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Angels Wait in the Wings to Bless New Businesses: Research Foundation Matches Imagination With Money

Posted on: Thursday, 16 February 2006, 09:00 CST

By Candace Goforth, The Akron Beacon Journal, Ohio

Feb. 16--The University of Akron Research Foundation is leading a new initiative to connect local entrepreneurs and their innovations to the investors who might help them flourish -- and stay in Akron.

The ARCHAngels (Akron Regional Change Angels) Network, a collaboration of the university's research foundation and area development groups, screens prospective startups and presents those found worthy to "angel" investors.

Three entrepreneurs -- a designer and maker of medical simulation and training devices, an operator of retail-based medical clinics and a developer of technology that prevents impaired drivers from starting their vehicles -- made their debut before about 60 investors at the organization's event Wednesday.

Before the event, Elaine Futrell said she had been looking for investors for her vehicle ignition immobilizer company, Gauntlet Technology Systems, for months before she learned about the ARCHAngels Network.

"To get this kind of opportunity, with this many investors in one room, is phenomenal," she said.

Behind the ARCHAngels project are Gordon Schorr and Barry Rosenbaum. The two retired Akron executives said they agreed to work with the UA Research Foundation as unpaid senior fellows to help solidify Akron as a technology hub.

"We want to make change, and this is a wonderful way to do that," said Schorr, retired marketing manager at Goodyear Tire & Rubber Co.'s chemical division.

Enthusiastic response

Since it was launched last fall, ARCHAngels has met with enthusiasm from nearly every sector, Rosenbaum said.

"This is almost a cultural thing," said Rosenbaum, retired director of technology at Omnova Solutions. "We have an array of leaders from the university, from the investment community and local companies, saying, `We can do that. We can work together to create value and create wealth in Akron.' "

The research foundation is the arm of the University of Akron charged with helping to take the work of students and faculty to market. Unlike traditional technology transfer programs that may focus solely on the efforts of students and faculty, the UA-backed ARCHAngels also will help shepherd the innovation of promising companies outside the university.

That approach makes sense, considering the university's mission is to become an economic driver in the region, said George Newkome, UA's vice president of research and graduate school dean.

"Our faculty and students are the community," Newkome said. "It is our obligation to help the community grow. That's part of the educational process."

And, Newkome said, there's always the possibility that helping unaffiliated ventures will result in a more direct payoff for the university.

"If research is to be done to make a new product that these new companies need, I'm hoping they will look at the University of Akron and its capabilities to help when the need comes up," he said.

Completely local

Unlike other regional economic development efforts, ARCHAngels is centered solely on the Akron area, said Tom Barratt, a business consultant who works with investors and entrepreneurs. "The size of this community is very nimble and more responsive," said Barratt, who contributes to the ARCHAngels leadership team along with representatives from JumpStart, the Greater Akron Chamber, BioEnterprise, Summa Enterprise Group and the city of Akron.

"There are a lot of angels (investors) in the Akron area, and they get pulled by things in Cleveland. These angels want to make money on (Akron) opportunities, but they haven't really had their own forum to look at companies in this area."

Many university-based angel groups revolve around alumni investors. Rosenbaum said ARCHAngels does not have such restrictions for its investors, whom he considers to be the customers in the equation.

Those customers expect quality, and that is why screening the entrepreneurs is so crucial, Rosenbaum said.

He said the different groups involved in ARCHAngels bring diverse expertise to the initiative. For example, Summa Enterprise Group and BioEnterprise help find and screen biotechnology startups.

Donald F. Kuratko, executive director of the National Consortium of Entrepreneurial Centers, said that vetting is key to ARCHAngels' chances for success.

"If you present bad deals or poor presenters to the angels, you'll lose your network right away," said Kuratko, who also holds the Jack M. Gill Chair of Entrepreneurship at Indiana University, Bloomington. "It sounds like Akron is doing the right things."

Candace Goforth can be reached at 330-996-3175 or cgoforth@thebeaconjournal.com

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Copyright (c) 2006, The Akron Beacon Journal, Ohio

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Source: Akron Beacon Journal (Akron, Ohio)

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