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BizVoice/Indiana Chamber – September/October 2017
Angels Invest in, Help Guide Entrepreneurs
UNDER THEIR WINGS
By Symone C. Skrzycki
Addictive. Rewarding. Risky.
These traits are all part of the angel investing
process, according to serial entrepreneur Oscar
Moralez.
He’s managing director of VisionTech Partners (providing
management consulting services for early stage technology companies)
and co-manager of its investing arm, VisionTech Angels.
“Angels are accredited investors who have the wealth and in
theory, the level of understanding and sophistication to make these
high-risk investments primarily in start-up companies,” Moralez
explains. “These angels can either work individually or they can work
as a group.”
The goal, he reveals, is to invest their dollars “in the hopes that
these companies are going to grow and prosper and then ultimately
sell or have some sort of a liquidity event that results in returns that
are certainly significantly higher than the market.”
But the reality, he confides, is very different.
“Statistics vary a little bit, but somewhere between 50% and 70%
of all of your investments are going to go belly up and you’re going to
lose 100% of your money.”
The key is to build a portfolio of successful companies that can
offset the other losses.
“One or two companies out of, in theory, a portfolio of say 20
that have exceptional returns will more than make up for all the losses
you have such that your returns overall across the entire portfolio
exceed the market traditional returns,” he maintains.
VisionTech Angels has five chapters: Bloomington, Fort Wayne,
Greater Lafayette, Indianapolis and a virtual chapter.
Angel investing comes in a variety of forms. Other groups that
have developed include the Regional Angel Investment Network
(RAIN Indiana) in northeast Indiana and MAGNET Investors in the
Michiana area (specifically Elkhart, Marshall and St. Joseph counties).
Lighting the way
Larry Garatoni is a proverbial firecracker.
Throughout his career, he has demonstrated passion, wit and a
wealth of business knowledge. Among his endeavors is helping start
the South Bend Career Academy in 2011.
Garatoni co-founded MAGNET Investors with Jim Larkin, who
he calls its driving force.
“MAGNET Investors is a group of local business people. At the
Riley Gibb (right), president of VisionTech Angels’ Greater Lafayette chapter, says it’s critical to harness innovation that’s emerging from Indiana’s
research and universities.