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Local Painter’s Bucket List Doesn’t Cut Corners

Each month the James J. Hill Center interviews 1 Million Cup presenters for the Startup Showcase feature in the Pioneer Press.  Recently we connected with presenter Ben Hildre. See interview as seen in the Pioneer Press Startup Showcase originally posted on April 7, 2017.

The painting industry generates more than $31 billion in revenue each year, but it is estimated that only 5,500 new painting jobs will be created in the next decade. With high demand and a small labor force, there is not much time for innovation in the industry. But a company in Minnesota is looking to change that.

Bucket Tools has a new invention to cut painting time, costs and is better for the environment. Ben Hildre is looking to shake up the industry, and help his team improve and grow.

 

ENTREPRENEUR PROFILE

Name: Ben Hildre
Age: 35
City you live in: Athens Township
City of birth: Coon Rapids
High school attended: St. Francis High School

COMPANY PROFILE

Name of company: Bucket Tools LLC
Website: www.buckettoolsllc.com
Twitter: @BucketEdge
Business Start Date: March 2014
Number of Employees: 2 (Hildre and partner, Sean Erickson)
Number of Customers: Goes up everyday

 

Q&A

Q. What led to this point?

A. I’m a creative guy who enjoys living life to the fullest. However, “real” life started a little earlier than I anticipated. I found out I was going to be a dad my last semester of high school. That kicked my butt in gear and kept me working as a painter. Over the years I kept painting and then started my own company in 2007. I invented the Bucket Edge the winter of 2014.

The Bucket Edge was created with two main goals in mind. First, I needed a tool that would help expedite or eliminate the need to tape off rooms. As owner of my own painting company, I noticed that countless man-hours and endless amounts of tape were being used at each jobsite. There was so much waste product created, which led me to my second goal. To create a product that would reduce the amount of waste put into landfills and be better for the environment. The Bucket Edge is meeting both of those goals.

Q. What is your business?

A. Bucket Edge is multi-use painting tool to cut down on costs of taping off woodwork before painting. The Bucket Edge was created to cut down on materials and time when painting practically anything, anywhere. As owner of my painting company, Bucket Painting LLC, I have already noticed significant savings. Costs have gone down almost 80 percent on tape alone. There is no need to keep buying sleeves of tape spools on every job. The savings don’t stop there. My labor costs and set up times have also decreased.

It’s almost like tape and dropcloth in one because of the length it extends off the wall. Tape only protects an inch and a half away from the wall, (Bucket Edge) gives you over 13 inches to save from paint splatters. It will pay for itself and give you money back in your pocket the more you use it.

Q. Where do you go for help when you need it?

A. My partner, Jessica; we have been together for 14 years. She is always there to cheer me on or pat me on the back when something doesn’t work.

Q. What is the origin of the business?

A. It is kind of a funny story. It was back during the foreclosure craze.  I painted lot of dirty houses where tape didn’t stick. One night I came home and was watching “Shark Tank” on ABC with my oldest daughter. Someone made a great deal with one of the “sharks” and Hannah looked over and said, “Dad, you think you’re so smart, create something to put me through college!” I turned to her with a devilish smirk and said “Fine I will, but I’m going to use money for a boat instead.” We have great sense of humor in my house. The next day, I show up to my jobsite and all the taping I had put up had fallen down. What my daughter said sparked the light bulb in my head. That day I drew up the first draft of the Bucket Edge….READ FULL ARTICLE

 

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 8AM – 4PM, Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.jjhill.org

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It All Adds Up: Assessing the Importance of Emotional Capital

Junita Flowers is a writer, speaker, entrepreneur, mom and the owner of Favorable Treats. With more than 20 years of experience working with nonprofit organizations, she spent her career advocating for families and leading social change initiatives. She shares her thoughts and experiences with us in her monthly blog series “It All Adds Up.”

 

Later this month, I will moderate Taking the Lead, a panel discussion for women in business, on the topic of accessing and raising financial capital, so I thought it was especially fitting to take a few moments to share my perspective on the importance of raising an additional source of capital…emotional capital.

When describing entrepreneurship, I often hear words like passionate, visionary, dreamer, inspired, optimistic, etc. Words that describe strong emotions…emotions that produce great results. Yet, there is still a strong sentiment communicated, that “emotions have zero place in business.” As a woman in business and a solo parent, I remember meeting with a small business advisor who “advised” me to postpone starting my business and focus on raising my family because the emotional demands of managing both are extremely tough. At that time, I didn’t have a term for it, but that interaction was my first introduction to the importance of emotional capital as an entrepreneur.

