PIEDMONT ANGEL NETWORK LLC
The Entrepreneurs Fund SM

Prospective PAN Members / Investors

As of December 31, 2007, the PAN One and PAN Two funds, which have attracted $10 million in capital, are closed to new investors. PAN Two continues to be active and anticipates up to six new investments this year. Typical deal sizes range from $250,000 to $1,000,000. Plans are currently underway to launch PAN Three in the fourth quarter of 2008. If you are interested in learning more about the new fund, simply contact the fund executive:

Mailing Address:
Troy Knauss
Fund Executive
Piedmont Angel Network
2007 Yanceyville Street, Box 69
Greensboro, North Carolina 27405


Contact Information:
tknauss@piedmontangelnetwork.com
336/ 235-0941 (office)


Benefits of Joining PAN?

There are many benefits from PAN membership. The order of priority may vary between members but all benefit from each of the following:

1. We expect a significant return on our investment. We only invest after an extensive due diligence indicates we have a good chance of getting 5-10 times our investment in 5 to 10 years.

2. Members enjoy meeting and working together. Participation in the screening, due diligence or monitoring teams is an enjoyable, educational and rewarding experience.

3. There is a strong sense of satisfaction from aiding entrepreneurs and the North Carolina economy. All investments will be in companies within a three-hour drive of the Triad, with some preference for Triad based firms.

4. Investment in PAN qualifies for the “QBV” (qualified business venture) North Carolina income tax credit the year following the investment.



What is required to invest?

1. Members make a capital commitment of $50,000 or more. The “cash in” is staged to coincide with the timing of investments, typically in $5,000 increments. Thus it may be several years before all of the commitment is “called.”

2. Additional “add on” investments can be made with almost any PAN fund investment.



What is the fund's investment philosophy?

The fund seeks a positive return on its investments, however PAN members participate for other reasons including: 1) encouraging entrepreneurial companies and entrepreneurship; 2) meeting and networking with entrepreneurs and entrepreneurial companies; and 3) providing assistance to, and/or mentoring, PAN portfolio companies based on the member's business and/or professional experience and network.

Based on the risk profile of an early stage equity investment, PAN expects a return in excess of what would otherwise normally be available in the stock market. It is recognized that the time horizon, between the initial PAN investment and a liquidity event for any individual portfolio company may range from five to ten years. PAN makes every effort, however, to identify investments likely to provide early exit opportunities so that an earlier return might be available.

PAN Members / Investors expect to be active in assisting and/or monitoring their portfolio companies and therefore PAN is mostly interested in investing in companies located near the Piedmont Triad region of North Carolina. Investments outside of an approximately 3-hour drive will only be made for an exceptional investment opportunity. PAN focuses on early stage companies where a product has been developed, although not necessarily fully functioning, and where the principals and founders are highly committed.

All PAN investments are made by the fund; with each member having his/her prorata share based on their percent of total fund allocated monies. Cash returns are not distributed until all committed funds have been paid in. Following that event, any exit by sale, IPO or other means of a portfolio company will result in cash out to members relative to their share of the total fund.