Wisconsin-based venture capital firm gener8tor Management LLC is known for its prestigious equity startup accelerator programs and the dozens of free early-stage entrepreneurship programs it runs nationwide.
But the firm is also affiliated with a lesser-known angel investment group — gANGELS — that recently backed two fast-growing companies in southeast Wisconsin.
Formed in 2019 and led by gener8tor investor Nicole Justa of N29 Capital Partners LLC of Manitowish Waters, gANGELS now has close to 70 members — most of which are in Wisconsin, Justa said. Last year, the group backed 10 companies, six based in Wisconsin, with investments totaling around $1 million, she added.
"I would say we really hit our stride last year," Justa said. "I've been able to get a bigger membership base with it being virtual now."
So far this year, gANGELS has invested in Beloit's Blue Line Battery, which announced a $3.1 million seed financing round last month with participation from several other active Wisconsin-based angel investing groups, and Milwaukee's Xena Workwear Inc., which recently announced an $850,000 capital raise.
Justa started gANGELs after a conversation with gener8tor co-founder Joe Kirgues about how to get more investors to back the startups that go through gener8tor's accelerator programs, Justa said. Founded in 2012, gener8tor has served more than 800 companies to date.
gANGELs primarily hears pitches from companies that have gone through a gener8tor accelerator or one of its gBETA programs. Its first investment was in Milwaukee-based supply chain technology startup PAXAFE Inc., Justa said. Its portfolio also includes Spanish-language auto insurance provider Sigo, Madison renewable chemicals firm Pyran Inc., Middleton community engagement platform Polco, personal care product maker American Provenance from Mount Horeb, and Milwaukee's Agricycle Global.
The angel group meets five times per year and is open to accredited investors. The expected minimum individual investment is $3,000 for each company a member chooses to back and a total investment of at least $10,000 annually, Justa said. Collectively, Justa aims for the group to invest at least $50,000 in each company.
N29 Capital Partners, the angel investing firm Justa runs with Madison commercial developer Carl Ruedebusch, also invests in some of the gANGELS portfolio companies.
Justa, who was previously a financial adviser at U.S. Bank, would like to see gANGELS continue to grow its membership base, she said.