Emotional capital is simply the ability to build and sustain strong relationships that ultimately lead others to want to work with you, buy from you, support you and to conduct business with you. Clearly, the business advisor from my example didn’t understand the importance of emotional capital in building a trusting advisor/advisee relationship and the overall impact to the business financials. That interaction was my first and last as that advisor’s business client.

Emotions are a piece of the equation in everything we do and should be positioned as a valuable commodity in creating strong and thriving businesses. As a social entrepreneur, emotional capital is at the core of my work. Emotional capital is an asset that, over time, becomes the differentiator which aids in my ability to build meaningful and mutually beneficial relationships, allows me to strengthen my influence, is the foundation to create a trustworthy brand and is ultimately a positive impact on my business financials.

In addition to a solid business foundation, growing and maintaining a financially strong and profitable business must prioritize the importance of emotional capital. Whether purchasing cookies from my cookie company or hiring me to speak at an event, every potential customer will want to conduct business with me based on how they feel when interacting with my products and services, and for me, that is the result of successfully raising emotional capital as an entrepreneur.

I would love to hear from you. How does emotional capital fit in your business operations? You can share your perspective with me by clicking here.

 


You can read more about Junita Flowers on her website favorabletreats.com. You can also follow her on Facebook and Instagram.

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A Technological Step Forward for Seniors

Each month the James J. Hill Center interviews 1 Million Cup presenters for the Startup Showcase feature in the Pioneer Press.  Recently we connected with presenter Peter Chamberlin. See interview as seen in the Pioneer Press Startup Showcase  originally posted on March 24, 2017.

According to the Center for Disease Control and Prevention every second of every day an older adult falls, making falls the No. 1 cause of injuries and deaths among older Americans.

With more than 10,000 older Americans turning 65 each day, the number of fall-related injuries and deaths is expected to surge.  Physical therapists and other health care professionals have very little information about a patient’s everyday life, which doesn’t allow for proper assessment of treatment and demonstration of improvement.

Families are also constantly worried about their loved ones living at home. Peter Chamberlain was one of those family members and wanted to ensure his grandparents lived a healthier and longer life. The creation of WalkSmart was the best step to making that mission real. Since 2016 he has been working to help provide peace of mind to generations.

 

ENTREPRENEUR PROFILE

Name: Peter Chamberlain
Age: 26
City you live in: Grand Forks, N.D.
City of birth: Salem, Ore.
High school attended: South Salem High School
College attended: Undergrad: The University of Portland; Graduate: Massachusetts Institute of Technology (MIT)

COMPANY PROFILE

Name of company: WalkSmart
Website: Walksmart.io
Business Start Date: March 2016
Number of Employees: 1
Number of Customers: 5

 

Q&A

Q. What led to this point?

A. As an engineer, I have always been fascinated by how technology and innovation can solve some of the world’s toughest challenges. Every project I’ve done has been has focused on helping people, whether it was building the world’s first Hyperloop pod for fast transportation, designing a medical device to keep kids from getting hypothermia during Jaundice treatment, or starting the MIT Water Innovation Prize to reward those with innovation solutions. I saw a way that I could help my grandparents with new technology, and I took the leap.

Q. What is your business?

A. WalkSmart is about helping people maintain their independence and saving lives. People who use walkers are one of our most vulnerable and costly populations, yet few innovations have succeeded in reducing falls and improving care collaboration. With proper design and market focus, I think this can change.

WalkSmart is the world’s first smart walker attachment. It monitors motion throughout the day and night without the need for charging, (like) a smartphone, or a wearable, eliminating many of the adherence issues faced by existing devices. The device acts as a traditional fitness tracker, but it also alerts families and caregivers when a person may have fallen, had a stroke, or have a urinary tract infection. The implications for therapy, home care, and senior living are massive…READ FULL ARTICLE

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 8AM – 4PM, Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.jjhill.org

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America’s Seed Fund

For startups, financing can be challenging, and often the biggest barrier. Each month we’re focusing on a different financing option in Minnesota for startups and featuring experts in the field. 

From innovation, entrepreneurship and commercialization, America’s Seed Fund has helped startups and small businesses transform their ideas into marketable products and services. America’s Seed Fund focuses on high-risk, high-impact technologies — those that show promise but whose success hasn’t yet been validated — and each year, nearly $2.5 billion in non-dilutive funding are available from the congressionally mandated programs – Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR).  These programs support commercialization of technically risky ideas with research interests and budgets varying among the 11 federal participating agencies.

