Angels in Alaska: Alaska's growing entrepreneurial ecosystem.

AuthorRohloff, Jessica
PositionFINANCIAL SERVICES

As recently as five years ago the startup scene in Alaska was sparse but--with the creation of the 49th State Angel Fund and a growing list of events and resources to support entrepreneurs statewide--that situation is rapidly changing.

The 49th State Angel Fund was created by the city of Anchorage in 2012. Since then the entrepreneurial ecosystem has begun to take hold, led by organizations and individual investors with foresight into Alaska's economic situation. This concerted effort has borne fruit and continues to grow. There are now business plan competitions, hackathons, maker fairs, and a variety of other events to connect people with the resources they need to launch successful businesses. In addition to events like Startup Weekend and the hackathons, there are also brick-and-mortar pillars of the startup community such as The Boardroom in Anchorage or Hub in Fairbanks.

The 49th State Angel Fund, however, is unique. As the fund's Director Joe Morrison says, "Most municipalities are not running a venture capital function out of city hall like we do." It's primarily focused on being a "fund of funds." Rather than picking investment opportunities, the Municipality partners with other angel and seed investment funds which then make the call as to which companies are actually ready for capital investment.

'Angel Investing is a Team Sport'

Wherever there's money there are investors, but what's changed in Alaska is that there is an ecosystem of people working together. "What's new is that you have an organized community of investors," says Nolan Klouda, executive director of the Center for Economic Development at the University of Alaska Anchorage. "That's something we haven't had until recently. The 49th State Angel Fund was a key factor in organizing the investor community, rallying people around entrepreneurship in general."

According to Morrison, individual investors are "doing a large part to lead the charge." One of those individuals is Allan Johnston, co-president and "chief encouragement officer" at The Entrepreneurs and Mentors Network. Johnston points out that community is key because "angel investing is a team sport." A vigorous investment environment may not be sustainable if it is uncoordinated and comprised of solo investors.

Another valuable aspect of investor teamwork is that, when angel investors are looking at potential companies, they may not always be familiar with the business line in which that company operates. With a...

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