Angel Funders Report 2021 - Flipbook - Page 50
BAYLOR ANGEL NETWORK:
A Win-Win Partnership for Investors,
Entrepreneurs, and Students
The Baylor Angel Network (BAN) collaborates with Baylor University to
provide funding to entrepreneurial ventures and offers an innovative
experiential education program to top university students at the. BAN and
their portfolio companies have a strong track record built on combining
education, mentorship, and data - a story with a fascinating twist.
The BAN was launched in 2008 to engage alumni and offer a handson educational opportunity for Baylor students. Through the Hankamer
School of Business, students work as analysts to help identify, research,
and screen prospective companies. BAN members are primarily, but not
exclusively, Baylor alumni. Companies funded do not need to have a
university connection. When investments generate returns, angels often
gift a portion of the profits back to the Hankamer School of Business.
“Baylor Angel Network’s differentiator for investors and entrepreneurs is the
devoted student analysts. The differentiator for students from other Baylor
business organizations is the real-world experience,” explains Steven Diedrich,
BAN Executive Director. “Employers recognize the value of this innovative
program, with our students often receiving higher salaries than most MBAs.”
Diedrich himself was a student analyst in the program’s early years and
came back as lead in 2019. When Diedrich took the reins, the angel network
membership had dwindled to 31. He focused on improving several key areas:
Deal flow quality through personal outreach and relationship networking
Cultivating mentoring relationships between students and entrepreneurs
Leveraging promising deals to recruit more angel members
Recruiting younger accredited investors to bring new energy to the group
Members of BAN has also launched a separate sidecar fund to
attract new investors and help members diversify their portfolio. It
aims to invest $5 million across 20 companies over three years.
48 | Angel Group Insights: Building Economies, Together
Baylor Angel Network’s
differentiator for investors
and entrepreneurs is the
devoted student analysts. The
differentiator for students
from other Baylor business
organizations is the real-world
Today, the Baylor Angel Network boasts 90 members
and has invested $24 million in more than 70 companies.
Most BAN members live in Texas, and about half of the
deals are Texas-based. The average investment per deal is
around $250K. In 2020, the group invested $3.7 million in
11 deals – eight of them new and three follow-on. Through the university,
87 students have been through the BAN analyst program from a variety
of backgrounds and degree programs—finance, engineering , and the
sciences. The current analyst class includes five women and three men.
2020 was a banner year for the BAN – not just because of investment activity,
but rather from a very successful exit -- Modern Message, a residential
engagement platform for multi-family properties was acquired by RealPage
Angels generated a greater than 30x return after seven years. Overall,
members of the Baylor Angel Network received over $9 million from
three positive exits in 2020, with an average holding time of 6-7 years.
The Baylor Angel Network is an innovative model of collaboration
between academia and business leaders. While being an active angel
network, it provides an opportunity for students with to get sustained,
hands-on experience. This is definitely a model to be watched.
Angel Funders Report 2021 | 49