Capital City Angel Fund adds three more local investments

HealthFundr CEO Jared Iverson (right) and chief financial office Josh McIver (left) say their investing platform could lead more people to invest in early stage health care companies. “It can create a huge influx of capital into something we’re passionate about, which is health innovation,” Iverson said. Photo by Patrick Sweeney.
Healthfundr is one of the companies that saw investment in 2014 from Capital City Angel Fund. HealthFundr Chief Financial Officer Josh McIver (left) and CEO Jared Iverson  say their platform could lead more people to invest in early stage health care companies.  Photo by Patrick Sweeney.

In its first year, Boise’s $1.1 million Capital City Angel Fund has invested $350,000 in seven different companies, five of them with Treasure Valley connections. The angel investing fund recently announced three more investments, in divorce mediation technology company WeVorce, agricultural sprayer maker GenZ Technology and college housing technology company Room Choice.

The Capital City fund is the third fund managed by the Boise Angel Alliance. The others are the Boise Angel Fund and the Treasure Valley Angel Fund. The Boise fund is fully funded while Treasure Valley Angel Fund still has $100,000 remaining to invest and the Capital City fund is now looking for more companies to fund, according to Kevin Learned with the Boise Angel Alliance.

“We’re actively looking for quality investments,” Learned said. The Capital City Angel Fund has also made investments this year in two other Idaho companies, food maker Fit Wrapz and healthcare investment platform HealthFundr, both of which also received investments from the Treasure Valley Angel Fund. The Capital City fund also invested in two Oregon companies: Better Bean, which makes gluten-free and vegan beans, and Sandstone Diagnostics, which is making a male fertility tracking system.

In the past 10 years, Boise Angel Alliance funds and members have invested close to $8 million in companies, primarily in Idaho, that have created more than 300 jobs in Idaho. Learned said the accredited investors who are part of the three funds are certainly trying to make money on their investments, but also want to support local companies and the economy.

So far, two companies that have received investments from the funds have been acquired.  Happy Family was acquired by French food giant Danone and Pacinian was acquired by Synaptics. Learned said the Happy Family deal by itself made the first Boise Angel Fund profitable. Two other companies supported by the first fund, GeoData Technologies and Social Good Network, have folded, with Social Good Network’s assets going to local advertising firm Oliver Russell. Learned said he hasn’t heard of any other acquisition talks, though he said investors often aren’t privy to such talks.

“You have to be very patient in this business,” he said.

WeVorce was created by attorney Michelle Crosby in Boise and now has a Boise office and headquarters in California. It uses web-based technology as well as lawyers, counselors and other experts for a flat-fee amicable divorce.

Room Choice, based in Nampa, makes software for college student housing property managers. Its system lets students pick rooms and roommates and manages applications, contracts and contact information. It was founded by David Bailey, who previously worked for Redstone Residential, which manages student housing near Brigham Young University, Brigham Young University-Idaho and Utah State University.

GenZ Technology in Boise makes pesticide spraying equipment that physically surrounds row crops and recaptures some sprayed pesticides, with the goal of reducing the amount of pesticide required.  The company previously received funding from the state of Idaho’s Idaho Global Entrepreneurial Mission to test its equipment.