RAIN MAKER: PERFORMANCE SUPPORT RESOURCES AND TOOLS FOR REGIONAL ANGEL INVESTMENT NETWORKS

Equity capital markets are unorganized or non-existent in rural areas with most capital directed outward. Emerging growth companies have difficulty obtaining equity capital - precisely the kind of companies that rural America must develop to increase earnings or workers. The key to attracting investment of capital and know-how to rural areas is to create regionally-based organizations capable of capitalizing and managing equity investment funds. Then, to build the capacity of these organizations to 1) evaluate the potential of opportunities, 2) work with companies in assembling an effective board of director, and 3) connect and work with extralocal and expatriate investors of capital and know-how. Phase II research will develop and test performance support resources to build these capabilities within regional investment groups. The work will build on the regional Angel Investment Networks (RAIN) model developed by the Minnesota Investment Corporation for the purpose of forming, capitalizing and fiscal management of investment funds. Performance support resources and tools to be developed include 1) Internet-based due diligence tools, 2) resources for working with companies in forming and working with effective board of directors, and 3) an information infrastructure enabling collaboration between a company, its board and outside investors of money an know-how.