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Angel may be controversial disqualification
The American venture capitalist and business angel John Garcia launched last winter by the publicly funded business developer Teknopol among new firms in Lund and Malmö. Here was a man who could invite entrepreneurs both inspiration and money. Now his halo has gone askew after disqualifications in the United States.
- Thankfully, there was no agreement with any of the companies here, "says Bodil Jönsson Rosvall, CEO of business incubator Minc. John Garcia is subject to disqualification in California, after authorities there found that he lied about what he had to offer.
When Garcia visited Minc in Malmö in December last year he said his company Angel Strategies is, “…probably the largest business angel network in the world.”
In his appearance, which was filmed, he said that his network consists of 226 investors who everyone, including himself, invested one million U.S. dollars each year. But according to the California authorities' investigations, Angel Strategies had only 39 investors, who invested much more modest sums.
John Garcia is accused not only of lying about his skill as an investor and company builder, but also for having deceived the people to invest money in the U.S. A few paid John Garcia to arrange venture capital for their businesses. Some investors, however, never seemed to receive the money. A couple have sued Garcia, who in turn has sued them.
- They have put this in the system and sued the former partners around the U.S. for many years. I have been working for 21 years and this is the first time I get sued, "said John Garcia.
However, there may be more lawsuits. Similar cases are now rolled up with people who have invested money or shares in his company for help by Garcia and his firm Angel Strategies, but received little or no return.
John Garcia's statement that the complaints come up right now is the economic situation, but also that entrepreneurs sometimes think that money will put everything right when it turns out that their business idea does not hold.
It was Teknopol who invited John Garcia to Ideon Innovation in Lund and Minc in Malmo at the end of last year.
Rosvall Bodil Jönsson is CEO of Minc. She is glad that no agreements were reached with contractors there.
- We have learned a lesson. We asked for references, but they never came.
Teknopol requested no references at all.
- Goran Eriksson, whom I have known for many years, introduced him, "said Marianne Larsson, business developers Teknopol.
Goran Eriksson has lived in Southern California in 26 years and worked with venture capital, including a fund, which he formed with John Garcia. The two have gone their separate ways since the allegations against Garcia rolled up.
- Whether there is much, little or nothing behind the allegations against him became so unbearable that he was a member of the fund, which, incidentally, is on hold now because of the economic situation. Goran Eriksson says he does not know much about John Garcia’s activities.
- More than that he has long been a well-known figure in business in California. He has also been to Sweden to find ideas in the past, including at Ideon, but I have not been involved.
Sydsvenskan has repeatedly asked John Garcia for references. But Garcia cannot state the names of individuals or companies to prove that he has been successful in the venture capital industry. Finally he says that he can do it if we sign an agreement to keep the information secret. We think not.
