Local Group Will Provide Seed Capital and Early- and Late-stage Investments in Area Companies
 

(Montevideo, Minn.–April 12, 2005) – River Valley Capital, LLC has been formed in Montevideo, Minn.  Initially capitalized at more than $500,000, River Valley Capital, LLC will invest in private companies, providing seed capital, or early- and late- stage investments, in the region.

River Valley Capital, LLC is the sixth Minnesota Investment Network Corporation-certified RAIN^® fund.  The company will be managed by its local members, comprised of an investment group of local businesspeople and institutions.  Those local members include KleinBank (formerly First National Bank in Montevideo), Montevideo Community Development Corporation, and Minnesota Investment Network Corporation.    

“The Montevideo business and community leaders have really embraced the formation of this RAIN^® fund,” said Steve Mercil, president and CEO of the Minnesota Investment Network Corporation.  “They clearly understand the need for this kind of funding and have been significant partners in the process.”

A number of Montevideo community leaders attended a RAIN^® makers conference last fall in Alexandria, Minn., and subsequently decided to form River Valley Capital, LLC in their community.

“Investing significant capital resources in the River Valley Capital LLC allows us to partner with other community-minded private and public investors to help stimulate economic development, increase jobs and grow Montevideo and the surrounding southwest Minnesota region,” said Brian P. Johnson, president, KleinBank. 

Montevideo Economic Development Director Scott Marquardt, said, “River Valley Capital will be an outstanding resource for our business recruitment and expansion activities, helping to diversify our local economic base and be a catalyst for entrepreneurship.  Another important aspect of our RAIN fund is the statewide network of investment resources available to us through the Minnesota Investment Network Corporation.”

 In addition to investing in local companies, River Valley Capital may also co-invest with other RAIN^® funds or with Minnesota Investment Network Corporation in other companies in Minnesota.

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About Minnesota Investment Network Corporation

Minnesota Investment Network Corporation is dedicated to building the capacity for equity investments in markets not served by traditional venture capital firms. The organization acts as a catalyst that pools individuals and organizations together to address unmet financing needs. Minnesota Investment Network Corporation seeks to build local equity capacity by investing in companies directly and establishing local investment funds called RAIN^® funds throughout Minnesota and the upper Midwest.

CONTACT: Steve Mercil, for Minnesota Investment Network Corporation, (651) 632-2140, or www.mincorp.org; Brian P. Johnson, KleinBank (formerly First National Bank in Montevideo), (320) 269-2480 or B.Johnson@Kleinet.com; and Scott Marquardt, Montevideo Economic Development Director, (320) 269-6575, eda@montevideomn.org.