Montana West Economic Development Announces New Montana Angel Fund to Invest in Local Companies

A group of Montana angel investors have formed the Frontier Angel Fund, LLC, the first member-managed fund in the state of Montana. The Fund is currently capitalized at more than $800,000 with plans to expand up to $1.5 million.

The fund will invest primarily in early- to mid-stage private companies located in northwestern Montana. It may also invest in late-stage private companies, and in private companies that are undergoing generational or other ownership transitions. The Frontier Fund is the 14th angel fund in RAIN Source Capital’s growing network for angel investors.

The group currently has 15 members, including local angel investors, institutions, and Minnesota-based RAIN Source Capital, which have pooled their investment dollars to create the fund. Angel investors are often self-made, cashed-out entrepreneurs who have capital and business experience, and are interested in helping other companies to grow.

In 2005, angels invested $23.1 billion in 49,500 U.S. businesses.
Bob Smith, chairman of the Frontier Angel Fund, said, “Participating in the fund gives members the opportunity to meet and work with like-minded, interesting people in the community; gain exposure to companies with good investment potential; and help provide an important stimulus for regional business creation and growth, while also bringing the opportunity for favorable return on your investment.”
“Investing in growing companies is an important element in job creation,” said
Elizabeth Marchi, president of Montana West Economic Development, which helped facilitate the formation of the fund.

“While Montana has record low unemployment, we are lagging significantly in wages. We believe that increasing access to start-up and equity capital is essential to building innovative, high value, new economy companies in the state.”

The Frontier Angel Fund is the 14th RAIN® fund to be formed through RAIN Source Capital, which includes a multi-state network of angel funds. Each individual RAIN fund determines what industry it will focus on, and the type and level of financing to provide, based on the interests and expertise of its members. The RAIN funds are also able to draw upon the expertise, experience and deal flow from across the network. In addition to investing in local companies, the Frontier Angel Fund may also co-invest with other RAIN® funds.

“In Montana and across the country, there is a growing interest in supporting emerging companies, and individual angel investors, especially new angel investors, are realizing the benefits of investing together as a group,” said Steve Mercil, RAIN Source Capital’s president and CEO. “The Frontier Angel Fund is the first organized,
member-managed angel fund in the state. And, through our network of RAIN® funds, businesses in the area will have access to millions of dollars of investment capital.”

Fund members play an active role in selecting and screening companies for potential investment, as well as monitoring company performance. In addition to being an active investor in Frontier Angel Fund, RAIN Source Capital provides a process for due diligence, legal templates, management support and other resources.

The Frontier Angel Fund will consider adding new members until the first investment is made. Interested accredited investors and companies interested in being considered for funding may contact Marchi at (406) 257-7711 or [email protected] .

About RAIN Source Capital

RAIN Source Capital is a multi-state network of RAIN funds that works with angel investors who are interested in supporting growing companies. RAIN SourceSM helps bring together like-minded angel investors to form individual RAIN funds ~ and then provides these funds with additional capital, a process for due diligence, legal templates, management support, access to deal flow and other resources. RAIN funds share expertise, deals and experience between and among RAIN Source Capital’s multi-state network of RAIN funds, to support growing companies throughout the area. RAIN funds range in size from seven to 61 members, who have pooled anywhere from $500,000 to $2 million. RAIN Source Capital is based in St. Paul, Minn.

About Montana West Economic Development

Montana West Economic Development (formerly Jobs Now, Inc.) was founded in 1997 by forward-looking business leaders in Flathead County. Offering professional economic development assistance to local and expanding businesses, the organization’s mission continues to be focused on growing job opportunity. The staff is committed to the highest level of professional service. Montana West Economic Development is financially supported by private investors who are actively involved in the economic development efforts of the organization. Montana West Economic Development also runs the Flathead County Economic Development Authority.

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Montana Gets A Much-Needed Angel Fund

By Jonathan Weber, 5-04-06

Our friend Elizabeth Marchi at Montana West Economic Development today announced an initiative that’s sure to delight entrepreneurs in Montana and throughout the region: the Frontier Angel Fund, an investment group that will finance growth businesses in Northwest Montana and nearby locales.

The new fund is being created in partnership with St. Paul-based RAIN Source Capital, which has a network of 14 similar funds in rural areas in Minnesota, Iowa, and the Dakotas. Steve Mercil, the CEO of RAIN Source, says the group is actively working on additional funds in Montana, Idaho, Washington and Oregon. As an entreprenuer who recently spent a considerable amount of time raising money for a Montana start-up business, I can testify that such funds are sorely needed, especially in areas that are far from the major financial centers on the East and West coasts.

Full Story: http://www.newwest.net/index.php/main/article/8230/