MN-SBIR, a program of the Minnesota High Tech Association, is the State’s focal point to assist seed, early stage, emerging and existing firms (1-500 employees) to successfully access funding through the SBIR/STTR programs. MN-SBIR’s goals are to foster innovation and help create businesses and jobs in Minnesota.  MN-SBIR assists companies with proprietary technology, which refers to technical innovations that are unique and legally owned or licensed by a business, including innovations that are patented, patent pending, a subject of trade secrets, or copyrighted across the spectrum of science, technology and engineering, and multiple industrial sectors.

MN-SBIR provides outreach, education and coaching to companies to research, develop and commercialize world class technologies for social and economic benefit.  MN-SBIR is funded in part through a Cooperative Agreement with the U.S. Small Business Administration, Minnesota Department of Employment and Economic Development, University of Minnesota, Office for Technology Commercialization and the Minnesota High Tech Association. To learn more click here: Minnesota High Tech Association.

Ms. Pat Dillon is the director of MN-SBIR. She is responsible for the strategic direction and leadership and its services to seed, startup and small businesses in Minnesota. Dillon has consulted with hundreds of businesses to support technology innovation and commercialization in science and technology sectors important to state and national economies.

For more information about MN-SBIR please visit the website or follow them on twitter @MHTA.

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Beautiful Solutions to Everyday Problems

In celebration of Women’s History Month we have reached out to a variety of female entrepreneurs to share their journey and give some insight on how to navigate building a business.

Marj Weir is a designer and innovator with extensive experience and a creative entrepreneurial background. Her mission is to create beautiful solutions to everyday problems.

How did your entrepreneurial journey begin?
I started as a freelance graphic designer over 30 years ago, though I worked part time at the State for insurance and a steady paycheck. In 2004 I quit to get my product, Prep & Serve to market. My husband at the time had a great job as a chef, but later was let go. We filled out time rehabbing homes, opened Sail Away Cafe, and I also did real estate on the side.

Current projects and or business ventures you are working on?
My current products are PrepAndServe.com, EZBarBox.com and EZLightWraps.com. Last week I met potential licensing partners and investors at the International Housewares Show in Chicago. This weekend, I’m at the Minneapolis Convention Center for EZLightWraps.com in the Twin Cities Women’s Expo, then the Home and Garden Show the following two weekends.

Most important things to consider when starting a new venture or start up?
Partner with others with dissimilar talents early on – it is a long road ahead. Do research and ask yourself is there a market? Do research at the Hill! Join Meet-ups and trade groups, from competitive products or ventures. Survey people – share your ideas to get real feedback.

As a women in the industry what opportunities or barriers have you experienced?
It’s amazing to me that men totally run the housewares industry, where most products are used by women. I was told early on – ‘you need a penis to play in that field’ – they were not kidding. There is change, but slow. What I saw last week at the Housewares show are more product startups, many founded by women. Personally, I’ve had more men than women help move things forward.

What women have made the biggest impact on your entrepreneurial career so far?
My mother, who is very creative; my friend Angie Polacek, who co-founded a manufacturing company and invested in rehabbing homes with me; and Marie Forleo’s B School has been a great resource.

What advice would you give to other female entrepreneurs just getting out of gate?
Keep track of connections and categorizing them. Someone may be the person you need down the line and it is frustrating to lose track of them.

What advice would you give to female entrepreneurs that are stuck or have had their first failure?
In the entrepreneurial world failure is not looked down upon, it depends on what you learned from the experience and where you went after. Remember it is the journey, not the end!

What is different about Minnesota and the entrepreneurial ecosystem?
Still mostly male, medical and tech, but it is great to be in the Midwest, feels safe and people like to help.

Has the Hill center played a role in your success as a female entrepreneur?
Yes, I’m armed with the research to validate ideas. I’ve spoken several times at 1 Million Cups and continue to meet great connections that way.

To find out more information about Marj Weir Products please visit marjweirproducts.strikingly.com.

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It All Adds Up: Top Three Traits of a Coachable Mentee

Junita Flowers is a writer, speaker, entrepreneur, mom and the owner of Favorable Treats. With more than 20 years of experience working with nonprofit organizations, she spent her career advocating for families and leading social change initiatives. She shares her thoughts and experiences with us in her monthly blog series “It All Adds Up.”

As a social entrepreneur, I’ve reached a point on my business journey, where in addition to being profitable, my benchmarks for measuring meaningful success are based on leading with integrity, being kind and choosing to serve the community in which I live and work.

