In 2001, Curtis Gunn pitched an Internet startup he co-founded to a relatively new group of private investors known as the Desert Angels.
The venture, dotucson.com, didn't win funding, but Gunn liked the "angel" concept and became an active Desert Angels member.
After a five-year stint as a professional bicycle racer, Gunn became chairman of the 70-member Desert Angels in January.
It's a comfortable seat for Gunn, 38, whose local ventures include RCG Productions, a one-man Web development and design firm and a former stake in Anthony's Cigar Emporium.
Q: Why is angel investing important?
A: It's an economic-development driver. We are helping to start, grow and finance early-stage startup companies in our own backyard.
It's also very important for entrepreneurs who have had a success to give back to the next generation of entrepreneurs.
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Q: What kinds of people join Desert Angels?
A: It started as a group of hard-core real estate guys, which made sense for Tucson then, but it's evolved into a very varied membership (including entrepreneurs, and principals in optics, biomedical and high-tech firms).
We also see a lot of retirees who aren't ready to retire.
A common refrain I'm hearing from new members now is, investors are feeling disenfranchised from Wall Street. . . . They want to be able to control their investment dollars more closely.
Q: What issues are facing angel investors?
A: Our concerns are twofold: We're not seeing opportunities to have a successful "exit event." Typically, these days it's through a merger or acquisition, and the IPO (initial public offering) market is dead right now. . . . In this type of investing, you need some sort of exit event so you can get a return and reinvest those dollars.
The other problem in Arizona is, in the last couple of years, there's not been a lot of venture capital activity.
Q: Do you see angel investing growing in Arizona and Tucson?
A: I do see it growing, for a bunch of reasons. We're a 10-year-old organization; we've invested in 43 companies, and I think we've done a very good job. We're beginning to communicate with groups in Phoenix and New Mexico; we're sharing deals; we're communicating, so there's a lot of positive momentum there. . . .
More locally, the new biotech park in Oro Valley and the one that's going to be south off of Campbell (Ave.), and new solar park at the (University of Arizona) tech park, there's a lot of momentum in terms of supporting entrepreneurs and startup companies.
And with all that and the (UA) Eller College (of Management) entrepreneurship program being as strong as it is, we're going to see more angel investing and more startup funding and, hopefully, more venture capital funding.
What is an angel investor?
A wealthy individual who invests in promising businesses in return for stock in the companies.
Contact David Wichner at dwichner@azstarnet.com