The Angels Are Watching

AJP: What is Private Capital Network?
DP: An association of SEC Accredited Investors who are interested in investing in seed and early stage companies.

AJP: Why did you start Private Capital Network?
DP: Private Capital Network (PCN) was started initially to fund early stage companies from all industries, not just one.

AJP: What makes your Angel group different then all the others out there?
DP: We look at opportunities from all sectors of the economy. Additionally, we have become familiar in working with foreign governments and their stock exchanges. Investment opportunities are blind to national boundaries.

AJP: Do you invest as a group or individually?
DP: Members can invest as a group among themselves or as individuals. PCN Management does not participate in either nor do we become involved in Term Sheets or any negotiations.

AJP: What is your typical meeting like?
DP: Meetings consist of presentations from selected companies (3 normally), and sometimes a guest speaker. After the presentations and a Q&A period, we ask the presenters to leave the room. After which, we discuss openly the positive and negative aspects of each opportunity. To the benefit of the companies, PCN provides them with written copies of this feedback to help them improve and/or fine tune their presentation. They are also provided a contact list of those members who are interested moving forward with the company. If members truly like the deal, we will form a due diligence committee (3-5 members) to dig further into their data and the company.

AJP: What is your due diligence process?
DP: The process begins with the formation of the DD committee. DD documents are given to the company to complete and return. The head of the committee will guide the company personnel through the processes offering advice and guidance where appropriate. The entire process takes between 4-6 weeks. The resulting documents are made available to the membership.

AJP: Any industry focus?
DP: Money does not care what industry it is made in. Some members have a special focus others do not. We all share our ideas and opinions about a deal then act as our intellect directs us.

AJP: How involved is your group with operations of investment companies?
DP: I have viewed three levels of involvement by our members. Some are simply investors who bring cash and their connections to a company. Others, who came from the upper levels of large corporations, offer their expertise. While some, are serial entrepreneurs who want to become deeply involved in the management and growth of the companies they invest in. All play their role in helping these companies to grow and succeed.

AJP: Do you plan to grow geographically?
DP: At present, we are focused only on the Southern California region. Perhaps, if the right individual presented his or herself, we will expand to other regions of the country.

AJP: How active have you been in the last 12 months?
DP: In 2007, we viewed 25 company presentations in 9 months. Of those, 3 have been funded to a total of $9.6 million. Two more are still pending so we can not comment on them yet.

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