New angel fund starts up in Boise
BYLINE: Eddie Kovsky
A group of 15 local angel investors and Minnesota-based RAIN Source Capital have formed the Boise Angel Fund LLC, capitalized at $800,000.
The fund will invest primarily in regional companies located in Idaho as well as in the Intermountain region.
Fund members are looking to invest in companies with a high-growth potential. The fund is not exclusive to technology companies.
"We would exclude real estate," spokesman Kevin Learned said. "We're looking for companies that have a lot of potential to do more than $10 million in sales in five years; early stage companies that have potential to grow rapidly. "
RAIN has contracted with Learned, a local business leader and a member of the Boise Angel Fund, to serve as the Idaho field agent.
Learned led the effort to organize the Boise Angel Fund and, in addition to being a fund member, will provide investor support services throughout the life of the fund.
The fund grew out of the Boise Angel Alliance, which didn't have a pot of money to invest, Learned said. There is a need in the Treasure Valley for seed stage money, he said.
"This isn't raw startup money," Learned said. "They're not going to come to us with a raw idea. They've got something going. The next constraint is money to get to the next level. There's no such fund in the valley. "
The new fund is also good for the angel investors, Learned said.
"Making an investment by yourself is really hard to do," he said. "It's an enormous amount of work. The fund gives us 15 members to spread the workload. "
Officers of the Boise Angel Fund are Mary Givens, fund chair and secretary; and Philip Bradley, treasurer.
Angel investors, typically defined as individuals with annual income exceeding $200,000 and/or having a net worth of more than $1 million, are often self-made, cashed-out entrepreneurs who have capital and business experience, and are interested in helping other companies grow. In 2006, angels invested $25.6 billion in 51,000 U.S. businesses. In addition to investing capital, angels also invest time and expertise, providing business strategy and management support to companies they invest in.
The Boise Angel Fund is the 21st RAIN fund (and the first in Idaho) to be formed through RAIN Source Capital, which includes a multi-state network of angel funds. In addition to being an active investor in each of the funds, RAIN Source Capital also provides a process for due diligence, legal templates, management support and other resources.
Each RAIN fund determines what industries it will focus on, and the type and level of financing to provide, based on the interests and expertise of its members. Fund members play an active role in selecting and screening companies for potential investment, as well as monitoring company performance. The RAIN funds are also able to draw upon the expertise, experience and deal flow from across the network.
For more information on the Boise Angel Fund, contact Kevin Learned at kelearned@msn.com