Buffalo, NY – Members of the Buffalo Angels have invested over $3.2 million in sixteen local companies since 2014. In addition to helping startups grow, the group itself has grown as it has added new members.
Buffalo Angels has two elements – an angel investor network and a member-managed fund. The fund, Buffalo Angels, LLC, raised $1.2 million from members in 2014 and to date has invested $625,000 in seven companies. Buffalo Angels members also have the option to make additional individual investments in the funded companies and have invested a total of $810,000 in the seven companies.
Individual Buffalo Angels members have also invested more than $1.85 million in nine other companies that they engaged with through the Buffalo Angels but which did not receive investment from the Buffalo Angels fund.
The Buffalo Angels investment portfolio includes companies in the software, materials, food, advanced manufacturing, medical device, energy and biotech industries and are all located in or have significant connections in Western New York.
The Buffalo Angels regularly collaborate and co-invest with other angel groups, individual investors, venture capital firms and accelerator programs such as LaunchNY and Z80Labs. The seven companies with investment through the fund have received more than $8 million from other investors in the same funding rounds. Investment from Buffalo Angels has also enabled companies to advance their businesses and obtain additional investment to fund further growth. To date five companies have leveraged investment from Buffalo Angels to raise an additional $6.3 million in follow-on investment.
The Buffalo Angels Network currently has sixty-nine members. All are Accredited Investors as defined by the Securities Exchange Commission. Membership has grown by almost 150% from twenty-eight members in early 2014.
Buffalo Angels meet monthly to hear presentations by pre-screened companies and engage in Q&A. If there is sufficient interest a volunteer team is formed do further due diligence and share their findings with the group at a future meeting. Members then have a period of days to determine whether or not to invest.
“Collaboration among the members is a great benefit,” according to Neil Arnold an experienced investor, retired CFO of a fortune 500 company and one of the Managers of Buffalo Angels, LLC. “The collective knowledge of the members helps us to make more informed decisions. Working as a group also gives members the ability to see a larger number of deals than they would if working alone and shares the effort and time needed to conduct due diligence.”
“Investing through Buffalo Angels also provides the opportunity to spread risk by investing a relatively small amount of money in a number of companies over time,” said Dr. Harvey Arbesman, another Manager of the fund who is an experienced investor and medical consultant. “It also allows one to assist young, Buffalo-based companies that will help grow the Western New York economy.”
“There is an engaging dynamic at our meetings” said Jack McGowan, Executive Director of Buffalo Angels. “Members are learning about exciting new companies and truly enjoy the discussion and interaction with fellow investors.”
Buffalo Angels meetings are by invitation only. Accredited investors that would like to learn more about the Buffalo Angels should contact Jack McGowan at 716-636-3626 or firstname.lastname@example.org.