SDSU/Brookings Angel Fund - New Angel Fund Formed in Brookings, S.D. to Invest in Local Companies
(Brookings, S.D. – February 2008) – A group of angel investors and RAIN Source Capital have formed a new RAIN angel fund, SDSU/Brookings Angel Fund, LLC, in Brookings, S.D. SDSU/Brookings Angel Fund is capitalized at $1,000,000 and has 18 members, including local angel investors and Minnesota-based RAIN Source Capital, which have pooled their investment dollars to create the fund. The fund will invest primarily in regional companies located in Brookings and the tri-state area of South Dakota, Minnesota and Iowa.
Duane Sander, retired Dean of SDSU Engineering Department, co-founder of Daktronics and founder of the Enterprise Institute is serving as the fund’s Chair. “The SDSU/Brookings Angel Fund gives entrepreneurs and university-based technologies an opportunity to be connected to capital. RAIN®funds will assist in strengthening our region’s equity infrastructure and help foster growth oriented, innovative economic development.”
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 to grow. In 2005, angels invested $23.1 billion in 49,500 U.S. businesses.
Marcia Hendrickson, director of South Dakota’s Enterprise Institute, was actively involved in organizing SDSU/Brookings Angel Fund and will provide local administrative services throughout the life of the fund. “We are delighted with the formation of SDSU/Brookings Angel Fund which is the second RAIN®fund formed in South Dakota. We found the RAIN®fund model very easy to use and can understand why the number of funds being formed using this model is growing so rapidly.”
SDSU/Brookings is the 22nd RAIN®fund to be formed through RAIN Source Capital, which includes a multi-state network of angel funds. Each individual 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. 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, SDSU/Brookings Angel Fund may also co-invest with other RAIN®funds. Brian Johnson, executive vice president of RAIN Source Capital, said, “We are very happy to have formed the second RAIN®fund in South Dakota. SDSU/Brookings Angel Fund, like all RAIN®funds, drew its members from prominent business leaders in the area. These members will pool their money and expertise to help promising companies grow into successful businesses.”
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 SDSU/Brookings Angel Fund, RAIN Source Capital also provides a process for due diligence, legal templates, management support and other resources.
SDSU/Brookings Angel Fund has already made seven investments and is actively screening other companies that are seeking an equity investment. Companies interested in being considered for equity funding may contact Marcia Hendrickson, at the Enterprise Institute at (605) 275-2833.
About RAIN Source Capital
RAIN Source Capital is a multi-state network of RAINâfunds that works with angel investors who are interested in supporting growing companies. RAIN Source® 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, MN. Brian Johnson, executive vice president of RAIN Source Capital, is a business graduate of the University of South Dakota. He can be reached at (651) 632-2143.
About Enterprise Institute
The Enterprise Institute is a non-profit corporation that provides customized assistance to inventors, entrepreneurs, and researchers to commercialize their innovation. EI has been developing angel networks in the state and region as well as offering services to assist the development of growth enterprises. Marcia Hendrickson, Executive Director, is a CPA and microbiology graduate of SDSU. Marcia is the South Dakota agent for the RAIN®funds in South Dakota. She can be reached at (605) 275-2833.