Keiretsu Forum, one of the largest global networks of angel investors, recently hosted information sessions at The University of Alabama in Huntsville’s Innovation to Invention Center.
Founded in San Francisco in 2000, Keiretsu is planning to expand its operations into the Huntsville market, aiming to bridge the gap between founders and funders to support early-stage fundraising. The forum, which boasts over $1 billion invested in more than 1,400 startups, is known for its substantial investment sizes, typically ranging from $1 million to $5 million.
The firm currently has 35 chapters across nine North American regions.
Howard Lubert, Keiretsu Forum Mid-Atlantic Area President, represented the firm at the Huntsville meetings. Lubert has 37 years of experience in private equity, with the last 13 of those being with Keiretsu.
Lubert has named Dick Reeves to be an early-stage leader in Keiretsu’s Huntsville chapter.
“Dick Reeves is the real deal and the single most important factor in our coming to Huntsville,” Lubert told the Huntsville Business Journal. “His expertise and leadership have been instrumental in guiding our move.”
During the informational session, Reeves and Lubert discussed how they believed the forum would fit into Huntsville’s growing economy.
According to Lubert, 83% of angel investor groups write checks for roughly $100,000 to $250,000 at a time. These checks are frequently cut to startups looking for an initial infusion of capital.
Keiretsu comes in at a later point of the development process, when a larger investment is needed. The company describes its “sweet spot” as being from $1 million to $5 million, but they will fund a company that they have confidence in who is seeking less than $1 million.
According to Lubert, one challenge evident is the Huntsville ecosystem is a lack of investors who make those smaller, initial investments.
“The region is in need of support to bolster the funding side of its innovation ecosystem. This aligns perfectly with our mission to foster and support entrepreneurial growth,” said Lubert.
Lubert also welcomed the idea of a partnership between Keiretsu and UAH.
He believes there is an opportunity to teach graduate students, and exceptional undergraduate students, how to perform specific skills — such as due diligence — that are required by capital investment firms.
Lubert asserts that roughly just 7% of university faculty are keen to leave their tenure-track positions to enter the world of entrepreneurship. Keiretsu assists the other 93% of faculty innovators get their products to market by bringing in two types of professionals: serial entrepreneurs and subject matter experts.
Keiretsu’s entrance into the Huntsville market would ensure that a greater share of the area’s entrepreneurs and innovators could plant their businesses in Huntsville rather than relocating to Silicon Valley, Austin, or New York.
Lubert felt energized after Friday’s meeting.
“We were happy to welcome seven accredited angel investors who joined us to gain deeper insights into the Keiretsu Forum’s process and diverse portfolio companies. This level of participation mirrors the strong attendance we’ve seen at recent meetings in Dallas and Jacksonville, reflecting a growing interest in our successful model,” Lubert told the Huntsville Business Journal.
Huntsville-area innovators who are interested in connecting with Keiretsu should visit the firm’s regional website for the southeastern United States. Innovators are encouraged to read more under the “Entrepreneurs” tab on the page. Online applications are accepted through the site.
“Once we have the application the process will automatically begin and they can reach out to Dick (DReeves@KeiretsuForum.net) or Barry Etra, our Entrepreneur Services Director, (Betra@KeiretsuForum.net),” said Lubert.
Lubert anticipates that Keiretsu will have a working chapter in Huntsville by the fourth quarter of this year.
Cover image: Provided by Keiretsu Forum, San Francisco
