Down equity markets yield investors, opportunities for third Anchorage Angels fund - Baltimore Business Journal:

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And, he said, this might be one of the most promising periodwsfor early-stage investment group such as his Anchorages Angels. Anchorage Angels recentlh closed itsthird fund, Anchorage Angelsz III LLC, said Chapman, who is managing member of the 10-year-old private investment fund. Althoughu Chapman declined to give specifics, he described Anchorage Angels III as the largest of the three funds createdsince 2000, with well over $1 million raised. Chapman said that although there are no immediatse plans for anadditional series, the fund “haes flexibility to increase its size.
” Tough but big opportunities Anchorag Angels III already has investexd in six companies, which he declined to The new fund will invest acrosz the United States, Chapman said. Anchorage Angels’ typical maximum investment isabout $150,000o to limit the exposure in individualk companies, he said. But it has invested as much as $200,00 in a single company through multiple funding roundz and as littleas $25,000. So how hard is it to get investorz to fork over perhaps hundreds of thousandx of dollars during what might be the depths of the worsty downturnsince 1929? Tough, Chapmanj said. “It’s extremely difficult to raise moneg inthis market,” he said.
It takes with endless meetingsand negotiations, Chapman said. “But we have a We have a track record of making money in realltycrummy environments.” The 2009 investing environment is “the of when Anchorage Angels raised its first money in he said. During that go-go environment, with the possibility of takingbcompanies public, there were lots of deals, and all them were Chapman said. That is, there was so much investoer money chasing deals that the terms were not as favorablefor “What you see (now) are very interesting tech playds at very interesting valuations,” he said.
Valuations are lower, dealsz are plentiful and management teams are better and more he said. Another difference from past years is that moreinvestorws — many of whom have become disillusionedd with public-equity markets — are comingy to Anchorage Angels to learn the private-capitak business. “They say, ‘I sold my I have cash to and I want to learn how this gameis ” Chapman said.
There’s a wealtn of opportunity right now for entrepreneursin early-stage including in health care and said Sean O’Leary, co-founder and CEO of Louisville-basec Genscape tracks utility energy outputy for brokers, and it’s one of the companies in whic h Anchorage Angels invested. The recession has meant that a lot of professionales havebeen “forced to thinkl about what to do with theit lives, and they’re talking risks they wouldn’gt ordinarily be taking,” starting new said O’Leary, who also is a currentg Anchorage Angels investor.