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Angel Investor (Group)
rainsourcecapital.com

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Investments

28

Portfolio Exits

6

Funds

6

About RAIN Source Capital

RAIN Source Capital is a multi-state network of RAIN funds that works with angel investors who are interested in supporting growing companies. RAIN Source helps bring together like-minded angel investors to form individual RAIN funds ~ and then provides these funds with capital, a process for due diligence, legal templates, management support, access to deal flow and other resources.

RAIN Source Capital Headquarter Location

1600 University Avenue West Suite 401

Saint Paul, Minnesota, 55104,

United States

651-632-2140

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Latest RAIN Source Capital News

ACG partner RAIN Source Capital wins nearly $500,000 ARC grant

Jan 3, 2017

By Tom Ballard, Chief Alliance Officer, PYA RAIN Source Capital Inc., the not-for-profit partner of Knoxville-based Angel Capital Group (ACG), has been awarded a $499,480 grant under the federally-funded Partnerships for Opportunity and Workforce and Economic Revitalization, or POWER program. The award, announced in late 2016 , was one of 42 made under the initiative to assist communities negatively impacted by changes in the coal industry and power sector. The combined awards, totaling $28 million, come from either the Appalachian Regional Commission (ARC) or the U.S. Department of Commerce’s Economic Development Administration (EDA). In ACG’s case, the funding was awarded by ARC. “The Commission liked what ACG and RAIN Source were doing to help angel investors organize,” Eric Dobson, ACG Chief Executive Officer, said. “We will take that proven approach and create angel funds throughout the region to spur economic development in coal-impacted communities.” Dobson noted that Steve Mercil, Founder of RAIN Source, has been working with ARC on “one-off” projects for several years. His organization combined with ACG about the same time he started working with ARC as noted in this teknovation.biz article from early 2015. “ARC has given us a two-year grant to create a more coherent program,” Dobson explained. “This is a big deal for us, and we are thrilled to be working with the ARC.” The announcement describes the ACG project as creating the “Appalachia Angel Investor Network” with a focus on nine of ARC’s 13 states adversely impacted by the decline in the coal industry. The stated goal is to create at least four new angel funds in target communities and provide tools, training, and support services to existing angel funds and networks already operating in Appalachia. ARC says the project will result in the creation of 20 new businesses and 100 new jobs, and will leverage $4,000,000 in private investment from 100 investors. Dobson believes those numbers are for the short-term. “ACG and RAIN Source combined have invested $46 million in 140 companies, creating 4,500 jobs and securing $900 million in follow-on capital,” he says. “Now, we are focused on doing the same for the Appalachian region.” In essence, ARC is leveraging the existing expertise of ACG, particularly its work and relationships in the Mississippi River Valley (from Minnesota to Louisiana) and in the Appalachian region (as far north as Western New York and as far south as Alabama and Mississippi). “ACG recognized that we were sharing industry best practices and some of our own particular methods for researching investments with angels that were eager to become more professional in the way they approached investing in start-up and early stage companies,” ACG’s Scott Ewing said, explaining that “professional” means aspiring to excellence in all aspects of investment. “We believe that successful angel investors in a specific place cause others in that locale to become encouraged toward entrepreneurial business,” he added. “Our hope is that success will breed further success in places that, until recently, have not been known for technology-based or tech-enabled entrepreneurship.” In addition to educating would-be angels on how angel and venture investing works and assisting in the organizing of new funds, ACG will also mentor angels on a variety of topics including fund strategy, due diligence, marketing and outreach, and syndication. “The last item is particularly important, as one of the factors limiting entrepreneurial activity throughout the region has been a scarcity of investors that specialize in early-stage technology deals,” Ewing explained. ACG has been on a roll as noted in this recent article in teknovation.biz that summarized its highly successful 2016.

RAIN Source Capital Investments

28 Investments

RAIN Source Capital has made 28 investments. Their latest investment was in Hotify Technologies as part of their Angel on December 12, 2015.

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RAIN Source Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

12/28/2015

Angel

Hotify Technologies

$0.15M

Yes

1

8/15/2013

Convertible Note

Inovus Solar

$1.59M

No

1

12/15/2009

Series C

Sage Electrochromics

$5M

No

1

10/20/2009

Series A

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$99M

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0

8/7/2009

Series J

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$99M

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0

Date

12/28/2015

8/15/2013

12/15/2009

10/20/2009

8/7/2009

Round

Angel

Convertible Note

Series C

Series A

Series J

Company

Hotify Technologies

Inovus Solar

Sage Electrochromics

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Amount

$0.15M

$1.59M

$5M

$99M

$99M

New?

Yes

No

No

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Co-Investors

Sources

1

1

1

0

0

RAIN Source Capital Portfolio Exits

6 Portfolio Exits

RAIN Source Capital has 6 portfolio exits. Their latest portfolio exit was Hotify Technologies on April 25, 2019.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

4/25/2019

Acquired

$99M

1

2/17/2017

Acquired

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$99M

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10

11/16/2010

Corporate Majority

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$99M

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0

3/27/2010

IPO

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$99M

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0

8/1/2000

Acquired

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$99M

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0

Date

4/25/2019

2/17/2017

11/16/2010

3/27/2010

8/1/2000

Exit

Acquired

Acquired

Corporate Majority

IPO

Acquired

Companies

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Valuation

$99M

$99M

$99M

$99M

$99M

Acquirer

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Sources

1

10

0

0

0

RAIN Source Capital Fund History

6 Fund Histories

RAIN Source Capital has 6 funds, including Pine to Prairie Fund.

Closing Date

Fund

Fund Type

Status

Amount

Sources

11/1/2008

Pine to Prairie Fund

Early-Stage Venture Capital

Open

$1M

1

12/31/2006

Northern Plains Investment

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$99M

10

RAIN Leasing Fund

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10

RAIN State and Regional funds

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10

Invest Northwest Fund I

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10

Closing Date

11/1/2008

12/31/2006

Fund

Pine to Prairie Fund

Northern Plains Investment

RAIN Leasing Fund

RAIN State and Regional funds

Invest Northwest Fund I

Fund Type

Early-Stage Venture Capital

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Status

Open

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Amount

$1M

$99M

Sources

1

10

10

10

10

RAIN Source Capital Team

7 Team Members

RAIN Source Capital has 7 team members, including current Founder, Chief Executive Officer, President, Steven Mercil.

Name

Work History

Title

Status

Steven Mercil

Founder, Chief Executive Officer, President

Current

Steven Mercil

Chief Executive Officer

Current

Clifford Smith

President

Former

Peter A Birkeland

Accenture, and Arthur Andersen

Chief Financial Officer

Former

Robert Severson

Chief Financial Officer

Former

Name

Steven Mercil

Steven Mercil

Clifford Smith

Peter A Birkeland

Robert Severson

Work History

Accenture, and Arthur Andersen

Title

Founder, Chief Executive Officer, President

Chief Executive Officer

President

Chief Financial Officer

Chief Financial Officer

Status

Current

Current

Former

Former

Former

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