NBIA Partners with LocalFund to Help Match Start-Up Companies with Angel InvestorsApril 16, 2002ATHENS, Ohio—The National Business
Incubation Association (NBIA) has partnered with LocalFund, Inc.
to help business incubator managers match start-up businesses
with private investors through an Internet-based network.
The program allows incubator managers
to establish their own entrepreneur-investor networks where potential
investors can learn more about local start-up companies ready
for investment. Entrepreneurs submit business plan summaries through
a secure Web site, and potential investors search the site for
companies that match their interests. Investors then contact entrepreneurs
directly.
By creating a local entrepreneur-investor
network, incubator managers provide new businesses with access
to capital and give angel investors opportunities to develop their
portfolios. Under the partnership agreement, NBIA members receive
discounted rates on all LocalFund software.
"Raising capital is one of the
greatest challenges a new and growing business faces," said
Dinah Adkins, NBIA president and CEO.
"Through our partnership with LocalFund, NBIA member incubators
are able to help their clients meet this challenge more effectively
and to give angels an opportunity to invest in the development
of their local economies."
The Center for Venture Research at the
University of New Hampshire at Durham estimates that approximately
350,000 angels invest more than $35 billion of capital annually
in the United States. Most investors look to fund start-ups in
their communities to promote local economic development, so local
entrepreneur-investor networks are an effective way to bring the
two groups together.
"LocalFund provides business incubators
with an innovative way to help their clients get access to angel
investors," said Cliff Grant, LocalFund
president and CEO. "Angels exist in virtually every community
and most prefer to invest in local businesses, so it's best to
have a local network. While most angels are hesitant to join a
national network, they are excited about a local program where
they can see the ventures and invest in local people they can
get to know."
Business incubation catalyzes the process
of starting and growing companies. A proven model, it provides
entrepreneurs with the expertise, networks and tools they need
to make their ventures successful. Incubation programs diversify
economies, commercialize technologies, create jobs and build wealth.
Today, there are more than 900 of these programs in the United
States, up from 12 in 1980.
With about 1,200 members, the National
Business Incubation Association is the world's leading organization
advancing business incubation and entrepreneurship. It provides
information, education, advocacy and networking resources to bring
excellence to the process of assisting early-stage companies.
For more information about business incubation or NBIA, visit
http://www.nbia.org.
LocalFund, Inc. is an application service
provider that helps economic development organizations match entrepreneurs
with private angel investors. Believing that the entrepreneurial
spirit is a key component to local economic development, LocalFund
has a passion for supporting organizations that foster entrepreneurship
and innovation. For more information, visit http://www.localfund.com.
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