“Angel Fund’ established by local group
A new, locally focused angel investment fund, Golden Triangle, Fund, LLC., is being
established to provide funding and support to early stage, high growth companies in Red
Wing and Southeast Minnesota.
Angel Funds are groups of individuals who invest capital in a business start-up in exchange
for convertible debt and/or ownership equity. Think of the popular television show, Shark
Tank, where entrepreneurs pitch their business plan to a panel of investors who decide
whether to invest in the business.
Angel Funds serve a need as bank financing is typically not available to early stage
companies due to risk.
“By providing capital and leadership, we are hoping the fund will positively impact the local
economy through the creation of good, high-paying jobs,” stated Rich Bodensteiner, a
shareholder in the fund.
The fund will typically invest $25,000 to $100,000 at the seed stage, where investors are
actively involved with the founders to help them build successful companies, and may
provide larger follow up investments.
“We have so many tremendous community assets such as Red Wing Ignite which offers
resources to help startups and entrepreneurs,” said Mark Poss another shareholder. “But
the thing that is missing is access to capital for entrepreneurs. We see the creation of this
fund as one more tool to help develop more local businesses and the economy.”
While the primary focus of the fund is local and regional economic growth, angels also seek
a return on capital. The nature of angel investing is high risk, and sometimes high reward.
“Identifying and helping the next blockbuster company would benefit the entrepreneur, the
community and the investors, a triple win, “according to Poss.
The Golden Triangle Fund is partnering with RAIN Source Capital Management and Red
Wing Ignite to oversee the fund. RAIN Source Capital forms and services angel funds in 12
For more information on angel funds and their impact on local economies contact Neela
Mollgaard at Red Wing Ignite. firstname.lastname@example.org.