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Local group helps startups take flight. Angel investors put faith in little companies’ big ideas

Typically, angels are more often felt than seen. A group of 25 angels – the majority of whom reside in Whatcom County – is no different.

The Bellingham Angel Group describes “angels” within the investment community as high net worth individuals who fill in the investment gap between initial investors such as friends and family, and traditional venture capitalist investors. The Bellingham Angel Group tends to focus on early-stage companies that need more capital investment than can usually be generated by the entrepreneur, but are not sufficiently developed to attract the interest of today’s average venture capital group.

The Center for Venture Research at the University of New Hampshire, which does research on angel investments, estimates the total investment from angels in the United States is between $20 billion and $50 billion as compared to the $3 to $5 billion per year that the formal venture capital community invests at this stage.

For confidentiality purposes, Bellingham Angel Group members are not publicly identified. In an effort to help the community understand their ambitions, however, three members have agreed to identify themselves and give the public a rare peek into a low-profile group working to improve the economic future of Northwest Washington through targeted local investments.

Bellingham reflects many of Washington state’s positive results from the WTC report. Washingtonians are innovators. The state leads the country with the generation of new ideas and the translation of these ideas into commercially successful products and services. Washington had the highest rate of new company formation for five years running until neighboring Idaho recently took the lead. Montana ranks third. This strong performance by Northwest states exemplifies that this region is a clear leader in entrepreneurial growth. As groups like the Bellingham Angel Group invest in this innovation by helping startup companies, more jobs are created and, ultimately, the region benefits from a more robust economy.

by Jessica Evans

Full Story: http://www.nwbusinessmonthly.com/

(Thanks to Liz Marchi for passing this along. Russ)

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