The new Treasure Valley Angel Fund has garnered more than $750,000 from accredited investors, enough to begin investing in startups.
The fund, which seeks to raise up to $2 million, fills a void left by the $1 million Boise Angel Fund. That fund isn't taking on any new businesses.
Angel funds pool money from wealthy individual investors. The investors typically apply their experience to serve as mentors for entrepreneurs receiving angels' money.
"The Treasure Valley Angel Fund is the kind of jobs-and opportunity-creating machine that will help accelerate Idaho's economic growth through the skill and experience of proven business leaders and the creative energy of entrepreneurs," Gov. Butch Otter said in a news release.
The fund was backed by The Core, a medical-technology industry cluster based in Meridian. Earl Sullivan, The Core's chairman, served as the angel fund's interim chairman. Sullivan has handed control of the fund over to its members.
"Members of the Core, who are committed to building out a core competency in Idaho in health care, health research and innovation, are energized by the response of investors to grow the base of capital on which Idahos growing economy is built," Sullivan said.
Idaho lags behind other states in angel funds, Sullivan said. He said mulitple startups have been waiting for the fund to begin investing.
The fund will be managed by Loon Creek Capital, whose co-founder, Kevin Learned, is a founding member of the Boise Angel Alliance and co-founder of one of Idaho's first software companies, Learned Mahn.
"Idahoans have known for more than a century when to make an investment to prime the pump, and they have done it again," Learned said.
Federal regulations require angel fund investors to have a net worth of $1 million beyond the value of their primary residences or to earn more than $250,000 a year. Investors may not put in more than 10 percent of the net worth remaining after their homes, furnishings and automobiles are excluded.
Additional accredited investors in Idaho can review the fund's offering memorandum by contacting organizers at email@example.com, at www.treasurevalleyangelfund.com or at www.looncreekcapital.com. Investments for individual accredited investors or groups are in $50,000 shares up to a maximum fund of $2 million.