Businessman says program a 'must' for area
By KAREN MIKOLS
About three dozen economic development representatives from western Kansas gathered Thursday to discuss investment options for startup businesses.
"If you're not playing the game, you'll get left out," said Brad Appelgarth, president of Prairie Fire Bioenergy Cooperative. "I think small communities need to organize. This is a must for every county in western Kansas."
The "must" is the Rural Kansas Angel Initiative, a program with the goal of pairing investors with a grassroots business.
"This is high risk, high reward," said Trish Bradsted, co-founder of Midwest Venture Alliance. "One in 10 deals is gonna be a home run."
The group is composed of accredited investors, whose net worth exceeds $1 million or with an income of more than $200,000 for the last two years. The annual membership fee is $250, and members meet quarterly to review business proposals.
"These people with wealth are investing their money somewhere. What we are trying to do is make sure they have the opportunity to invest it in their home state," Bradsted said. "We're trying to provide that opportunity for them."
But Sheryl Davis, regional director for the Kansas Small Business Development Center at Fort Hays State University, expressed concern about western investors being willing to invest in other areas of the state.
"Maybe my investor is investing because they know someone in their community," she said. "A lot of angel investors invest in the person -- in the kid who has a wonderful idea.
"What level of assurance can we give to my guy with the money that some guy from eastern Kansas won't come out and tell the kid how much better he could do if he moves to Lawrence? That is a very real concern in western Kansas."
Bradsted said there is no guarantee businesses won't move.
"But the objective is the entrepreneur to be where they need to be for the greatest success," she said. "The objective of the investors is not to relocate those folks."
Besides, the bottom line is the almighty dollar.
"These investors are investing for a return," said Steve Rabely, director of Network Kansas. "They want to invest in Kansas companies, and they want them to grow. But they want a big return at the end as well."
Bradsted said the next step is for communities to express interest.
"Our next step is getting in front of the investors," she said. "We will help you set up the meetings because we know how to engage the investors because we've done that for the community.
"You never know who might be interested, our job is to facilitate that interest."
For more information, visit www.mid westventure.com.