The three-year-old Northland Angel Investor Network (NAIN) is making progress towards its goal to reduce risks for local investors and provide opportunities for entrepreneurs.
NAIN works with the Clay County Economic Development Council to match financial capital and assistance with qualified companies willing to locate in Clay County, Missouri.
The EDC affiliate now has programs to provide funding for both startups and expanding businesses, while reducing risk for investors. To date, NAIN has funded four companies for a total of $850,000. Two other deals that are undergoing due diligence are expected to be closed soon, bringing the total funding to more than $1,000,000.
In a release, NAIN Managing Director Dave Palmstein said, “We’re making headway. But sometimes it feels like three steps forward and two backward.”
Palmstein notes that NAIN requires a vigorous vetting process for startup companies, including pulling together a network of business leaders and specialists who have the knowledge and expertise to review potential recipients.
Palmstein said that on average, they have 10 investors, and each investor has roughly 2o years of experience. In addition, he said, “we have specialists who know the industries we work in. There are very few industries we can’t drill deep into in order to assess risks and potential. As a group, we reduce the risk significantly.”
The due diligence is paying off. “The number and quality of the companies that are available to invest in is impressive,” Palmstein said. “The opportunities are there for some very good returns.”
NAIN is also beginning to receive national attention from investment groups. “The thoroughness that we go through is attracting major investment funding organizations that want to participate,” Palmstein said.
The investment group’s interests tend to be focused on companies involved in the areas of artificial intelligence and Internet of Things (IoT) devices, software, and human and animal health sciences. Not all applicant companies are located in the Northland, but Palmstein noted that priorities are available for investors that want to emphasize local economic development.
NAIN will host a dinner meeting at iWerx in North Kansas City on June 12 for potential investors. “It will be specifically for people who have never been involved in investing in localized companies,” Palmstein said. “It’s an opportunity to better understand what this is about.”
For further information, visit the NAIN website or call (816) 468-4989.
