Recently, a gathering of angel investors took place at the Jeremy Ranch Country Club, hosted by Doug Wells, head of City Angels. Three entrepreneurs presented their startups to an audience of over 80 investors. The focus of these angel investors is chiefly on up-and-coming tech companies, particularly those from Utah.
City Angels was formed to meet the need for angel funding in Utah, a state rich in entrepreneurial spirit but lacking adequate angel investment. Ted McAleer, a founder of City Angels, believes that individual wealthy investors are integral to providing seed funding to growing companies. Quickly, City Angels became a crucial player in Utah’s angel investor community, addressing a noticeable gap in Utah’s business investment field.
According to McAleer, angel investments are a vital funding source for technology-based startups that have found a productive market fit. City Angels aims to harness the support of semi-retired individuals aged 50 to 75 years. The value of these angel investors is not only financial; they also provide industry expertise, mentorship, and networking opportunities. This method ensures that entrepreneurs have room to grow and succeed while allowing the investors to stay updated on the latest tech trends.
McAleer believes that angel investments can offer returns as good or better than traditional stock markets. These investments allow for personal connections beyond the financial involvement and provide a sense of achievement as investors actively contribute to the shaping of the businesses. Despite the inherent risk, wisely placed angel investments can yield substantial rewards.
Membership of City Angels has grown from 20 to 87 members since it began, each member injecting $25,000 into the fund biennially. An investment deal mandates a minimum commitment from at least four angel investors, totaling $150,000, a sum that the fund then matches. This unique model significantly amplifies the impact of the investment.
Eric Lo, the founder of Krado, a plant sensor manufacturer commended City Angels’ funding strategy in 2022. Lo heaped praise on City Angels for their swift decision-making and deep business relations, setting them apart from their competitors in Salt Lake City and Wyoming. The group’s ability to discriminate between viable and less ideal investments sets it apart in the industry.
