82.1 F
San Fernando
Thursday, Mar 28, 2024

Maverick Angels Spreading Its Wings

Westlake Village-based Maverick Angels, a group of high net-worth individuals that invests in start-up and early stage companies, is spreading its investment philosophy in Southern California. The group launched two new chapters, one in the South Bay region of Los Angeles and another in Santa Barbara. Maverick founder, John Dilts, said the group is seizing the opportunity to expand because of a slowdown in venture capital and conventional bank financing. “We see a real void in the market because VCs and banks are retracting,” said Dilts. “We’re not looking for fire sales, but there are a lot of companies coming to us right now, and valuations are usually agreeable.” Maverick Angels specializes in early stage investing. Individuals or a group of angels typically provide $250,000 to $2 million in equity financing to businesses. Maverick Angels has 16 companies in its portfolio, said Dilts. The group also developed a “boot camp” for entrepreneurs. During the one day event, group members coach entrepreneurs on the ins and outs of being a scalable business including issues such as how to raise start-up capital, hone their business plans and pitch to investors. Companies from the boot camp apply to present at a monthly “Deal Line-Up.” Those who make the cut then present at the group’s monthly “Arena” meeting. Typically about half of the latter get funded, according to Dilts. “We’ve created a more efficient, distributed, flexible and streamlined approach to financing emerging growth companies and taking them to exit,” said Dilts, adding it’s a paradigm shift from companies making one presentation sans coaching to a venture capital firm or other group of equity investors. Maverick Angels also developed an online component that connects angel investors throughout the country. And Dilts said it recently launched a program to partner with large corporations looking to make strategic investments in emerging growth companies. Group members pay $3,000 per year and must commit to a certain level of investments. Entrepreneurs pay $495 per person for the boot camp. If they make the cut they pay an additional $1,000 to present at the Arena meeting. Mike Grimshaw is president of Maverick’s South Bay chapter, which officially launches on July 14. He is an angel investor, has worked with a number of high-tech companies, and runs a consulting and executive coaching practice. “What I see in the South Bay is a group of high net-worth individuals and no structured way for people to get involved in the entrepreneurial community and to have fun creating potential wealth,” said Grimshaw. Grimshaw said he enjoys Maverick’s philosophy of facilitating interplay between investors and entrepreneurs. Coaching companies before they present is a nurturing, fun and ethical way for people to diversify their portfolios, he said. Jerry Knotts is heading up the Santa Barbara chapter, which launched this month and will host its first meeting on July 23. He has worked as a corporate executive, worked with a variety of entrepreneurial programs in Southern California, and has been an angel investor for 10 years. “This is something that’s missing in Santa Barbara,” said Knotts. “Maverick Angels is a very organized program for investors and entrepreneurs.” He said opening a local chapter will reduce the amount of travel time for investors or potential investors who want to participate in Maverick Angels. There are also plenty of entrepreneurs in the region involved in industries such as high tech, renewable energy, agriculture and more. Boot camps and initial presentations take place in Westlake Village. Entrepreneurs will then present at the South Bay and Santa Barbara chapters. Meetings for the South Bay chapter will take place at The Bank of Palos Verdes. The July 23 meeting in Santa Barbara will be at the tech center on Gutierrez Street.

Featured Articles

Related Articles