Program Connects 'Angel Investors' With Entrepreneurs

Akron, Ohio, Feb. 1, 2006 — The University of Akron Research Foundation (UARF) and regional partners have led the creation of an Akron-based ARCHAngel (Akron Regional CHange Angel) Network as a means of bringing potential “angel” investors and area entrepreneurs together.

The network will introduce investors to technology-based investment opportunities within the region, focusing on the area's strengths in health care, information technologies, polymers and other advanced materials. Angel investors are defined as high-net-worth individuals who are typically willing to make a financial investment in “early-stage” companies.

“We recognized the Akron area has several unique advantages for new companies, including strong industrial and manufacturing expertise, diverse research investments, a significant talent pool, and a strong university and health care focus,” says Gordon Schorr, who along with Barry Rosenbaum, both senior fellows at UARF, leads the ARCHAngel Network initiative. “We believe if we proactively engage potential angel investors by introducing them to quality deals, it will create opportunities for greater investment and growth in the Akron community.”

The first Akron ARCHAngel event, which was held in November 2005, showed promise in realizing this goal by drawing nearly two dozen interested investors to hear presentations from three promising Akron-connected companies. Since the event, OrthoHelix Surgical Designs, an Akron-based medical device company developing a comprehensive set of instruments and implants for use in foot, ankle and hand reconstruction surgery, has closed a multi-million-dollar Series A financing round. MemPro Ceramics, a Colorado-based company, plans to incorporate in Ohio and form a research and development company to commercialize a new filtration technology that is being developed at The University of Akron. Advanced Coatings International, an Akron based electronics coatings company that relocated from Israel and partnered early on with the university, is engaged in follow-up discussions with several local ARCHAngel investors.

“We are looking to develop relationships between promising new technology-based businesses and the larger Akron industrial and investment community,” says Rosenbaum. “As these companies grow and become successful, our community will also. The ARCHAngel Network is working with the City of Akron, the Greater Akron Chamber, BioEnterprise, Summa Enterprise Group, JumpStart and Akron-based private companies to develop the deal flow.”

“We are focused on finding and backing the most promising entrepreneur-led companies in the Greater Akron area, and those ready to locate here. Our mission is to create individual investor wealth and at the same time expand the critical mass of new and growing ventures in the Akron area,” says Tom Barratt, president of The Tom Barratt Companies, who serves on the ARCHAngel deal review committee and sees the Akron area as well suited for angel investor activity. “We have been supporting initiatives and companies in this area for the past several years, and we see tremendous opportunity here in Akron.”

“Angel investors have played a critical role in the economic growth in technology hotspots such as Silicon Valley and Route 128,” said Baiju R. Shah, president of BioEnteprise. “Their funds, networks and mentorship have provided the foundation for launching many successful companies. Angels will play a critical role in transforming Northeast Ohio's economy toward a knowledge economy. We are pleased that The University of Akron Research Foundation has taken a leadership role in catalyzing this important component of our region's transformation.”

The network plans to meet quarterly. The next ARCHAngel network event will be held Feb. 15, where three new Akron-area companies and one emerging technology will be presented. For more information on the ARCHAngel network, call 330-972-2681.

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