Finance 25 non-profit organizations. Crowd funding was used by Brian Davis of Appleton to raise capital to make his idea reality. He developed Fix-ItSticks, a portable tool kit designed for bicyclists to carry. Davis used a crowd-sourcing site called Kickstarter to help spread the word about his invention and to raise money to mass produce it. Neenah-based Charitabli takes a similar approach but instead provides another fund raising vehicle for nonprofit groups. “We started Charitabli because we felt a lot of non-profits in the Valley weren’t utilizing (crowd funding) like others were around the country,” Dennis said. “It’s growing in awareness and we just wanted to educate people on crowd funding and how they could utilize it as another source of donations.”
Awaiting the payoff Investors seek a return on investment. Hartman said the objective of Angels on the Water is to make money.
“If we successfully execute on these three goals, we’re confident that our investors will get a great return,” he said.
Awareness rising Goff said there is better awareness of funding resources for businesses outside traditional lenders than when the venture capital group launched eight years ago. “We see plenty of deal flow and there are people looking for equity but with that said, a lot of those deals that come to us don’t meet our investment criteria,” he said. Goff often refers business to organizations like Angels on the Water. Hartman said Angels on the Water has attracted investors from around the Fox Valley including some from the Milwaukee and Madison areas.
“Many of our investors also enjoy being involved with entrepreneurs and helping new business grow,” she said.
She said her group also receives leads from other investment firms as well as business startup and accelerator programs including Gener8tor, which has offices in Milwaukee and Madison.
Martell said Eatstreet.com’s revenues are generated by collecting 10 percent of an order as commission from a participating restaurant.
Hartman said Angels on the Water does not advertise but networking with organizations including Gener8tor helps raise awareness.
“If someone orders on Eatstreet, it costs them the same as it would to order over the phone or in person at the restaurant,” he said.
“We do not engage in any active marketing because we typically have no trouble getting quality deal flow,” she said. “Those opportunities come to us through (our) website, word of mouth, relationship networks and Gener8tor.”
Martell said any company with investors needs to find a liquidity event for its shareholders. “For us, this would more likely be the sale of the company (and) less likely be an IPO,” he said. “Because of our rapid growth, our investors have been very patient and supportive in our expansion efforts.”
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Martell said Eatstreet.com’s focus is to grow its restaurant base, which added 4,000 restaurants so far this year, as well as expand its consumer base and grow revenues.
Hartman said the state’s climate for angel and venture capital investing appears to be improving. “By investing in entrepreneurs, you’re growing your own while strengthening our entrepreneurial ecosystem, which in turn will attract more entrepreneurs and capital to our state,” she said. n www.newnorthb2b.com