Second Nashville angel-investor network in the offing

Notwithstanding talk of teaming for investments, statewide network's debut means competition

Email | Print By Milt Capps

Rachel Qualls

NashvillePost.com has learned the Angel Network of Sumner County is rebranding itself as the Angel Capital Group and is creating an Angel Network of Nashville division.

The Nashville investor group will be the model for future Angel Capital Group divisions in Memphis and other Tennessee communities, according to Rachel Qualls, founder of the enterprise.

Qualls told NashvillePost.com this morning that two entrepreneurs, whom she declined to identify, will present to ANN members in April. Before then, on March 26, the new group will conduct a seminar on angel investing at Belmont University, in collaboration with the Kauffman Foundation and the Angel Capital Education Foundation.

Qualls said ACG's Nashville entry is intended to complement, rather than compete with other players, particularly Nashville Capital Network, which has launched a new angel-investment fund, as reported earlier today by NashvillePost.com.

Nonetheless, enlisting angels and securing sponsorships for events and other purposes and other activities will probably generate competition.

Asked to comment on ACG, NCN Executive Director Sid Chambless told NashvillePost.com his group is prepared to collaborate with ACG when doing so is helpful to NCN-affiliated angels. Qualls and Chambless said the two groups have not yet examined any deals together.

Qualls said she believes a statewide network will produce more deals, often in collaboration with other investor groups, and will have more influence. For example, she said that, collectively, investors might have more success in persuading state officials to create incentives for seed-capital investment, similar to programs she said already exist in 23 other states.

This morning, she provided NashvillePost.com a copy of ACG's tax-credit proposal, which she has previously shown only to some officials at state agencies.

As reported earlier, Qualls' Sumner County group announced in 2007 a number of milestones, including winning support from Vanderbilt; making angel investments in Pathfinder Therapeutics and Universal Robotics; and building its advisory board.

Qualls said this morning there are regional angel-capital networks similar to what she envisions ACG becoming, citing as an example St. Paul, Minn.-based RAIN Source Capital, which has 23 subordinate funds in a multi-state region.