Allos Ventures: Angel Funding Helping Entrepreneurs Find Investors

Ohio-based investment firm Allos Ventures focuses on early-stage software and business services companies, working to expand capital provided by angel investors. Investing in two companies per year, Allos looks for entrepreneurs who demonstrate expertise within their industry – especially those in big markets with hot selling products.

Allos Ventures has been a regular attendee of the Michigan Growth Capital Symposium since 2010. The firm focuses its efforts in the Midwest, especially within the state of Michigan. “The Michigan Growth Capital Symposium has been a great help developing the entrepreneurial ecosystem. It is one of the key events that brings everyone together,” said Director Dov Rosenberg. “We enjoy seeing everyone in one place. It’s sort of a kickstart to find new companies and co-investors to make new relations for the year.”

Rosenberg notes that many new and promising healthcare companies have been presenting at the Symposium; in addition, he has been pleased to see a lot of B2B and enterprise software companies over the last few years. “The level of sophistication of software companies is improving,” he said. “I would attribute that to local angel funding helping companies be prepared for investors.”

Allos Ventures sponsors events like the MGCS to show the company’s commitment to the entrepreneurial ecosystem in the Midwest. Allos representatives also travel to Michigan on a regular basis. “Michigan is a very important part of the region,” said Rosenberg. “It’s nice when we are up in Michigan for two or three days during the MGCS to meet far more people than we could if we drove to offices. We also get a chance to meet people we did not know existed.”

Allos Ventures Finds Unique Value in Early Stage Investment

Over the past twelve years, Indianapolis-based Allos Ventures has found success targeting early stage technology companies. The firm’s portfolio includes a diverse array of businesses, including AssureRx Health, BidPal Network, Scale Computing and WebLink. Managing Director John McIlwraith said early-stage technology companies have proven to be a good bet for Allos. “We believe the early stage sector is greatly underserved due to the shortage of early stage venture capital in the region, and the growing number of angel-backed and other companies approaching the stage at which they will seek to raise their first round of institutional venture capital,” he said.

The firm’s second fund, Allos II, will invest in ten to twelve companies, and will follow the four guideposts of its first fund: providing hands-on leadership and company-building support; investment in first institutional VC rounds of companies with early revenue; focus in high-growth sectors intersecting with the principals’ experience (including software, advanced manufacturing/materials, and medical technology); and targeting companies within a four hour drive of either of its offices in Indianapolis and Cincinnati.Michigan– fromGrand RapidstoDetroit– is also an area of focus for Allos based on its level of company-building activity, and the firm’s successful investments in BlueGill Technologies, Sircon, and Health Care Solutions.

McIlwraith, a founding member of the Michigan Venture Capital Association Board of Directors, has been active inMichigansince 1997. He notes that early-stage companies provide value to theMidwest, through the potential for rapid growth, job creation, and an attractive rate of return for investors.  Additionally, they help develop a rich talent pool. “Successful early-stage companies will certainly create jobs in the region,” he said, “but they also will create the next generation of innovators and executives who will start companies and/or invest as angel investors in other start-ups in the region. These individuals will serve as mentors to the founders of future companies, and will help produce the kind of momentum that is critical to building a vibrant entrepreneurial ecosystem.”

Allos is a sponsor of this year’s Michigan Growth Capital Symposium, and has been involved since the event’s inception. Its principals have served as panelists, and regularly assist in evaluation of business plans for the selection process. “It is one of the best conferences of its type in the country, and is a valuable source of investment and networking opportunities,” said McIlwraith.