New fund looks to invest in Northwest Montana companies

A group of Montana investors and RAIN Source Capital have created a new fund to invest in Northwest Montana companies.

Frontier Angel Fund has secured more than $800,000 so far and plans to expand to $1.5 million.

The fund will invest primarily in early to mid-stage private companies, but also may consider investing in established companies and private companies in generational or ownership transitions.

Full Story: http://www.dailyinterlake.com/articles/2006/05/14/business/bus02.txt

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Angel comes to the rescue for small investment needs

Minneapolis/St. Paul Business Journal

by Mark Reilly
Staff Writer

A group of Twin Cities investors are joining together to launch an early-stage angel fund, giving a boost to the hopes of startup companies stymied in the search for capital.

The fund, called Twin Cities Angels, has raised about $1.5 million from its 30 members so far, with plans to go as high as $3 million. With additional side investments from members, the fund could eventually have $5 million to $7 million under management.

Twin Cities Angels will focus on deals between $50,000 to perhaps $1 million, said founder John Alexander. That puts it between the stages of friends-and-family funding and low-end venture capital — an area that’s been lacking in Minnesota, critics say.

Alexander said the fund could improve the traditional angel model, in which entrepreneurs seek out individual investors. "We’ve been looking for a way to do it better," said Alexander, a former executive at St. Jude Medical Inc.

The angel-network model pools the funds of individual investors, who also contribute time to research prospective deals. Unlike a venture-capital firm, members don’t collect fees, which keeps overhead low.

Full Story: http://www.bizjournals.com/twincities/stories/2006/05/15/story6.html?from_rss=1