NEWBERRY — Working with entrepreneurs and helping them be successful. That is what Charlie Banks said he enjoys most about his position as director for the South Carolina Angel Network.
Originally from Camden, Banks attended school at Newberry College and never left the area. Banks has been in Newberry since 2001, and his wife Cayci has lived in Newberry since 1999.
“Newberry just feels like home,” Banks said.
The South Carolina Angel Network is an umbrella organization, which has affiliate angel groups that are community based across North Carolina and South Carolina.
Banks said the affiliate groups included Asheville Angels, Anderson Angels, Spartanburg Angels, Upstate Carolina Angel Network (UCAN), Capital Angels in the Midlands, Low Country Angel Network, the Central Savannah River Angels for Aiken and Augusta and the Coastal Empire Angels for the Hilton Head or Bluffton area.
“We should be launching a group in Myrtle Beach later this year,” Banks said. “We’re in talks with Rock Hill as well.”
Each one of the investor groups are separate in nature, Banks said, but are really a part of the SCAN network as a whole. Banks said it was important to them to have “local flavor” to give folks the opportunity to network with their peers and invest in these companies.
With his location in Newberry, Banks is the managing director for the affiliate group Capital Angels of the Midlands area.
Banks describes the angel investors as similar to those on the television show, SharkTank. What that show has done, Banks said, is made people aware of the asset class of early stage investing and start-up companies.
“In South Carolina, we don’t have a capital problem, rather access to it,” Banks said. “Historically it has been tough to access that wealth.”
By being an angel investor, Banks said it provides high-network individuals an avenue to make investments in those kinds of companies.
Companies that Capital Angels typically invest in are those that are in the early stages, but past conceptual stage, those that have gotten some customer validation, have some revenue, but are using the investors’ dollars to grow their company.
The Capital Angels accredited investors are individuals with a net worth of $1 million minus the value of their personal residence or those that make between $200,000 and $300,000 a per year combined with their spouse.
“This is our target audience,” Banks said.
Banks said membership in Capital Angels is more than just an investment in capital, but rather an investment of knowledge and business acumen to support local start-ups and the community.
How it began
Having both graduated from Newberry College, both Banks and his wife said they knew they wanted to start a company and be a part of the community. Together, they have two children — Lucas, 5, and McLaine, 2.
The South Carolina Angel Network really began with the affiliate group, UCAN, in Greenville.
“We got a group of guys together and really wanted to help local companies be sustainable,” Banks said.
A group of local philanthropists and business leaders formed the group and Matt Dunbar, Banks’ partner, was recruited. He has spent the past seven years with Banks building the process and benchmarking what they’ve now expanded across the state in early state capital formation.
A third partner, Paul Clark, was brought in for his deep background in mergers and acquisitions.
With a background in marketing and public relations, Cayci said she began the process to help the group market itself more.
Banks said their job is to find investors, explain to them what SCAN does and educate them on the benefits of investing in start-up companies.
When a company comes to SCAN looking for funding, Banks said they are taken through a rigorous process before investors indicate which companies they want to take to a full-member meeting, which is what Banks describes as the “SharkTank” atmosphere.
“They’ll make their pitch, answer questions, it’s tough,” Banks said. “But it gives us an indication of the founder and his ability to execute on a business plan.”
Assuming the company presents well, industry experts are then located to put a team together to dive into the company setting up a financial model, experience and projections to paint a picture of what the company looks like.
“A diligence report is then presented to investors,” Banks said. “But there is no obligation by individual members to make an investment.”
Companies that SCAN invests in come from all over the Southeast, Banks said. While getting people to invest in South Carolina companies is the main goal, for groups to be sustainable, Banks said they have to look outside for companies to give them a good return on investment.
“About 85 percent of our business stays in South Carolina,” Banks said. “I spend all day, every day talking to entrepreneurs and finding new opportunities and trying to figure out a way to leverage a network of investors to help them be successful.”
Banks said there are opportunities to get involved by joining the Capital Angels group for the area, which comes with a little more involvement, including meetings and choosing the opportunity to invest. Or there is also a fund where people can invest money without the obligation of meetings.
“We communicate a great deal as to what their investment is in,” Banks said. “They have access to an online deal platform that gives updates on where they are in current and past investments, as well as a pipeline of companies currently being considered.”
Joe Trainor of Stokes Trainor in Newberry is one of their biggest supporters, Banks said.
“I liked the idea of being involved with people who were willing to help entrepreneurs get their ideas from the drawing board to a successful business that hopefully will end up employing a number of people in surrounding communities as well as our own,” Trainor said.
For more information, visit www.scangelnetwork.com.