Scot Wingo, co-founder and CEO of ChannelAdvisor, and Andy Schwab, who runs the First Flight Venture Center, are part of a “new wave” of investors that are providing more financial firepower to North Carolina’s entrepreneurial community. A new report says that these “undisclosed” investors provided 66 percent of funding in the first six months of this year.

The Council for Entrepreneurial Development’s “2014 Innovators Report” found that $266 million was raised by North Carolina firms in the first six months of the year. But of that, only a third of that – some $90 million – came from venture capital investors.

Funding is up from $203 million in the first half of 2013, and institutional investors made up some 50 percent of those deals.

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By far the largest percentage in the 2014 investments came from angel investors such as Wingo and Schwab – entrepreneurs who grew tech startups and either took them public, as Wingo did last year, or sold, as Schwab did his startup (TriNet).

“Non-disclosed” refers to investors who didn’t want to be identified and also a number of companies that don’t want to talk about money they have raised. They are either in “stealth mode” or aren’t interested in drawing media attention normally associated with announced venture deals.

And a key point is this: Wingo noted that VC funding has almost always been a stumbling block for Triangle startups. No longer.

Other options are available – and being capitalized upon, as the CED report shows clearly.

Asked about the CED report, both Wingo and Schwab said this self-described “new wave” of investors were transforming the capital raising environment for new and emerging companies.

They also say that changes in how firms are built now – with a lower cost structure for hardware and other support now vs. a decade ago – mean that angels and other investors have the “dry powder” to keep growing firms.

Interviewed at the CED’s “Tech Venture” conference at the Civic Center shortly after the report was released, Wingo recalled that he needed multiple millions od capital to grow ChannelAdvisor into a global e-commerce services powerhouse.

“A company can do today with $2 million what I needed $20 million to do,” Wingo explained.

Schwab concurred and noted that more angels as well as “accredited investors” are stepping forward to make deals. For example, RTP Capital is a network of investors that has swelled to 15 members and includes David Gardner, one of the region’s most active angels.

“With an investor network,” Schwab adds, “you don’t have to worry about running out of money and raising a new fund. Now, you find more investors. the money never runs out.”

Wingo is investing in a couple different ways:

As an angel

And as a limited partner. (He is an LP, or investor, in the Bull City Ventures fund)

Wingo is an example of an LP investor that CED says is among emerging, more powerful sources for capital.

So more and more entrepreneurs are having to rely less and less on venture capitalists for investments as they approach what Wingo calls the “point of decision.”

Companies such as fast-growing Windsor Circle, which recently closed a round, can decide whether they need to raise more capital or grow organically based on customer and product growth. In the past, Wingo explained, a lot of Triangle ventures “went over the cliff” when they were unable to raise a $5 million round after burning through $2 million.

Now they have options beyond institutional VC. 

Schwab and Wingo also said they believe these angles and “undisclosed” investors also can put together enough capital through syndications and partnerships to help startups reach an IPO point or explore mergers/acquisition or continue to grow on their own.

So why are these investors making plays?

Wingo and Schwab both cited three key points:

1. Making money

2. Growing companies and jobs in North Carolina

3. Keeping those companies here.

That influx of capital leaves CED feel very good about the startup environment.

“We have seen a lot of activity started since we compiled this report,” said CED President Joan Siefert Rose. And CED Program Director Druv Patel pointed out that the venture conference drew the interest of numerous out-of-state investment funds.

More money from more sources means more fuel for startups.

Pretty good news, eh?