Talking to angels: Investor relations service for startups to launch in Austin

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AngelSpan Inc. CEO Joe Milam

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Christopher Calnan

Staff Writer- Austin Business Journal

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A California-based company that provides investor relations services to startups plans to officially mark its launch in Austin next month.

AngelSpan Inc., which was established in January, is scheduled to host its launch event on Nov. 4 in the Den of the W Hotel downtown.

The two-employee company has been enlisted by 15 startups, six of which are based in Austin. The clients pay $600 per month for the AngelSpan to issue news releases and monthly updates to stakeholders and investors, CEO Joe Milam said.

"The goal is engagement," he said. "Angel investors need an emotional commitment to see a company succeed so we provide consistent communications so angels can participate."

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The service is best suited to companies with more that $750,000 in investment capital and a need to regularly communicate to 30-40 investors and stakeholders, Milam said.

It's not the only such business in Central Texas.

Lago Vista-based SmallCapVoice.com Inc. markets an investor relations service to small companies as a way to help them remain compliant with securities regulators while maintaining shareholder communication.

The company, founded and operated by entrepreneur Stuart Smith, uses tools such as a daily newsletter combined with audio interviews and financial news releases using search engine optimization to get the word out about client updates. More importantly, it's an approach designed to keep clients clear of regulatory violations, Smith has said.

At AngelSpan, Milam said he founded in California an investor relations firm called Angel Legacy that he operated from 2000 to 2003. He got the idea to restart it as AngelSpan after meeting with Austin Technology Incubator Director Isaac Barchas.

"Frankly, I was surprised the need is as still as acute as it is from speaking with him," Milam said. "Angel investors are still the same. The psychology of that profile is consistent."

Christopher Calnan covers technology, finance and clean energy for the Austin Business Journal. Subscribe to the Energy Inc. newsletter