Minnesota Investment Network Changes Name to RAIN Source Capital; Launches Multi-state Network of Angel Investment Funds.

ST. PAUL, Minn. -- Minnesota Investment Network Corporation has changed its name to RAIN Source Capital. The new name reflects the company's expansion to work with angel investors in Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Washington, Oregon and other areas to form member-led RAIN(R) funds and invest in local companies.

There are currently 12 RAIN(R) funds, including eight in Minnesota, three in Iowa and one in North Dakota, and the company expects to have another 10 RAIN funds formed in the next two years.

"This multi-state network of angel investor groups will be able to leverage deal flow, expertise and resources throughout the area," said Steve Mercil, president and CEO of RAIN Source Capital. "Having worked with angel investors for the past 20 years, we have developed an approach and systems that help angel investors to successfully invest in companies. Our goal is to enhance the power of investing, by pooling the intellectual and financial resources of accredited individuals and institutional investors, and focusing that capital and expertise where it's most needed to support companies and community growth."

In addition to organizing interested angel investors, RAIN Source Capital(SM) services include providing new RAIN funds with capital investment; proprietary templates, worksheets and legal documents; ongoing management support; access to deal-flow and co-investors; and a thorough due diligence and monitoring process.

While the RAIN funds will help support angel investment throughout the region, they are particularly beneficial in bringing the power of angel investing to smaller communities that are home to emerging entrepreneurial companies, but are not typically targeted by equity funding sources.

"Entrepreneurs are creating jobs and wealth all over the country, not just in the larger metropolitan areas," said William H. Payne, an angel investor and an Entrepreneur-in-Residence at the Ewing Marion Kauffman Foundation. "The RAIN funds offer an especially unique model for providing much-needed capital to growing companies located in smaller communities, while bringing a proven process that makes it easier for angel investors to share the risk - and the work - involved in investing in companies."

The RAIN(R) network currently has more than $20 million invested in 40 companies. Funds range in size from seven to 61 members, who have pooled anywhere from $500,000 to $2 million. The fund members determine the kinds of companies they want to invest in, including specific industries or other special focus, the level of investments, and the kind of equity investment they will make.

"Angel investment groups can have an enormous difference in the number and quality of deals that angel investors can consider, as well as in the amount of potential capital available in a given region," said Marianne Hudson, director of angel initiatives for the Kauffman Foundation's Angel Capital Education Foundation, based in Kansas City, Mo. "Through their RAIN funds, RAIN Source Capital adds an excellent structure that makes investment options much more streamlined for angel investors. This also helps fill a huge capital gap for entrepreneurs."

Accredited angel investors, typically defined as individuals with income exceeding $200,000 and/or having a net worth of more than $1 million, play a critical role in funding growing companies. According to the Angel Capital Education Foundation, approximately 90 percent of outside equity capital in seed/startup stage companies comes from angel investors. Angels also invest more money in a greater number of companies than the venture capital community, and have a better record of companies that go public than those invested in by the venture capital community. In addition to money, angels invest time and expertise in companies that can help them be more successful.

"For angels trying to invest by themselves, the challenges can be daunting - from deal sourcing, reading plans, and conducting the necessary level of due diligence, to monitoring your investment and determining follow-on or exit strategies," said John Reid, a member of a Minnesota-based RAIN fund. "RAIN Source Capital provides a solid template that makes it possible for people who'd like to be active investors to step up to the plate. Through the RAIN funds, individual angel investors can share the expertise, the capital, the work, the risk and the financial and emotional rewards of supporting entrepreneurs, building growing companies, and having a positive impact on their community, as well as making money."

For additional information about RAIN funds and RAIN Source Capital (www.rainsourcecapital.com), call 651-632-2140.