Business plans run dry for angel network

March 19, 2010
Back to TopCommentsE-mailPrintBookmark and Share

This is unprecedented. Halo Capital Group, the angel investor network, cancelled its bimonthly meeting this week because there weren’t enough potential deals to parade before the 20 members.

Jim Jay, who organizes the meetings as CEO of TechPoint, the not-for-profit group that promotes the state’s technology sector, says he can’t remember a time in Halo’s 20 months of existence when it wasn’t worth meeting.

“We’re looking for certain types of deals. We have to be selective,” Jay says. “We’re not going to have a meeting for meeting’s sake.”

The meetings, which move among members’ homes and offices, usually feature two business plan presentations.

Jay hastens to add that Halo has closed 13 deals for a total of $13 million, and that another is set to close soon. So it isn’t as if the group is going dormant.

The problem is a lack of deals like the ones Halo members want, he says. That’s a technology company with proven markets and executives. A revenue stream isn’t necessary, but is a plus.

Jay says the pipeline for the next meeting is “good.” But he says the economy might be putting a damper on entrepreneurs’ spirits. And those who are pushing ahead may be getting plenty of attention from investors.

“There are certainly deals still getting done,” he says.

What are your thoughts? Why would Halo struggle to find good deals?

  • Relax
    Relax folks. So there are no deals to do this week -- and maybe no more the rest of the month. The initial tsunami of pent up tech deals has smoothed out. The "need" to do deals is the emotional response of an immature investor and creates an instant path to investment loss. Patience. Good deals will show on the radar when they are ready. It's much better to wait for good deals than to jump into any deal. With so little funding available for tech deals in Indiana, Halo will have their opportunities soon. In the mean time, relax, have a cup of coffee, and enjoy the downtime.
  • Pick me! Pick me!

    If their pipeline is momentarily dry, I'd love to have spent a few minutes.

    I'm not at the business plan stage, but I've been scratching notes, etc. on something which might have some mild interest to the business|tech world. I have had Google building a living knowledge base for it.

    I should have started when I originally thought of it, as I'd be in a better position re: time & market growth.

    I've had a couple of people sniffing around â?? with the standard NDA in hand â?? wondering what I'm up to.

    I *am* going to be ready before the Indy Startup Weekend.

    I hate writing lots of stuff when a few minutes of give & take can determine if/when something is feasible or has a different direction, based upon that conversation. A little formal than the traditional "Beer & Napkin" meeting.

    I used to write business/technology white papers, looking ahead 12-14 months. Conjecture there wasn't an issue.

    I'm more or less a "Blue Sky Guy". And ... I have a *very* thick skin when it comes to tossing something onto the table. [3]



    [1] Beer & Napkin? "Screw that idea, Clinton". [2] You want a good place to one-up that? Try Bravo!. They have formal tablecloths, but have a raft of 3.5' x 3.5' slices of butcher paper. They empty the table, pull off the old paper, put a new one down, restore the various bricâ??aâ??brac and ... If you unfold the napkin you're using with beer â?? as if you could write with it splayed, how can that approach something with the paper?

    [2] From "First Blood" (1982)

    [3] "Some critics have amused their readers with the wildness of the schemes I have occasionally thrown out; and I myself have sometimes smiled along with them. But such sparks may kindle the energies of other minds more favorably circumstanced for pursuing the inquiries."
    â?? Charles Babbage

Post a comment to this blog

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
  1. The $104K to CRC would go toward debts service on $486M of existing debt they already have from other things outside this project. Keystone buys the bonds for 3.8M from CRC, and CRC in turn pays for the parking and site work, and some time later CRC buys them back (with interest) from the projected annual property tax revenue from the entire TIF district (est. $415K / yr. from just this property, plus more from all the other property in the TIF district), which in theory would be about a 10-year term, give-or-take. CRC is basically betting on the future, that property values will increase, driving up the tax revenue to the limit of the annual increase cap on commercial property (I think that's 3%). It should be noted that Keystone can't print money (unlike the Federal Treasury) so commercial property tax can only come from consumers, in this case the apartment renters and consumers of the goods and services offered by the ground floor retailers, and employees in the form of lower non-mandatory compensation items, such as bonuses, benefits, 401K match, etc.

  2. $3B would hurt Lilly's bottom line if there were no insurance or Indemnity Agreement, but there is no way that large an award will be upheld on appeal. What's surprising is that the trial judge refused to reduce it. She must have thought there was evidence of a flagrant, unconscionable coverup and wanted to send a message.

  3. As a self-employed individual, I always saw outrageous price increases every year in a health insurance plan with preexisting condition costs -- something most employed groups never had to worry about. With spouse, I saw ALL Indiana "free market answer" plans' premiums raise 25%-45% each year.

  4. It's not who you chose to build it's how they build it. Architects and engineers decide how and what to use to build. builders just do the work. Architects & engineers still think the tarp over the escalators out at airport will hold for third time when it snows, ice storms.