SIOUX FALLS, S.D.--(BUSINESS WIRE)--A group of angel investors and RAIN Source Capital have formed a new RAIN angel fund, Prairie Winds Capital, LLC, in Sioux Falls, S.D. Prairie Winds Capital is capitalized at $800,000 and has 14 members, including local angel investors, institutions, 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 Sioux Falls and the tri-state area of South Dakota, Minnesota and Iowa.
Dale Froehlich, former CEO of Business Aviation Services, a local aviation services company, is serving as the fund’s Chair. “I wanted to help organize a fund here in Sioux Falls,” he said. “The formation of Prairie Winds Capital, a certified RAIN fund, is a valuable addition to this community, because we will help support promising companies, while also providing opportunities for active investors seeking a return on their money.”
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 Prairie Winds Capital and will provide local administrative services throughout the life of the fund. “We are delighted with the formation of Prairie Winds Capital, which we hope is the first of several RAIN funds that will be 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.”
Prairie Winds Capital is the 18th 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, Prairie Winds Capital 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 first RAIN fund in South Dakota. Prairie Winds Capital, 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 Prairie Winds Capital, RAIN Source Capital also provides a process for due diligence, legal templates, management support and other resources.
Prairie Winds Capital has already made two 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) 275-8011.
About RAIN Source Capital
RAIN Source Capital is a multi-state network of RAIN® funds 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.