Are you an investor looking to fund local start ups? This seminar is for you

If you’re a local investor looking to fund a start up company along the Grand Strand, Wednesday’s Angel Network meeting is for you.

The South Carolina Angel Network (SCAN) will be hosting a seminar for accredited investors on the intricacies associated with investing in early stage companies. SCAN is a South Carolina-based organization that develops and manages community-based angel groups that invest in start-up companies.

SCAN has nine “angel” groups around the Carolinas, but the group is looking to start something along the Grand Strand “because of the old and new wealth in the area,” said Charlie Banks, director.

“The area has an outstanding standard of living, and people are moving here that want to invest,” Banks said.

Banks said the group started looking to start a Grand Strand network because he received several calls from locals wanting to invest but not knowing where to start. Instead of directing them to the closest meeting – SCAN has groups in Anderson, Charleston and Asheville – the group decided to hold an event to gauge local interest, he said.

SCAN is partnering with the Grand Strand Technology Council on Wednesday to co-host the second “Pitch Night” for local investors, which is the area’s version of ABC’s hit show “Shark Tank.”

Before the event, SCAN is hosting a seminar for investors at 4 p.m. Wednesday at Travinia’s Italian Restaurant, 4011 Deville St., Myrtle Beach. You do not have to be an accredited investor to attend the event. To register, visit http://www.gstechcouncil.org/event_signups/shape/504.html.

SCAN has invested a little over $16 million in 47 companies, ranging from medical technology to manufacturing, Banks said. The group rarely works with lifestyle companies – such as restaurants and retail – but is “industry agnostic.”

“We invest in a pretty broad spectrum of companies,” Banks said. “We’re looking for a company that can grow relatively quickly, to the point where there’s some kind of activity where the investors can be repaid.”

Jason Greene, president of the Grand Strand Tech Council, said the addition of SCAN’s seminar will help build up Startup.SC Pitch Night, which has more than 150 people registered.

“We are really excited to be adding an investment seminar to the evening’s agenda,” Greene said.

Investors must be accredited by the U.S. Securities and Exchange Commission, which requires investors have $1 million in net worth, at least $200,000 in annual income or $300,000 joint income with a spouse. Once accredited, however, Angel Network investors can fund any new company featured with SCAN, no matter where they’re located, Banks said.

One such company, PharmRight Corp. in Charleston, got its initial $750,000 from SCAN “angels” and has gotten an additional $2.4 million offering for expansion, according to Randy Parker of PharmRight.

“We really appreciate the professionalism of the SCAN management team and the access to a wide range of investors in the Carolinas,” Parker said. “SCAN's ability to increase their investment via matching from the Palmetto Angel Fund is also attractive to start-ups like our company.”

SCAN has about 250 members with all kinds of backgrounds, which helps mitigate the investment risk. Because funding start-ups is high risk, having a group of other investors fund the project “makes things more comfortable,” Banks said.

“If you don’t have experience in medical technology, someone else does,” Banks said. “So you get viewpoints from a myriad of folks.”

To learn more about SCAN, visit its website at http://www.scangelnetwork.com/.

This story was originally published January 26, 2016 at 4:39 PM with the headline "Are you an investor looking to fund local start ups? This seminar is for you."