Rob Wiltbank of Montlake Capital and Willamette University kicks off the 2013 Southern Oregon Angel Investment conference at Bigham Knoll in Jacksonville.
The HALO report tracks where angel the investment dollars are going. About $550,000 goes to companies in the first-round of angel investment. Investors have to make sure the don’t lose their share of the business during later investment rounds.
Two-thirds of all venture capital goes to California and Massachusetts. In angel investment it’s distributed throughout the country. The Northwest gets 8.3 percent. California gets 15.9 percent and the Southwest sees 13.6 percent of the nation’s angel investment.
“There’s a prospect for actual returns,” based on what’s been invested in the past six years, Wiltbank says.
Keep in contact with your investments, but don’t micro-manage. When angel investors write a second check into the same company, the same thing happens with venture capitalists.
“The only time I put more money in is if the company is doing me a favor,” Wiltbank says. “If you hesistate, don’t sign up for the next round. Hold the follow-up check to the same standard as the first one.”
I would rather add another company to my portfolio than add to the ones I have,” he says. “Getting diluted is not the problem with a company making money.”
First up on the podium is Sarah Cota, developer of the JettStream JettPak to deliver nebulized asthma medication while they are sleeping. It’s been through tests and its patents are pending. It can be used for a variety of diseases, but childhood asthma is first step.
With coming changes in health care, such a device will aid return visits to the emergency room.
The JettPak sells for $200 and test marketing is coming soon.
The two-year-old Central Oregon company has patients signed up for clinical trials at St. Charles hospital in Bend. Trials have been launched overseas as well. .The company has raised $200,000 already through a convertible note and plans to raise another $550,000.
Parents need to be in the room with children while they are taking the treatment. The approach “takes the fight out of the treatment” assuring effectiveness.
Cota took her son Jett to the emergency room 18 times prior to introducing the prototype. “He’s our guinea pig,” Cota says.”Since we began using the prototype we haven’t had to take Jett to the emergency room.”