Red Wing startups have a new source of funding to explore thanks to angel investment group Golden Triangle Fund, LLC.
After years of pursuing a fund like this, Executive Director of Red Wing Ignite Neela Molgaard said she's thrilled these investors have come together for the good of the community and to help businesses in the area.
"This type of risk factor is not for everyone's financial portfolio," Mollgaard said. "As we're trying to build this innovative ecosystem, risk capital is a critical element. We have bank loans that most people aren't eligible for, we have loans through the Port Authority, and now angel funds provide a unique resource for taking businesses to next level."
The first beneficiary of the fund has already been identified. Startup Live.Give.Save., a locally owned female-led business, impressed Golden Triangle Fund by not only having a fantastic idea, but by being able to execute on it as well, said shareholder Mark Fox.
The closest such fund is located in Rochester. Golden Triangle Fund is the first angel investment group that has formed in Red Wing. It aims to create good new economy jobs that will make the city a better place to live, Fox said.
Once a business is supported by the Golden Triangle Fund, stakeholders plan to remain engaged to help that business succeed.
The fund plans to invest $25,000 to $100,000 at the seed stage and may provide larger investments along the way to support growth. Investments are made in exchange for convertible debt and/or ownership equity.
"By providing capital and leadership, we are hoping the fund will positively impact the local economy through the creation of good, high-paying jobs," said Rich Bodensteiner, a fund shareholder.
Golden Triangle Fund has partnered with RAIN Source Capital Management, a St. Paul-based business that has formed and serviced angel funds in 12 states. Red Wing Ignite will oversee the fund.