Introducing The Frontier Angel Fund, LLC. Frontier’s geographic investment priority is Western Montana, Montana, the Inland Pacific Northwest.

Developing funding opportunities for innovative startups in Montana and the Inland Pacific Northwest is a crucial goal for our future economic success.

An effort was started in 2005 to develop a world class Angel Fund in Montana’s Flathead Valley. The result has been a stellar group of knowledgeable and well-connected Angel investors who are actively engaging entrepreneurs and startups who have the possibility of developing successful companies.

The strength of the Frontier Fund lies not only in the funding they have to offer but also in the mentoring and guidance that they can provide to budding companies.

If you believe that you have a strong value proposition and a business model that can succeed in today’s competitive global marketplace, please read the full description of the fund and take the appropriate actions to have your company considered for funding.

What is the Frontier Angel Fund, LLC?

The Frontier Fund is a member managed, early stage fund that makes direct investment in companies. As of December, 2006, the fund has 29 investors and total capital of $1.5 million. Member managed means the investors make the investment decisions by a vote of the majority. Frontier is a partner with RainSource Capital http://www.rainsourcecapital.com/ which provides education, support, investment services and guidance to 17 angel funds in the Pacific Northwest.

How is Frontier Fund different from a venture capital fund?

The Frontier Fund members are investing their own money and making the decisions. A venture capital fund is managed by professional investors who make investment decisions with money from other people and institutions who invest in the venture capital fund.

What kind of companies does Frontier invest in?

Frontier invests in high-tech, low-tech and no-tech companies that can grow and have an exit opportunity so that the investors can make a return on their investment within some period of time.

What is an exit opportunity?

The most likely exits are the company is sold to another company, the employees buy the company or the owner/management buys out the investors.
Going public happens very infrequently but can be an exit for investors.

Where will Frontier invest?

Frontier’s geographic investment priority is Western Montana, Montana, the inland Pacific Northwest.

How can I get to the Frontier Fund?

Liz Marchi is the fund coordinator. She can give you access to the web based platform that the Frontier Fund uses.

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(If you do contact MS Marchi and the Frontier Fund, please mention that you heard about fund through MATR. Thank you. Russ)

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Elizabeth C. Marchi

President

MONTANA WEST ECONOMIC DEVELOPMENT

(aka Jobs Now, Inc.)

490 W. Reserve Drive, Suite B

Kalispell, MT 59901

Phone 406-257-7711

Fax 406-257-7772

[email protected]

Home

The process flow is:

Submit your initial entrepreneur application on the web

The Screening Committee of the fund meets in person and screens which companies they want to bring before the entire group. The Screening committee is looks at many things including management, product, service, idea, market and scale.

If you pass the Screening Committee you will be asked to fill out a very detailed application. Most of the information on the application should already be in your business plan.
The company is invited to present to members of the fund. The Fund holds meeting quarterly and calls meetings. You will be asked to present for 20-25 minutes and take questions.

The Fund members then vote on whether to move forward with due diligence on the company. A due diligence team is formed based on interest and expertise among fund members.
Due diligence takes time. The due diligence committee keeps the other members informed of their findings and progress.
The due diligence committee will make a recommendation to the members on whether or not to invest.

If the recommendation is yes, then a term sheet is begun. The due diligence team will bring the negotiated term sheet to the full membership for a vote yes or no.
If the vote is yes, legal documents are prepared for the investment.

How much money will Frontier Fund invest in a company?

There is no set minimum or maximum. For diversity in the portfolio, the fund would like to have 8-10 investments.

What if a company needs more than Frontier can invest?

Every member has the opportunity to make “side by side” investment on the same terms as the group invests. Most angel funds of this type attract side by side investment by individual members equal to or greater than the fund’s investment. For example, if the Frontier Fund invests $150,000 from its pooled fund, members of the fund likely would invest another $150,000 for a total of $300,000 to the company. As part of the Rain Source Capital network, Frontier can submit investment opportunities to the other 16 funds in the network for consideration.

How much of a company will Frontier Fund “own” if they invest?

That depends on the valuation and the terms of the investment. Sometimes investments take the form of debt. Frontier Fund likes to have observation rights and/or a board seat for the companies in which they invest.