"We will start with a $1m fund and expect individual investors to co-invest alongside this fund at a multiple of three. However, the potential to grow this available investment is enormous."
Prebble said the group, part of a national association of angel investor organisations, would typically make equity investments in businesses of anywhere between $50,000 and $1 million.
A fund investment committee would select investments that met certain criteria and invite them to present their business cases in a "kind of Dragon's Den" situation.
"However, we are then reliant on members with significant and relevant business experience to support the investment committee in the due diligence phase and to make the decision to invest. In the early days we may co-invest with other angel groups around the country and learn from their deep experience."
Prebble, who has now moved back to Hawke's Bay after 35 years, said he was already "extremely impressed" with the entrepreneurial talent in Hawke's Bay.
"Positioning that talent into the right opportunity space will be the key to our success."
In addition to drawing on a pool of capital provided by club members, HB Angels would also launch highly-targeted funds that would invest alongside club members in growth businesses led by talented entrepreneurs.
Technology entrepreneur and HB Angels marketing advisor Lewis O'Donnell said the investment group was looking for talented entrepreneurs with the aspiration to start and lead a national or international business.
"There is a tremendous pool of talent in the region and the HB Angels will be able to provide capital and support to help those businesses grow and expand."
HB Angels were seeking interest from individuals with an interest in angel or venture capital investing and supporting local entrepreneurs to become members of the club. In addition, local entrepreneurs seeking growth funding should contact the club.
HB Angels would host their inaugural showcase at the Caution lounge at Shed 2 on May 16 from 5.30pm to 7.30pm with key presentations by angel investing experts and entrepreneurs.
People can register for the event through the www.hbangels.co.nz website.