Groove Capital, a Minneapolis-based pre-seed investment firm and angel-investing association, is leading a local cohort to connect emerging angel investors who are women or people of color as part of a regional program.
The inaugural cohort, made up of 30 individuals who are accredited investors with fewer than two years of experience, kicked off this week. The Minnesota-based cohort is part of the Catalyst Angel Program by TechTown Detroit, a nonprofit that provides resources for small businesses and startups in Detroit. The program aims to help minority emerging angel investors within the Great Lakes region, encompassing Minnesota, Michigan, Illinois, Indiana, Ohio and Wisconsin, learn about investing and connect with investors at no cost. Participants attend virtual courses through the Angel Capital Association, according to a description of the program by Groove.
But Groove intends to take it a step further by building up the collaboration piece in the form a cohort for the individuals, mostly drawn from the Twin Cities, who are participating in the program, said Mickayla Rosard, head of platform for Groove. The participants will connect in-person within the cohort and the broader Twin Cities community, including with veteran angel investors, she said.
In addition to courses, in-person events will take place, such as a rally and kick-off event during Twin Cities Startup Week, Rosard said. A graduation is planned for November.
The program, including six different courses, runs through the end of October. The courses cover topics like investing fundamentals, term sheet basics and valuations.
The cohort is intended to build community for such investors who often are missing within the angel investor ecosystem: those of color and women, Rosard said.
The more participants, particularly those of color and women, in angel investing means more funding for those founders, too, she said. “It matters who's writing those checks,” Rosard said.
The program also provides information about the angel investing landscape to reduce barriers to access, she said. “Angel investing can feel very scary, it can be daunting and theres a lot of questions that naturally come up,” Rosard said.
Samantha Decker, one of the cohort’s participants, who is also director of alchemy for Minneapolis-based investment firm Riverbridge Partners, said she wants to be an active angel investor in the future to ensure "entrepreneurs have the opportunity to succeed." Experiencing what it was like to work at an early-stage startup and starting her own business, Decker recalled how difficult it can be financially and emotionally.
Those interested in signing up for the program can no longer be part of the Minnesota cohort this year, but can still apply for the program through TechTown Detroit, which accepts participants on a rolling basis. Groove intends to make the cohort an annual part of its programming, Rosard said.
