Forge North, an initiative of Greater MSP focused on boosting Minnesota's startups, and Groove Capital, a pre-seed investment firm and angel-investing association, are teaming up for an event that aims to broaden the number and backgrounds of angel investors in the Minnesota.
On June 2, the two organizations will host Angel Fest, an event focused on shifting the culture of who angel investors are — and subsequently who gets funded by angel investors.
Angel investing refers to financial backers who support startups early in a company’s development. The title is limited to accredited investors, or people with a net worth above $1 million or an annual income above $200,000.
Tens of thousands of Minnesotans make over $200,000 annually, according to the Census Bureau. However, the state only had 432 active angel investors in 2021, according to a report by the Minnesota Department of Employment and Economic Development.
The immediate goal of Angel Fest is to grow the number of angel investors in Minnesota, especially in groups that traditionally haven’t participated in angel investing, such as minorities and women. Long-term, this new cohort will strengthen the startup ecosystem in the state by diversifying which companies and founders get funding.
Matt Rowe is one angel investor bringing a new perspective to the field. Rowe was motivated to become an angel investor after assessing what equity looks like in Minneapolis following the murder of George Floyd in 2020.
Rowe had experience volunteering and working with nonprofits, but questioned what was beneficial and if his efforts actually helped move the needle in terms of equity.
Rowe said he believes underrepresented founders are a good investment because they display grit. “If we’re looking at probabilities of who’s going to make it, I’m going to invest in the people who have had to grind and deal with these injustices."
Rowe is now a limited partner in Tundra Ventures, a Minneapolis-based venture firm founded earlier this year that aims to invest in early-stage, underrepresented founders from diverse backgrounds.
Lynn Langit is another socially motivated angel investor. The software architect has been heavily involved in the startup ecosystem, but only began angel investing in 2021. Langit said she saw angel investing as an opportunity to affect change on Minneapolis as it emerged from the pandemic.
The first check Langit wrote was for TurnSignl, the Minneapolis-based startup that provides real-time legal guidance to drivers involved in law enforcement interactions. Langit said she’s really proud to have invested in TurnSignl because it’s a company that combines social impact with people who have the skills to execute the business model.