While there are countless workshops, seminars, training and networking opportunities designed to create a road map to reach and measure those benchmarks, one of the best resources for supporting my growth was seeking out and building a relationship with a business mentor.

Initially, when I began the process of seeking out a mentor, my concept of this unique relationship was based on childhood experiences. A mentor/mentee relationship was designed to celebrate, encourage and gently guide the mentee. After some initial research and several conversations, I discovered that most professional mentor/mentee relationships are less about offering support and encouragement and everything about honesty and tough love.

I’ve learned a lot and grown a lot from having a mentor and I would highly recommend it as a must-have relationship for every entrepreneur. As I think back to the early days of my relationship with my mentor, I’m sharing the top three traits that made me a coachable mentee.

1. Personal desire to learn and grow — Since I was a young girl, I’ve always been identified as or put into the role of a leader. While there were times when I felt the pressure to lead, I was also driven to continuously seek out opportunities for growth. Having a growth mindset and a willingness to learn communicated to my mentor that I valued their commitment to my professional development and allowed me the opportunity to maximize their time investment.

2. Willingness to receive feedback AND take action — While a mentor ultimately wants to see you succeed, a mentor’s primary role is not to be a cheerleader and supporter. The most valuable pieces of advice I received from my mentor were often the toughest lessons to hear. My mentor challenged me to do things differently and to be open to change. I consistently welcomed and accepted the advice and committed to take the appropriate action to achieve better results.

3. The ability to embrace failure as valuable learning opportunities — As I’ve mentioned before, failure is a part of the growth and success process. It comes with the territory. If I’m not failing at least occasionally, then I’m not growing and I’m not challenging myself. My mentor served as a resource as I learned to accept failure as much as I accepted the wins. Having a safe space to work through failure, ultimately led me to accept my failures as a prerequisite for strength building.

I would love to hear from you. Have you developed a successful mentor/mentee relationship? If so, which traits have made your relationship a success?


You can read more about Junita Flowers on her website favorabletreats.com. You can also follow her on Facebook and Instagram.

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Ballet + Boxing: How to Create (a) Movement

Check back each month for the Original Thinker Series as we explore local innovation in entrepreneurship, the arts, and our community one pioneering mind at a time.

“I think it was really curiosity that brought us together,” says Zoé Emilie Henrot, the Artistic Director at St. Paul Ballet. The “us” she refers to is a partnership between her dance company and their next door neighbors: Element boxing gym. “We decided not to be cold neighbors, we decided to be in each other’s lives and that is what started it.”

In 2014, St. Paul Ballet needed room to grow and began leasing studio space from Element Boxing & Fitness. Since then the two organizations have been making waves through a dynamic collaboration which has included interdisciplinary training, co-performances, and a Knight Foundation award. “As we continue to progress, we want to become a symbol for unity,” says Dalton Outlaw, CEO and Founder of Element. “If we are all neighbors, if we all exist together, why can’t we work together?”

Both boxing and ballet enjoy rich traditions within the history of human movement. There have been other examples of cross-training between ballet dancers and boxers but the bond that St. Paul Ballet and Element share is something rare and wonderful. “If you are open to giving and receiving a lot can happen,” says Zoé. “In moving together, in figuring out how to be on stage, how to make it work, spending time together and getting to know each other – that’s created this whole community.”

The James J. Hill Center recently hosted a public screening of The Art of Boxing, the Sport of Ballet – a live experience co-directed by Zoé and Dalton. The performance allows audiences to contemplate both boxer-as-artist and dancer-as-athlete in a celebration of movement that is almost sacred in tone. “It’s not about being judged. It’s not about looking a certain way. In those moments when we are performing together it is about feeling,” says Dalton.

Next on the horizon for these two organizations is a ‘movement space’ for the people of Saint Paul. Zoé and Dalton share a vision for a place where anyone can come to experience not only the freedom to move but the freedom that comes from movement. This facility would house their studio and gym and be available for the community to gather. “We’ve talked a lot about windows, I think a lot of stereotypes come from not seeing other people or watching them move in space,” says Zoé.

What is it that has allowed such a unique partnership to develop here? What makes Zoé and Dalton ‘original thinkers’ is something very fundamental: human curiosity. Proximity only leads to partnership when we allow ourselves to be open to the other and to find value in what they bring to the table (or, in this case, the studio/gym). “It’s not just about sport or art,” says Dalton. “It’s about people.”

