Angel & Venture Capital News

Boise Gains First Angel Investor Network

The Boise Angel Alliance, the city's first angel investor network, was launched in June drawing about 50 investors to its first session, The Idaho Statesman reported. The Idaho Office of Science & Technology and the venture capital committee of the Boise Metro Economic Development Council, which together formed the alliance, said they expect to run the network on their own. A screening committee reviews the plans set forth by companies that must then make a 10-minute presentation at the angel meetings, followed by a five-minute question-and-answer session. Investors may privately contact the companies afterwards if they are interested.

Illinois Commits $50 Million for VC Fund

Although a modest amount compared to other state initiatives, Illinois will invest $50 million in venture capital funds that the state treasury department promises will create jobs and provide a good return. The Technology Development Fund will not invest directly in companies, but rather in venture funds based in the state to minimize risk, the Chicago Tribune reports. According to the Tribune, former Gov. George Ryan initially introduced the idea for the fund over four years ago in an effort to make Illinois more attractive to entrepreneurs and venture capitalists.

Louisiana Takes On Capital Needs on Several Fronts

• VC Fund Announced Following Criticism from Biotech Conference
  
  Louisiana State University (LSU) System President, William Jenkins, announced in May the creation of the LSU Research and Technology Fund to offer seed money to start-up companies unable to commercialize research from the state’s institutions. The announcement came just a day after a biotechnology conference in New Orleans highlighted the state’s lack of venture capital for start-up companies, according to the Morning Advocate. The fund is expected to raise $15 million to $20 million in early capital and close with about $35 million. In April 2003, the state committed an initial $5 million, which can only be made available by a $10 million match.

• Louisiana Teacher’s Retirement System Investing $10 Million In VC Fund
  
  The Teachers’ Retirement System of Louisiana will invest $10 million into a venture capital fund that will concentrate on licensed technologies in pharmaceuticals, biotechnology, agriculture, and other areas vital to economic growth, according to a recent article in The Advocate. Louisiana Fund I, created by the LSU System Research and Technology Foundation, will provide seed money and early venture capital to emerging technologies. An independent board of directors will operate the fund, which according to Paula Jacobi, the foundation’s CEO, is expected to close its first funding round with $20 million to $25 million in early October.

• Angels Network Allows Entrepreneurs to Sell Business Ideas
  
  Entrepreneurs in Louisiana will soon be able to pitch their business plans to a group of angel investors through the Louisiana Angel Network. The network, modeled after similar networks such as Chicago Prairie Angels and Nashville Capital Network, will have a website to allow angel investors to confidentially review business plans. Still undergoing testing, the network is expected to go live in about two months.

Wisconsin Focusing on Development of State-wide Angel Network Fund

To fuel rapid development and expansion of high-growth industries in Wisconsin, the state Department of Financial Institutions (DFI) will focus on establishing a state-wide angel network fund. DFI currently is creating an online portal called the Angel Capital Resource, to direct angel investors to the networks and other resources in the state, Wisconsin Technology Network reports. The department also will collaborate with other state agencies to produce an annual study of Wisconsin businesses to capture trends in entrepreneurship and obstacles faced by new businesses. According to DFI Secretary Lorrie Keating Heinemann, the department hopes to create a $10 million state-wide fund, however, collaboration is needed between the private and public sectors as well as the legislature in order to do so.