The Maine Angels, a group of accredited investors who pool their resources to invest in and mentor early-stage companies, invested $4 million in 16 companies in 2021.
Of the capital deployed, $1.8 million went to five companies new to Maine Angels’ portfolio, while $2.2 million was invested in 11 companies members had already invested in, according to Ralph Nodine, Maine Angels’ chairperson.
The $4 million its members invested is up slightly from the $3.3 million its members deployed in 2020.
“2020 was a particularly good year so we feel good about maintaining our activity and membership,” Nodine told Maine Startups Insider.
Here are the five new companies joining the Maine Angels’ portfolio:
- Highbyte, a Portland-based industrial software company. It raised $3.5 million late last year. (Editor’s note: an initial investment by four members in the form of convertible notes took place in December 2020, which is why MSI included it in last year’s list of Maine Angels’ 2020 investments. Those notes were exchanged for equity in November 2021, which is why it shows up in the 2021 list.)
- Kikori, a Durham, N.H.-based EdTech startup that’s developed a mobile app and community-driven platform that delivers team-building and social-emotional learning activities. It raised a $130,000 debt-financing round in December 2021, according to Crunchbase.
- GO Lab, a Belfast, Maine-based company that manufactures renewable, biodegradable, non-toxic wood fiber insulation for the residential and light commercial construction market. It raised a $3.2 million round in March 2021, according to its Form D.
- TOP the organic project, a Duxbury, Mass.-based startup selling organic, bio-based, hypoallergenic feminine hygiene products. The company raised $2 million in August 2021.
- StageConnect, a Nashua, N.H.-based startup building software that allows remote audiences to interact with hybrid and virtual events. It raised a $790,000 debt-financing round in June 2021, according to Crunchbase.
Overall, the Maine Angels have invested a total of $35.1 million in early-stage companies since it was founded in 2003. Its portfolio currently consists of 59 companies, 58% of which are based in Maine.
The 59 companies are spread across the following sectors:
A competitive field
If you’re a founder interested in pitching Maine Angels, it’s good to know how competitive a process it is.
Last year, the Maine Angels screened 85 deals, heard pitches from 18 founders, conducted due diligence on 15 of them and its members ended up investing in only five—that’s an acceptance rate of 5.9%.
The Maine Angels is not a fund that invests as a single entity. Instead, each member makes their own personal investment decision. The group, however, works together on due diligence and deal flow. (Dirigo Fund I is different; more on that below.)
The next application deadline to potentially pitch to the group is April 6. Here’s the investment criteria.
Membership stays flat
In 2020, the Maine Angels’ membership grew to 86 individuals, a 40% year-over-year increase, as a shift to remote meetings opened up an opportunity to join for angel investors who previously weren’t interested in driving to Portland for every meeting.
In 2021, the group added 11 members, all of whom have already invested in at least one deal. However, the group lost members, too, for a current total of 84 members.
Of the current membership, 29 (34%) are women. In the last decade, the Maine Angels has quadrupled the portion of its members who are women.
Raising Dirigo Fund II
In 2020, the Maine Angels raised $2.4 million to create the Dirigo Angel Fund I, a pooled investment fund that supplements the individual investments made by its members. In that first year, the sidecar fund invested in five companies for a total of $830,000.
In 2021, the fund invested in five companies for a total of $840,000, which is included in the $4 million total for the year. The five companies the fund invested in are VETRO FiberMap, Mobile Price Card, GO Lab, Top the organic project, and Xeno Biosciences.
The Maine Angels is now actively raising a Dirigo Angel Fund II, according to Nodine.
The first fund only has about 15% of its capital remaining, which is enough for another two investments and Nodine said the expectation is those investments will be made in next couple months.
“Speaking as a member, we hope to overlap the two funds so we don’t have a period where it’s not meeting the needs of our companies,” he said.
Nodine said the group is looking to raise $3 million to $4 million from Maine banks and individual investors for Dirigo Angel Fund II.
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