Rural, Liberal Arts College Seeds New Angel Fund

The opportunity for innovation and the need for angel capital are not limited to the major metropolitan areas and large research universities, as the board of trustees for Taylor University and leaders of the Grant County Economic Growth Council in rural Indiana will attest. The east-central Indiana county is home to just over 70,500 residents and, soon, two angel funds.



Taylor University, a Christian-based liberal arts college with an enrollment of 1,875 students, recently created an angel fund to encourage and support an entrepreneurial climate at the university and the Upland, In., community. In addition, the Grant County Economic Growth Council, based in Marion, In., is in the early stages of establishing a local angel fund to be a part of the Indiana Venture Network.



The university's Center for Research and Innovation (CRI) was set up about two years ago to help increase learning and generate research, technology transfer and commercialization, said Mick Bates, director of the innovation and enterprise program for CRI. The fund hopes to build upon its experience of the past two years, Bates said.   



According to Bates, the Board of Trustees - some with a background in venture capital - came up with the idea for an angel fund out of the need to expand economic development efforts in the region. The university contributed $250,000 to get the fund going, and a management board is in the works to solicit members and funding. The university expects to start making investments in the first quarter of 2007.



"Investments will be oriented toward those with a Taylor University affiliation, such as students, faculty, alumni, and local businesses," said Bates, adding that all deals will be considered. The university is an evangelical, independent, interdenominational college. According to Bates, investments will be based on merit, and there is a high likelihood they will be made to new ventures that maintain high ethical standards.



Bates pointed out that, although no specific technology thrusts are being sought for investment, the university has strong space science technology capabilities, which may be an option.



Tim Eckerle, executive director of the Grant County Economic Growth Council, applauds the university for taking the initiative to further economic development in the region by establishing the Taylor University Angel Fund. Taylor University is a partner in the council's Innovative Network, along with Indiana Wesleyan University, Ivy Tech State College and Vincennes University Partnership.



"What is unique is that this is coming from a liberal arts college, as opposed to one that is research-intensive," Eckerle said. He added that it is not a good idea to brand the fund as being specifically technology-oriented.



"The idea is to promote entrepreneurship and risk-taking," Eckerle said. "Sometimes what starts out as non-tech can end up being tech-related."