March 2007
Features  

Sustainable Competitive Advantage  

Investing in Agriculture  

On the Deal-flow Pipeline  

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ePlan - WAN

When starting a company, many entrepreneurs do not consider debt a realistic option for raising capital. In this month’s eVestor we are offering a new perspective by featuring sources of debt designed for start-ups. Below we profile an entrepreneur who used a SBA program to secure his start-up capital. We also profile an investor-member who has created a new type of fund that makes debt investments in start-up firms.

Monthly Member Profiles
 

Entrepreneur: Side-N-Saw
An entrepreneur with an ingenious invention desperately explores the last conceivable avenues for financing. He watches in agony as his final financing option shuts before him and thinks he’s left with nowhere to turn. But, like many others on the same journey, he doesn’t see what could be his saving grace.

Fortunately, USA Ingenuity President, Tom Smith found his savior. After no success securing financing from investors, private lenders and several other sources Smith teamed with Associated Bank, one of Wisconsin’s SBA preferred lenders. Read more...

Investor-members, logon to the Deal-flow Pipeline to view USA Ingenuity's executive summary. Not an investor-member of WAN? Learn how to join here.


Investor: Madison Development Corporation
For 30 years Madison Development Corporation has been making loans to community businesses that have faced difficulty securing funding. In the interest of doing the same for high-tech start-ups, MDC launched the Venture-Debt Fund. By bringing together a coalition of investors, MDC has set out to invest in entrepreneurs who otherwise may have trouble securing funding. Read more...


Deals Made
 

A total of $27 million in two deals were reported to WAN in February.

GenTel BioSciences $2 million by Wisconsin Investment Partners* & NEW Capital Fund*
North Prairie Productions $25 million by various investors
*WAN Investor-member

Are we missing a deal? Please e-mail us at info@wisconsinangelnetwork.com.


Investing Resources
 

Entrepreneurs
The Wisconsin Angel Network entrepreneurs’ resource page has a section dedicated to debt and grant financing. There you can find more details on SBA loan programs, a listing of SBA preferred lenders in Wisconsin, and Suby, Von Haden and Associates’ quick reference guide to various debt instruments designed for entrepreneurs.

Investors
Performing due diligence on potential investments can be a daunting task. To assist investors with this, the Wisconsin Angel Network investors’ resource page includes a due diligence checklist developed by the Angel Capital Association. The checklist steps through the fine details of performing due diligence on an investment target.


Upcoming Events
 

Entrepreneurs
2007 Small Business Conference March 22, Madison, free
2007 Midwest Biotech Symposium April 25-26, Madison, free - register by April 11
Make Mine a $Million Business Conference May 21, Madison

Investors
Investing in Agriculture hosts Badger AgVest & Ag Innovation Center, March 22



Though conventional wisdom leads many entrepreneurs to write-off debt as an option, there are debt programs and funds designed for start-ups. Entrepreneurs increase their potential of completing a successful round of funding by exploring all financing sources, including debt. Debt funding also leverages equity investments, giving investors more bang for their buck and keeping precious equity in an entrepreneur’s pocket.

Please forward copies of this month's eVestor; if you're not on our e-mail list, click here to join.

Sincerely,

joe kremer's signature
Joe Kremer, director
Wisconsin Angel Network