Startup mentors share expertise in forum here
By Sean Hao
Advertiser Staff Writer
A group of California angel investors is winging its way to Hawai'i this month.
The Keiretsu Forum will join other local investment groups, such as the University of Hawai'i Angels and HiBEAM, that connect well-heeled investors with young companies in need of cash.
Like other organized, early-stage investors, Keiretsu also extends the expertise of its members, including attorneys, chief executives, physicians, athletes, scientists and other professionals.
Act 221, "is going to bring a lot of companies that have presented on the Mainland and may make the decision to set up in Hawai'i," Frank Paniagua said.
Formed about three years ago in Northern California, Keiretsu has about 150 members and chapters in Southern California and Calgary, Alberta. Frank Paniagua, president of the new Hawai'i/Pacific Rim chapter, said the forum was drawn here partly because Hawai'i is geographically positioned to draw companies and investors from Japan, Singapore, South Korea and other Asian countries.
The forum also is attracted by efforts to diversify the state's economy away from tourism, and investment tax credits such as Act 221, which "is going to bring a lot of companies that have presented on the Mainland and may make the decision to set up in Hawai'i," Paniagua said.
So-called angel investors provide capital to companies in early stages of development. Keiretsu members typically invest between $250,000 and $500,000 each.
Ted Liu, director for the Department of Business, Economic Development and Tourism, said angel investors fill an important role in capital formation by financing companies that aren't established enough to attract venture capital. Many also could use an infusion of intellectual capital, he said.
"We have a lot of companies that need investing and advice and mentoring," Liu said. "I think Keiretsu can feed that.
"I hope the local investing community will fall in behind them."
Honolulu patent and technology attorney George Darby is among 100 people expected to attend Keiretsu's first, invitation-only Hawai'i chapter meeting today at Restaurant Row.
Six companies will seek capital, including local technology companies Hawaii Biotech, Hoku Scientific and Hoana Medical. Some of the companies also will present at the Wayne Brown Institute Investors Choice International Equity Capital Conference at Turtle Bay Resort on Wednesday.
Additionally, Tiki Technologies Corp., a spinoff of Internet service provider LavaNet Inc., will be seeking investors through the forum. Tiki is an effort by LavaNet to broaden its business into Internet-related software that blocks spam and optimizes and backs up broadband Internet connections.
LavaNet president Yuka Nagashima called the forum a great opportunity for local investors to attract capital and gain exposure.
Darby, a member of the UH Angels, sees in Keiretsu an opportunity to make business contacts and get investing ideas.
"I see it as just another investment channel," he said, "one more avenue to capital."
The forum expects to open a Hawai'i office eventually and hold quarterly meetings.
"This is a permanent thing," said Paniagua, who lives in California but owns a home in Hawai'i. "We're not just coming to dip our toes in the water, get some sun then go home."
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
