The importance of angel investing

Angel investors can be the first source of capital that transforms a business idea into a product with sales and revenue. The choices they make create opportunities or barriers to founders.

Today, women and people of color are underrepresented among angels. That means investment decisions are most often made by a group that does not reflect the diverse community of entrepreneurs needing early-stage investment.

As Forge North works to increase early-stage access to capital and racial equity, we are passionate about not just educating new angel investors, but also helping them find community. Two Catalyst cohorts, led by Groove Capital and TechTown Detroit and made possible with support from BMO, will bring together emerging angel investors, active angels in their first few years, and people who work closely with angels.

Cohort members will grow their understanding of the fundamentals of angel investing and get to know one another at industry-specific events highlighting our region's strengths at CPG (consumer packaged goods) and healthcare. The Catalyst program is open to emerging angel investors who identify as Black, Latinx and/or women in an attempt to add more perspectives to the angel-investing community.

Application deadlines are July 8 (CPG) and August 16 (healthcare). Please take advantage of this opportunity to make more informed investments in Minnesota's earliest-stage founders and improve your chances to earn a return on your investment.

Learn more about the Catalyst cohort          

‍View the application questions          

‍Apply to the Catalyst cohort          

 FAQs (updated 6/28)

What makes a person eligible to become an angel investor?

• According to the Securities Exchange Commission: "Individuals may qualify as accredited investors based on wealth and income thresholds, as well as other measures of financial sophistication." Financial criteria include:
  • Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
  • Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonable expectations of the same for the current year.
• The Minnesota Angel Tax Credit provides a 25% credit to investors or investment funds that make equity investments in startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The maximum credit is $125,000 per person, per year ($250,000 if filing jointly). The credit is refundable.

What if I'm not eligible?

• That's OK, many Minnesotans are not.
• You can support the program by sharing information with friends and colleagues who might have the wealth or income to consider angel investing.
• The program also has seats available for people who connect startup founders with capital and want to learn more about the investor's perspective.

The Program Interest Form includes some personal questions about income and identity. Will Forge North/GREATER MSP/Groove Capital see my responses?

• Your responses will only be visible to TechTown Detroit staff; no one based in Minnesota will see any specifics.

When will the Catalyst programs take place?

• The cohort focused on CPG will kick off July 18 with an in-person breakfast, continue through August 26 with six on-demand online courses, and conclude with a graduation happy hour on September 12.
• The cohort focused on healthcare will kick off on August 28 with an in-person breakfast, host six virtual classes from September 17 to October 2 , and conclude with a graduation happy hour on November 7.
• Both cohorts will be invited to optional in-person events like the Angel Fest Fall Investor Rally (September 18 in Minneapolis).

What if I don't live near Minneapolis or Saint Paul?

• All the courses are virtual. If you can join a Zoom call, you can participate in the curriculum.
• The in-person events are encouraged, but optional. If you live in Greater Minnesota, check with your Launch MN Regional Hub for angel investor events in your area.

What will participants gain from the program?

• 6 virtual courses through Angel Capital Association's "Angel University" (all expenses paid & valued at $1,450)
• 2+ in-person events
• Angel Capital Association individual membership

If I join this program, will I have any obligation to become an angel through Groove Capital?

• No. The Angel Basecamp (which includes a great deal of useful information for people exploring angel investing) includes links to four Minnesota angel groups, including Groove. Investing solo or building your own angel group are also valid paths to support founders!