Business

Eastern Iowa angel investor group launches

Corridor Angel Investors wants to have more than 50 investors by year's end

Eric Engelmann, executive director of NewBoCo and founder of Geonetric in Cedar Rapids. (Jim Slosiarek/The Gazette)
Eric Engelmann, executive director of NewBoCo and founder of Geonetric in Cedar Rapids. (Jim Slosiarek/The Gazette)

CEDAR RAPIDS — Cedar Rapids’ resident start-up development group is launching a group for accredited investors in the area to put money into new Iowa businesses.

The New Bohemian Innovation Collaborative announced the start of Corridor Angel Investors Monday. The group intends to bring together angel investors — typically individuals who invest small amounts into money-seeking start-ups.

NewBoCo hopes to have 50 to 100 angels in the group by the end of 2017.

NewBoCo Executive Director Eric Engelmann said Corridor Angel Investors is intended to better connect start-ups with potential investors and do it more quickly.

“There are investors right now. There are good start-ups right now. Deals get done now, but it’s all one off, one-at-a-time and it’s generally not a particularly organized process,” Engelmann said.

Cedar Rapids contributed $20,000 to NewBoCo to hire a director for Corridor Angel Investors, Economic Development Manager Jasmine Almoayed said in an email.

Corridor Angel Investors is not a fund, Engelmann said. The organization will create a network to streamline the investment process for both investors and start-ups. Investors then will choose who or what they invest in.

Engelmann said NewBoCo’s plan is to eventually create a fund associated with the angel network.

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Overall, Corridor Angel Investors is looking to invest up to $500,000 in a deal, according to a statement.

Similar angel investor groups exist throughout the Midwest, including Des Moines-based Plains Angels, Nebraska Angels and Gopher Angels in Minnesota.

l Comments: matthew.patane@thegazette.com

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