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ACE-Net Headed In New Directions
By
Frank Szivos
Editor
Angel Investor News
Access
to Capital Electronic Network, better known as
ACE-Net, has a new face and new direction as it
evolves from a government-based national
marketplace for investors to a private
non-profit service.
Dan Mitchell, ACE-Net Executive Director, sees
the transition as a dramatic step forward in the
growth of the organization that has service
operators in 48 states. The U.S. Small Business
Administration Office of Advocacy launched
ACE-Net in 1995 and nurtured it until it became
self-sufficient. Mitchell says privatizing
ACE-Net is a natural step in the evolution of
the organization.
"The privatization of ACE-Net expands the
potential of the organization," Mitchell
said. "We have more sponsorship
opportunities that will allow us to offer more
programs and have access to funds to put people
together to make deals."
Despite an unsettled economy, Mitchell thinks
the time is ripe for both
investors and entrepreneurs and sees ACE-Net
playing a lead role in exposing accredited
private investors to entrepreneurs.
"This is an ideal time for investing;
probably better than before the dot.com
boom," Mitchell said. "Investors are
more savvy today. They know what they're looking for; and are
less likely to jump on the bandwagon."
In fact, angels and Venture Capitalists loaned
their experience in helping to develop ACE-Net
to promote the access to seed and startup
capital for entrepreneurs. ACE-Net's role has
become more critical since many VCs have formed
large partnerships that typically invest in more
established companies in the neighborhood of $5
million and above. Angles have stepped in to
seed startups with investments commonly between
$250,000 and $5 million.
In Mitchell's opinion, there are enough
accredited angel investors or investor clubs out
there who are shopping for good products and
experienced management teams in start up
companies. If entrepreneurs can build solid
business plans, investors will come.
"A good idea without a solid plan and
experienced management team probably won't work.
It's different than in the past," Mitchell
said. "You need the entire package to draw
investors."
That's where the new ACE-Net steps in to build
stronger links between angel investors and
entrepreneurs. The secure ACE-Net Web site,
developed by the University of New Hampshire's
Whittemore School of Business and Economics,
offers helpful tools and information for ACE-Net
members. The site (www.ace-net.org) is easy to
navigate and offers cutting-edge information.
ACE-Net also plans to service its members in the
real world. This fall, ACE-Net will introduce a
national forum series for both investors and
entrepreneurs with the first one scheduled for
the Boston area. The series will cover timely
topics, such as due diligence, legal issues for
start-up companies, investment strategies,
accounting procedures and regulations and a
primer on writing business plans that sell.
In addition, ACE-Net is sponsoring a monthly
newsletter for members at no charge. Members
only need to sign up for the newsletter that
features timely articles on investment issues,
investment opportunities, angel profiles, guest
columns from investment experts, book reviews
and listings of upcoming forums of interest for
entrepreneurs and angels. The newsletter is loaded with the latest
information to make for a quick and easy read.
"We're excited about the forum series and
newsletter," Mitchell said. "It gives
us the tools to serve our members better.
There's a definite need for information and
education that we can deliver nationally. The
newsletter keeps us in touch and sets up a
regular exchange between ACE-Net and our
members."
However, don't mistake ACE-Net for another
cyber-based investment site, Mitchell said.
There are several features that set it apart:
1. ACE-Net encourages the creation of a national
marketplace for
investors to find and invest in equity
offerings by small companies.
2. ACE-Net requires that all small companies
listed on its site be in
full compliance with the appropriate
filing and registration
requirements
of federal and state securities and regulations.
3.
There are no fees or commissions. ACE-Net
charges a nominal fee
to
cover administrative costs, but it's not related
to the outcome or
completion
of any transaction resulting from company's
listing on
the
site.
"Our
goal is to provide more services for our
members," Mitchell said. "We want to
become the premier clearing house of startup and
high growth companies for accredited investors.
Over the last five years, we developed a solid
base, now we can take it to a higher level. We
want to take start ups through the entire
financing stages to IPOs or mergers. We’re
ready to do that now."
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