By ED MERRIMAN

Baker City Herald

Wendy Dickison came to Thursday’s PubTalk looking for $200,000 to expand her business making lifelike baby dolls.

Lisa Chambers sought $50,000 to market vegan butter.

And former Halfway Mayor Gordon Kaesemeyer pitched a vapor hydrogen injection system he invented to boost gas mileage.

Those business funding pitches were part of the agenda at a Thursday evening PubTalk held at Mad Matilda’s in Baker City.

More than 35 people attended the event, including local entrepreneurs and regional economic development officials who came to meet and listen to a panel of andquot;angel investorsandquot; from Boise, Hood River and Portland.

Panel members were: Eric Pozzo, Oregon Angel Fund manager and chairman of Oregon Entrepreneurs Network; Neal Price, Gorge Angel Investment Network; Jim Noonan; OEN investor services/ Pivot Point Capital LLC; and Kevin Learned, President, Boise Angel Alliance.

The panelists discussed the dynamics of how angel funds work, from both the entrepreneur and investor perspectives.

andquot;All of these panel members have founded companies and went through some of the same trials and tribulations we have all gone through,andquot; said Jake Jacobs, who serves as an economic development consultant with Baker County and with the Oregon Entrepreneurs Network, which organized Thursday’s PubTalk.

Family and friends are often the first source of financing for a startup business, and banks and venture capitalists generally provide funding for established businesses seeking to grow or branch out.

Learned said angel investors fill a financing gap for startup businesses when their dream becomes too big for friends and family to to carry, but is not large enough to attract venture capitalists, and lacks the assets to qualify for bank financing.

While venture capitalists generally invest several million dollars, angel investors are more likely to invest several thousand. However, Learned said some angel investor groups may have 25 to 50 members, and if each member puts in $5,000, that can add up to a sizeable chunk of change.

andquot;Queen Isabella was the first Angel investor when she financed Christopher Columbus to cross the Atlantic Ocean to discover America,andquot; Learned said.

However, contrary to the angelic connotation implied by the name, Learned said angel investors expect a return andquot;three to ten times their investmentandquot; in fledgling companies within three to five years.

andquot;Depending on the amount of the investment, we’ll also want a seat on the board,andquot; Learned said.

Noonan talked about the Angel Oregon competition in Portland where entrepreneurs submit their business ideas and compete for cash prizes that can help launch their entrepreneurial dreams.

andquot;Last year’s winners took home $240,000,andquot; Noonan said.

Three of the most active angel investor groups Noonan mentioned that Baker City investors or entrepreneurs could hook up with include the Women’s INvestment Network, the Oregon Angel Network and the Oregon Angel Fund.

Pozzo said volunteers with the Oregon Entrepreneurs Network help angel investors learn how to andquot;kick the tiresandquot; and review financial statements on startup businesses seeking their financial help, which helps them separate the wheat from the chaff, so to speak.

OAN brings investors and entrepreneurs together, and its volunteer members lend their business experience, advice and counseling, as well as funding to the right company or individual.

Those mentoring services include helping entrepreneurs develop a business plan, a PowerPoint presentation to pitch their business ideas, and other services, such as identifying markets and distribution strategies.

As an example of how Baker City investors could come together to start an angel investors network, Price described how the Gorge Angel Network started recently with 16 people who each put up $5,000 for an $80,000 investment pool, which has since grown to $90,000 in the first year.

andquot;It’s fun. It’s a very supportive group of people in the Boise Angel Alliance,andquot; said Learned, adding that every investor is required to certify that they have a net worth of at least $1 million to be eligible to join that angel investor group.

Panel members said Baker City investors and entrepreneurs are welcome to join or submit business ideas to their organizations until Baker City establishes its own network of angel investors.

Tom Bootsma came to the PubTalk to hear what the angel investors had to say about investing in farm equipment manufacturing companies like the one he and his brother, John, started in Baker City to build the forward operating hay rake they invented and have begun manufacturing and selling.

Doug Shorey of Baker City came to talk with angel investors about funding to expand the education component of his Blue Willow Botanicals business, which specializes in providing natural plants for wetlands, range and forest restoration projects.

andquot;What I like to do is grow plants that make changes in the environment,andquot; said Shorey, a retired Baker teacher.

Edwards said leveraging capital from people like the angel investors is one of the keys to success.

andquot;If you make a good pitch to them, they can help make your garden grow,andquot; Jacobs said. andquot;They are here to help you, but make sure you have your act together.andquot;

All of the panel members said they are eager and motivated to help qualified start-up companies benefit from their experience and capital.

Robin Cole, regional coordinator for the Oregon Entrepreneurs Network, said PubTalk meetings are designed to bring entrepreneurs and investors together. However, the overall goal of the organization is to improve the climate for emerging, growth-oriented companies across Oregon and in the Baker area, in cooperation with the Baker Small Business Development Center and Baker Economic Development.

andquot;God knows Baker City needs all the help we can get,andquot; said Steve Brocato, Baker City manager.

He said the PubTalk and other efforts of the combined Baker City/Baker County economic development team is andquot;casting a broad net to go out and find out where economic development should spend its money.andquot;

andquot;Where is the best place to invest economic development money to bring businesses into town,andquot; Brocato said. andquot;Where is the best place to invest economic development money to help existing businesses grow and expand.andquot;

He said Baker City took over the economic development effort at his request last summer, but remains accountable to the Baker County Economic Development Council for the allocation of $136,000 a year in lodging taxes.

Jacobs said each PubTalk costs between $500 and $1,000 to put on plus the cost of bringing in out-of-town guests. Funding for the PubTalk comes from sponsors and a $5 admission fee.

andquot;The essence of PubTalk is the opportunity for emerging high-growth companies to gain exposure to investment dollars and to find support resources that can assist in their success,andquot; Jacobs said. andquot;The five-minute pitches and networking throughout the evening hep provide exposure for entrepreneurs.

andquot;The other major benefits are meeting with fellow entrepreneurs to share ideas and to further their education by participating with expert panels and keynote speakers,andquot; Jacobs said.

He describes Baker City as andquot;the next best place in Oregonandquot; for businesses that fit in with Baker City’s rural lifestyle to locate or expand.

andquot;We have a solid infrastructure, quality environment and we are business-friendly,andquot; Jacobs said.

He said the angel investor panel at Thursday’s pub talk helped connect local entrepreneurs and economic development staff with money resources in Portland, Boise and Hood River.

andquot;PubTalk is a dynamic event that gets the business community excited about the forward direction of economic development in Baker County and encourages us to dream of the possibilities,andquot; Edwards said.