Cocktails and Capital: An Inside Look at Florida’s Angel Investors
Here’s how one Florida angel group delights members in the Sunshine State.
How do Florida’s high net worth individuals help the next generation of Florida entrepreneurs? They form investment syndicates and collaborate in financing and guiding founders. Angel syndicates bring together the state’s elite executives, entrepreneurs, advisors, and investors both professionally and socially to achieve this mission.
“Angel investors have realized that early stage capital, while high risk, is high gain. It has the potential for both high economic return and equally high social impact,” says Ron Tarro, a New World Angels Board Member and Investment Committee Member. “Sure, angel investing’s motivation is a financial return, but that itself is unsatisfying. Real satisfaction is in seeing an entrepreneur overcome challenges and make the world a better place.”
Combining EXPERIENCES
Investment syndicates like New World Angels have established a reputation for astute investment choices. This happens because the group leverages the wide-ranging expertise of its members in making investment decisions and in helping guide its portfolio companies. Our members provide domain knowledge that collectively reduces the investment risk for members and for young entrepreneurs.
Tarro—who built his career in information technology and telecommunications — points to his inability to evaluate certain kinds of startups, such as bio-technology and medical technology companies. Interacting with professionals from those industries helps him make investment choices that he would not make independently.
“New World Angels is my trusted network, reducing my investment risk by pooling our collective knowledge regarding an investment,” says Tarro. “Many investors like myself have built businesses, but that work does not fully transcend industries or geographic markets. New World Angels broadens my investable space. It has illuminated interesting new technologies, entrepreneurs, their products, and their business models.”
DIVERSIFYING ASSETS
Early stage capital is its own asset class, explains Ron Tarro. “Angel investors are typically seeking high return diversification outside of market equities, bonds, and real estate. So they come to New World Angels seeking insight and support in early stage company investing. “New World Angels is a hands-on investment vehicle for people interested in participatory seed stage investment and growth,” Tarro says. New World Members gain curated exposure to entrepreneurs and emerging business models. The can participate in the screening of investments, due diligence, and into deal structure and negotiate. But the involvement need not end when the investment is made. The group lends its expertise to helping guide and grow our investments through advisory and board member capacities.
Meeting co-investors
Typically, New World Angels members gather for regular investment meetings. The group holds a monthly dinner meeting on the first Wednesday of every month. Three companies are presented to the group in the course of the evening. Modern times and troubles have expanded our use of unified communications platforms like Zoom. For the time being, the group plans to continue operating in that matter, but its members look forward to the day when they can once again collaborate in person.
“We try to stay personally connected. We invite our members from all over the state to Fort Lauderdale each February” says Jon Cole, New World Angels Board Member and Vice President. “We discuss our portfolio, our investment strategies, and the ongoing conduct of our working committees; a screening committee, a sourcing committee, a portfolio committee.
“We range across a broad geographical base and a broad array of social and ethnic backgrounds, so it's a fascinating group to hang out with,” says Cole. “It’s a social club with a larger purpose. We work together on committees and due-diligence teams, and we get to know and learn a lot from each other. It’s a great opportunity to do productive work with other successful people of diverse backgrounds and differing points of view.”
The group’s strong reputation, as well those of its members, also translates into opportunities outside of the group’s formal activities. Membership in the group almost guarantees the opening of doors in the larger Florida business community, simply by virtue of association.
Discovering smart people and next BIG THINGs
While a meeting of business executives conjures images of country clubs and cigar smoke, the only common denominator among New World Angels members is success in their careers and a shared interest in advancing the next “big thing”. The group seeks entrepreneurial minds and perspectives, welcoming the best and brightest from all cultures and from communities across Florida. We value entrepreneurs and entrepreneurship as a foundation for a better world and as our shared purpose.
“New World Angels has a position in the marketplace as a credible group of honest, serious and highly ethical individuals, so if you’re carrying a New World Angels card, you can go to a venture capital conference anywhere in Florida and show that card, and it will give you instant credibility,” says Cole. “Our reputation is valuable for enhancing networking, if you want to do right. We also provide opportunities for people to reach out beyond New World Angels into the larger venture capital community, because it’s a relationship business, where you’re known by the company you keep.”