, P&G, and The Kroger Company. Michael has a BBA in Marketing and Communications from Stephen F Austin State University and is currently President of the Heart Gallery of Broward County, a non-profit that matches kids with foster parents. Michael has started and exited from three companies. He is currently working to start number four. Michael lives in Fort Lauderdale, Florida, is married, and has two boys.
Leo Knight is our Knoxville Chapter President (second oldest chapter started in 2008) and a serial entrepreneur and angel investor with over 20 years of experience in startups and investing. Leo has invested in over 40 companies, actively runs 7 companies, and is in the midst of starting 4 additional companies. Leo is President of Entrepreneurial Collective, Inc., President of Entrepreneurs of Knoxville, Inc., and is very involved in the entrepreneurial community. Leo has been a real-estate investor since 1992 and currently owns commercial warehouses, office buildings, retail centers, industrial properties, and development tracts. Leo is an Elder at Sequoyah Hills Presbyterian Church and serves on the board of the Rotary Club of Bearden. On December 27th Leo will celebrate 24 years of marriage to his high school sweetheart, Debbie. Leo and Debbie have four sons: Benjamin (19); Ryan (17); Thomas (13); and Joseph (13). Leo’s hobbies include boating, hunting, hiking, cigars and technology.