Angel Investors Breathe Life Into Alabama Businesses: An Interview with Richard Marsden

Mr. Marsden is an attorney at Lanier Ford in Huntsville, AL. His practice is concentrated in the areas of corporate law, securities, and technology. He advises clients entering into private equity transactions and assists them in negotiations with venture capitalists.

Key Takeaways:

  • Middle-market Alabama companies in the $10 million to $50 million range can have a difficult time finding capital.
  • Bank inactivity has forced underserved middle-market companies to look for opportunities in private debt.
  • Organizations like the Huntsville Angel Network provide structure and efficiency to the investment process so that those looking to invest make well-informed strategic decisions with their money.
  • For companies above $50 million on the acquisition side, most capital comes from out-of-state.
  • State and local governments should create incentives for retaining top talent.
  • A diverse management team and a strong board of directors make a company more attractive to investors.

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Tech Companies Attracting Out-of-Region Investors to North Carolina: An Interview with David Jones

Mr. Jones is co-founder of Bull City Venture Partners in Durham, NC, and partner of Southern Capitol Ventures in Raleigh, NC. He previously co-founded and served as the Chief Technology Officer of Orthocopia.com.

Key Takeaways:

  • In today’s market, growth is one of the greatest definers of value. Consequently, private equity groups are competing to invest in tech companies because they are fast growing, require relatively little upfront capital and offer the potential for a quicker return.
  • Traditional tech centers like San Francisco, New York and Boston are investing outside their region because markets are overcrowded and value can be found in innovative companies in areas like the South.
  • The startup market is gaining strength because successful entrepreneurs who have sold their businesses are choosing to reinvest in their local communities by funding early stage companies.
  • Industries that have a binary outcome – meaning they are either approved or not, like biotech – are becoming less attractive to investors. Meanwhile, hardware companies like 3D printing are gaining traction.
  • Companies should seek to build relationships with funders long before they think they need the money. By engaging funders in the business early on, companies position themselves to call on them when the time is right.

Continue reading Tech Companies Attracting Out-of-Region Investors to North Carolina: An Interview with David Jones