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The Pennsylvania Angel Network launches state funded effort to bring together the state’s wealthy investors and companies seeking funding from them.

The Pennsylvania Angel Network http://www.paangelnetwork.com has launched a Web site for the state’s wealthy investors and companies seeking funding from them.

PAN, which is based in Harrisburg and has received almost $500,000 from the state to create the Web site and pay employees, got its site up and running last month at http://www.paangelnetwork.com.

(Thanks to http://www.NASVF.org for passing this along- Russ)

http://www.bizjournals.com/industries/banking_financial_services/venture_capital/2004/10/18/philadelphia_story7.html

The site gives members of the state’s roughly 20 angel groups a way to check out companies seeking seed or early-stage funding.

Angels who investigate a company on the site are contacted by PAN for their opinion of it. If they’re interested in investing in it, PAN will help them work with other angels who want to add their investments.

Both angels and entrepreneurs say making it easy for angel groups to work together is critical to the state’s early-stage companies.

"There is a significant gap between what angels are prepared to fund and what venture capitalists are prepared to fund," said Ivan Ruzic, one of 26 members of area angel group Robin Hood Ventures.

Venture funds typically do larger investments, while angels often limit investments to a few hundred thousand dollars. That has created a scarcity of investors able to put about $1 million to $2 million into a company.

PAN supporters think it will allow the state’s angel groups to work together on larger deals than they would work on individually, thereby closing the gap between traditional angel investing and venture-capital investing faced by young Pennsylvania companies.

"[That] is really the only way we’re going to create new technology jobs in this state," Ruzic said.

PAN also offers companies a way to get their story to most of the state’s angel groups simultaneously.

In addition to its state funding, PAN has received assistance from companies and people interested in supporting angel investing in the state.

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