A Joplin investor has teamed up with the Joplin Area Chamber of Commerce to launch the Joplin Angel Network - a free Internet-based service that aims to connect entrepreneurs with investors.
While many cities including Springfield have angel investing networks, Steve Russell, director of the Joseph Newman Innovation Center and an organizer of the network, said Joplin's online-only service might be the first of its kind.
"It seems to be a new wave," Russell said. "It's like, nobody knew what Twitter and Facebook were a few years ago, and nobody probably thought about this. I don't know that there's another one like it."
The service is live at www.joplinangelnetwork.com and already lists equity investors who have an interest in early stage and growth-focused tri-state area companies.
"I've already talked to three or four businesses who have executive summaries ready to post," said Toby Teeter, principal of Teeter Capital Partners LLC and the driving force behind the site.
Teeter said entrepreneurs often have great ideas but lack the resources to bring them to life, and they're often unable to secure bank loans. The intention of the Joplin Angel Network is to become a viable alternative to bank loans, Teeter said.
Entrepreneurs can register online and post their business plans. Meanwhile, investors - who must be accredited as defined by the Securities Act of 1933 - can register and browse the posted plans.
Interested investors can communicate anonymously while deciding to make a move.
The network also is open to proposals from businesses ready to expand but without traditional financing lined up, Teeter said.
"The only avenue they have is to find equity investing," Teeter said. "There hasn't been a place to pull that off."
As an investor, Teeter said he has been flooded with business plans from hopeful entrepreneurs. This site will allow him and other potential investors to look through business plans and explore only those that appeal to them.
"The process is inefficient without this kind of marketplace," he added.
Teeter said he started planning the angel network project almost as soon as he moved to Joplin about five years ago. He said that while many larger cities have formalized angel networks, which are handled like hedge funds, the Joplin network needed something more flexible and easy to manage for now.
"(The Web site) is appropriate for this market," Teeter said. "This is simply the most efficient way to connect entrepreneurs with investors."
An online-only angel network, Teeter said, requires minimal oversight. Joplin Angel Network is managed by a steering committee consisting of Teeter and Russell, as well as Rob O'Brian, president of the Joplin Area Chamber of Commerce.
Russell said the chamber decided to join Teeter on the project because it fit with its mission.
"This is another step in helping the Joplin region develop that entrepreneurial spirit," Russell said.
Russell said he'd been researching angel investing for some time. Teeter's idea, combined with interest from a local attorney who wanted to provide such a service to his clients, provided the final push the Joplin Angel Network needed to get off the ground.
Damien Hallacy, who recently opened Cutting Loose Graphics in Joplin, said he had trouble securing a loan to start his business. He said having more funding options such as Joplin Angel Network is always good for those who are trying to launch businesses.
"I always try to look at all (the) options," Hallacy said. "(In) 'The Beverly Hillbillies,' that banker, Mr. Drysdale, used to kiss butt. But nowadays, it's a different attitude at the bank. It's hard to get what you want."
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
