Angels are the answer for most entrepreneurs. Investment angels tend to be parochial. They keep their money in small businesses close to home largely because of their local knowledge and easy access to the information needed to review business plans. There is a great community feeling built into universities. We think people will feel more comfortable investing in a company run by a graduate from the same school than a company that might be 50 miles from their house.
Colleges are a natural place to look for potential breakthroughs.
The technology that led to Netscape Communications' Web browser emerged at the University of Illinois, for example. Current students aren't providing the bulk of ideas at UniversityAngels, though. About two-thirds of the business plans posted at UniversityAngels come from alumni. Robert Hanson, a Cody, Wyo. resident who invested in Galileo, said UniversityAngels is ideal for people like him who want a piece of the action without having to forsake their chosen rural lifestyle. It puts me into the deal flow.