Catch another performance of The Art of Boxing – The Sport of Ballet at the Ordway on Sunday, April 15th. Tickets and more information available here


Written by Christopher Christenson, Marketing & Events Coordinator, at the James J. Hill Center. Have an idea of a person or organization to feature in this series? Send your recommendations to
christopher@jjhill.org.

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An Online Plan to Modernize Age-Old Shipping Industry

Each month the James J. Hill Center interviews 1 Million Cup presenters for the Startup Showcase feature in the Pioneer Press.  Recently we connected with presenter Tom Venable. See interview as seen in the Pioneer Press Startup Showcase on March 10, 2017.

According to the Inland Waterways section of the 2017 American Society of Civil Engineers Infrastructure Report, the waterway system supported “more than half a million jobs and delivers more than 600 million tons of cargo each year, about 14% of all domestic freight” and “between 2000 and 2014, the average delay per lockage nearly doubled from 64 minutes to 121 minutes.”

While delays are inevitable, freight shippers and receivers do have an opportunity to maximize their margins by making sure they limit (or eliminate) miles when a cargo container is empty. Enter Basin Commerce, offering technology to a business that currently relies heavily on low-tech solutions, to save time, money and headaches.

ENTREPRENEUR PROFILE

CEO/co-founder: Tom Venable
Age: 56
City you live in: Excelsior
City of birth: Peoria, Ill.
High school attended: Edina High School
College attended: University of Minnesota

COMPANY PROFILE

Name of company: Basin Commerce
Website: www.basincommerce.com
Twitter: @basincommerce
Business start date: October 2016
Number of employees: 9
Number of customers: 15

Q&A

Q. What led you to this point?
A. I have over three decades of experience starting and managing software companies all over the country. Most notably in the Twin Cities, I was SVP of sales for Digital River for most of the ’00’s.

In 2016, I met one of my business partners who was a lifelong commodities trader. Scott Stefan explained to me the inefficiencies of the bulk freight market and I explained to him the efficiencies of ecommerce techniques. So we teamed up to create the first and only on-line marketplace for bulk freight transportation services.

It is the story of a commodity guy meets an ecommerce guy in a bar one night, and thus Basin Commerce was born.

Q. What is your business?
A. Based on the shores of Lake Minnetonka, Basin Commerce aims to increase the utilization of the U.S. Waterway System for the transport of bulk materials and other heavy loads that are typically moved via rail and trucks. We do this through an online service similar to Uber or Expedia. At ibookfreight.com a “shipper” can request pricing for moving large quantities of bulk commodities from a myriad of suppliers across the country using the Inland Waterways System.

Q. Where do you go for help when you need it?
A. My three co-founders and a network of trusted advisers I have built up over 30 years.

Q. What problems does your business solve?
A. The manual, cumbersome process of finding, buying and managing bulk freight services via barges and trucks.

Q. What big obstacle or hurdle did you have to overcome?
A. We have to overcome the hurdle of changing human behavior in an industry that has been around for over 100 years.

Q. What personal strengths or skill sets do you bring to the business?
A. Sales, leadership and the understanding of how to build a software company.

Q. What are you most proud of?
A. Besides my 33 year marriage and three adult children it would be the speed by which we were able to launch Basin Commerce and start generating revenue quickly….READ FULL ARTICLE

 

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 8AM – 4PM, Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.jjhill.org.

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Delivery Services Could Pivot on His Invention

Each month the James J. Hill Center interviews 1 Million Cup presenters for the Startup Showcase feature in the Pioneer Press.  Recently we connected with presenter Michael Lopez. See interview as seen in the Pioneer Press Startup Showcase on February 24, 2017.

According to Statista, as of 2015 there were 15,771 independent inventors — just in Minnesota. This community is comprised of industry pioneers and innovators conceiving everything from inventions and products, to new ways of impacting our ecosystem. No matter the stage these inventors and entrepreneurs are at, they all started with an idea.

As famous scientist Albert Einstein said, “A person who never made a mistake never tried anything new.” Michael Lopez has taken his invention, Halo Ramp, through many iterations and has found success through hard work, creativity and a passion for re-imagining an industry.

