North Carolina

Minnesota

Angel networks target financing gap.

The Minnesota Investment Network Corp. is establishing up to 10 Regional Angel Investment Networks (RAINs) to serve Minnesota entrepreneurs located outside the Minneapolis/St. Paul metropolitan area. The networks of accredited angel investors will have capitalizations ranging from $500,000 to $1 million. Currently the Lake Venture group in Northwest Minnesota is the only RAIN operating; the other nine are expected to be up and running within the next two years.

The networks will invest in three kinds of companies: early-stage ventures needing seed money, start-ups with some sales, and small or midsized companies that have $5 million to $25 million in sales and need capital for expansion, a turnaround or an ownership change. All firms must either be located entirely in a rural area or have a strong presence (such as a manufacturing plant) there.

Individual RAINs are expected to invest $50,000 to $100,000 per company. Once all the networks are up and running, though, organizers anticipate some may join forces to make investments in the $250,000 to $1 million range.

For more information on RAINs, call (612)672-3474.

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This article was originally published in the August 1999 print edition of Entrepreneur with the headline: North Carolina.

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