CPR Cleveland Professionals Resource fund

CoolCleveland reported that, at the party announcing plans for JumpStart, OfficeMax founder Michael Feuer offered sane advice to entrepreneurs - borrow from attorneys and physicians, as “they have lower expectations...".

While I don’t use his reasoning, I agree start-up entrepreneurs in Cleveland must borrow from attorneys and physicians, because they hold a large percentage of the region’s wealth – it needs to go into circulation in the new economy, rather than exclusively mutual funds and such conventional investments.

I suggest a fund be established to allow such professionals – who are qualified investors – to invest some percentage of their investment portfolios, perhaps from 5 to 10%, in a CPR fund (Cleveland Professionals Resources), and those funds from 1,000s of professionals may exceed $100,000,000. The funds should be used for investments in 100s of Northeast Ohio start-ups, at more friendly than typical angel terms.

James Ireland, who runs an early-stage investment firm, estimates this region could easily absorb another $250 million in venture capital. The Plain Dealer suggests one source may be our foundations, many of them created by earlier entrepreneurs and now considering how they can replenish the region's wealth. Northeast Ohio foundations control roughly $6 billion. Pooling even 2 percent into a well-managed venture fund would make $120 million available.

A CPR fund could take care of the rest, and really balance out the economic tables in the region – sharing risk and opportunity for all.