ENTREPRENEUR PROFILE

Name: Michael Lopez
Age: 33
City you live in: North Minneapolis
City of birth: Chicago
High school attended: Osseo
College attended: Vincennes University, Indiana, and University of Hawaii

COMPANY PROFILE

Name of company: Halo Ramp Co.
Website: haloramp.com / @haloramp
Business Start Date: June, 2015
Number of Employees: 4
Number of Customers: 8

Q&A

Q. What led to this point?
A. My path began by following my sincerest passion, entrepreneurialism. As far back as I can remember I have been surrounded and influenced by immigrant entrepreneurs. My mother’s first marriage was to a Zambian man who was very entrepreneurial. From him I learned to develop a relentless drive, how to focus and structure business.

I was very insightful and independent as a youth. After graduating from high school I started a security and marketing company. I would contract out for private events locally and nationally, I would also provide marketing for local charter high schools helping increase their attendance and decrease attrition. I took all of those experiences and successes and formed my own transportation company providing a niche service. Along the way I became an inventor, an author and a mentor. My business Halo Ramp benefits not only the company’s bottom line but the backs of those who put in the labor.

Q. What is your business?

A. Halo Ramp is the world’s most innovative transportation delivery ramp. It redefines delivery transportation and will forever change delivery logistical planning and coordination. It is a patented safety platform using universal technology that gives portable delivery ramps the ability to pivot left or right with a total range of 120 degrees accommodating an easier and more efficient, safe delivery.

The Halo Ramp allows a user to bypass curbs and stairs that are slippery, wet, frozen, or loose and unpaved surfaces or walkways. It increases product delivery volume, customer satisfaction, delivery times and decreases the amount of stress on the user’s body, enhancing overall employee safety.

Q. What is the origin of the business?

A. The idea for Halo Ramp was first thought of after working a job as a delivery person and slipping on the curb during a snow filled evening. Then a coworker slipped and fell, only he fell from a higher distance and hurt himself much worse than me. I thought it would be a positive challenge to take on the opportunity to help others get home safe from work with a lower risk to injury and incident. I was motivated by the impact it could make on good, working people.

Q. What problems does your business solve?

A. Halo Ramp solves a transportation company’s greatest strategy question, how do we become more efficient and how do we save money to make money? Halo Ramp takes away the time and risk associated with making a delivery and puts all of that back into the company’s pocket, while building employee morale and safety…READ FULL ARTICLE

 

 

You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 8AM – 4PM, Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.jjhill.org.

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Angel Investing 101

For startups, financing can be challenging, and often the biggest barrier. Each month we’re focusing on a different financing option in Minnesota for startups and featuring experts in the field. 

An angel network is a group of investors who make individual investment decisions. In the case of Gopher Angels, our accredited investors collaborate on any deals of interest. There is a disciplined approach to this process and we have an administrative director who manages the due diligence.

An angel fund requires a minimum investment by angels of X dollars to go into a pool or fund to be managed by an individual or by a committee who deploys the dollars.

Seeking and using angel dollars should come after funding by friends, family, and self financing.

Angels generally invest in seed sage or early stage companies. By our definition seed stage is conceptual with a business plan supported by research to validate the business model.

Early stage is further along. It has a minimum viable product/prototype, a patent or being tested in the market with potential customers. The business can be pre-revenue but with some proof of concept. Better yet, there will be some level of revenue with paying customers.

While each fund/network/individual have their own criteria, here are some highlights:

  1. An exit such as an acquisition or an IPO where there is a return on investment within 5 to 7 years.
  2. Angels look for companies that can scale with a significant market potential.
  3. A team with relevant experience. This can be management but also can include a strong board of advisors.

So when angel investors pass on what could be a very successful business it is because there may not be an exit in sight, the company is not tapping into a large market potential or concern that the team does not have the skills to execute.

 

Further reading:

  • Rob Wiltbank, “Investment Practices and Outcomes of Informal Venture Investors”
  • Guy Kawasaki, The Art of the Start
  • Brad Feld, Venture Deals

 

David Russick is an established entrepreneur and angel investor. Russick is co-founder, Managing Director, and Board Member of Gopher Angels.  Russick was also founder and CEO of TUBS, Inc., a family owned waste and recycling business operating in the Twin Cities, Denver and Cleveland.   In addition, Russick serves on the Board of Advisors for the Dakota Venture Group.  Russick has been featured in the “Star Tribune,” “Twin Cities Business,” and the “Minneapolis St. Paul Business Journal.” “Twin Cities Business” named him a “2014 People to Know – Finance.”  

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Patrons with accessibility needs please access our ground floor elevator entrance via Kellogg Ave at the back of the building. Please ring the doorbell on the right hand side of door and a Hill staff member will assist you. If you have questions or concerns please call 651.265.5500. We look forward to having you visit.

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