Investment group aids local company, STOC looking to help area projects
3/6/2008 (Source: Press & Sun Bulletin)

The STOC Angel Investment Network is staying close to home and investing in companies with local roots. The group, which seeks to provide financing to early-stage companies, recently announced that some of its members invested $200,000 in Threadsmith of Vestal, helping the custom-embroidery company attract an additional $1 million in venture capital from other sources to expand its business and hire about 12 employees, including some software engineers.

Angel funding can help bring burgeoning technology projects to the table for additional investment, Threadsmith President David Goldman said.

STOC Angel Investment Network founder Lawrence J. Schorr and two undisclosed members of the group made the initial investment in Threadsmith that allowed it to grow to a size attractive to venture capitalists.

Last month, Threadsmith announced it received $1 million in venture capital from High Peaks Venture Partners, Advantage Capital Partners and the New York State Common Retirement Fund.

"The initial help STOC provided with our investor presentation and the contacts we made through STOC were invaluable during our early stage growth," Goldman said in a written statement.

Angel investment is critical to the region's resurgence, Schorr said.

The STOC Angel Investment Network formed six months ago and is composed of more than 20 "high net worth" individuals. The group meets monthly to evaluate local business investment opportunities.

Binghamton University staff members have helped connect the network with pre-incubator companies.

The Southern Tier Opportunity Coalition, a nonprofit private sector and academic partnership to promote the region's economic growth, helped form the angel network but will not be an investor nor receive any fees should any angels invest in any businesses.

STOC has said that the angel-level funding is typically $100,000 to $1 million. Candidates will typically be from technology-related industries, or be a value-added manufacturing or service company that will ultimately generate jobs in the region.

Candidates also should have a well-developed, written business plan, management team and some level of sales and/or intellectual property protection before presenting to the network and considering the possibility of a funding relationship with any investors.

Investors typically receive some type of equity stake in the business venture, such as stock ownership in return for their investment, STOC has said.

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