AVRA Launches Nationwide Program

A nationwide equity guarantee insurance program to encourage venture capital investments may be launched in Arkansas.

“We’ve developed a program to reduce the risk to investors in early-stage enterprises and make it easier for entrepreneurs to secure the financing they need,” said Howard Feldman, CEO of AVRA Financial Inc. of Sun Valley, Idaho. “Coupled with that is a system to prevent these companies from failing. We have discussed this program with a number of influential business and political leaders in Arkansas. We are considering launching this program nationwide and having Arkansas be the first state.”

Feldman said the program would “reduce the risk to investors so their money is protected and they will not incur any more than a 50 percent loss.”

Feldman said AVRA officials met with representatives from two Arkansas groups, who in turn asked AVRA to come up with an official proposal.

Feldman wouldn’t name the groups, but he did say AVRA people met with Lt. Gov. Win Rockefeller on July 17.

Feldman said Texas, California, Ohio, Michigan, Minnesota and Colorado are also vying to be the launching pad for the program, but Arkansas may win out because of “political contacts” AVRA has in the state. Among those contacts, Feldman mentioned Kenny Douglas, who is related to the Fulbright family of Fayetteville.

AVRA stands for American Venture Resource Association. The organization was founded by Allan Isen, who helped develop the soft contact lens.

“The business plan has some very appealing and interesting aspects to it,” said Tim McFarland, managing partner with MCG Financial Advisory Services in Harrison, “but it is going to be a complex business model to pull off.”