How early-stage Missouri tech startups could score co-investment funds up to $500K
February 27, 2021 | Startland News Staff
One of Kansas City startups’ biggest boosters is still in business, despite its imperiled state funding amid ongoing COVID-era budget decision-making.
The Missouri Technology Corporation announced this week it’s accepting applications for two IDEA Fund co-investment programs — TechLaunch and Seed Capital — that have historic impacts on local founders.
Jack Scatizzi, Missouri Technology Corporation
“MTC’s co-investment programs were developed to support Missouri’s early-stage entrepreneurs in developing technologies and create jobs across Missouri while positioning companies for future venture capital investment,” Jack Scatizzi, executive director of MTC. “The IDEA Fund programs support technology startups through matching equity or convertible debt investments for the purpose of technology and business development.”
The fund offers investments up to $500,000.
Click here to apply for the TechLaunch pre-seed fund or here to apply for the Seed Capital program by April 5.
Applicants for funding must be based in Missouri; have a proprietary or protectable intellectual property; be in the pre-seed or seed financing stage; have, at the time of closing, an actual third party dollar-for-dollar matching investment for MTC funds; and fit into at least one of MTC’s five focus areas: animal health, plant science, biomedical science, applied engineering (software), and defense and homeland security.
To date, MTC has made direct investments of more than $43 million into more than 130 of the state’s most promising early-stage technology-focused companies and those companies have raised more than $800 million in follow-on private funding, Scatizzi said.
“Support from MTC was key for us in raising our pre-seed round in 2017. They were the first fund to make a commitment in that round and that really helped drive interest from early stage funds and angel groups that ultimately co-invested with the state.”
— Jordan Warzecha, co-founder of backstitch
Among the Kansas City startups to take advantage of MTC’s co-investment funding: backstitch, Little Hoots, Moblico, Mycroft, Pathfinder Health Innovations, PayIt, Popbookings, Proviera Biotech, SCD Probiotics, Sickweather, SoftVu, StoryUp, Transportant, Venture360, and VideoFizz. (Today, many of these startups are now listed among Kansas City’s Top VC-Backed Companies.)
Click here to see MTC’s full portfolio.
Support for startups also includes funding efforts linked to local programs like LaunchKC and Digital Sandbox KC, as well as providing funds to nine innovation centers — such as those at the University of Missouri in Kansas City and Columbia, and Innovation Stockyard in St. Joseph.
MTC also largely supports the Missouri Building Entrepreneurial Capacity (MOBEC) Program, which has provided more than $29 million in funding to nonprofits, universities and other organizations that offer entrepreneurial support programs.
A budget plan released in late January by Missouri Gov. Mike Parson includes a $1 million FY 2022 budget allocation for MTC, which saw its investment efforts defunded last year because of COVID-19-related shortfalls.
Click here to read more about the 2022 budget recommendation.
MTC’s state budget expenditure was nearly $2.2 million in FY 2020 — down significantly from $17 million as recently as 2016.
Officials previously told Startland News that the popular public-private initiative largely relies on a mix of state funding and cash reserves to operate.
MTC is now accepting applications for our IDEA Fund Co-Investment Programs. To date, MTC has made direct investments of over $43M into more than 130 of the state’s most promising early-stage technology-focused companies. Find it here: https://t.co/5FdI2k8zIC
— MTC (@MoTechCorp) February 25, 2021
Featured Business
2021 Startups to Watch
stats here
Related Posts on Startland News
As engagement grows, KC Women in Technology gears up for 2017
Imagine if the next Mark Zuckerberg was a young female living in Kansas City. Despite an interest and aptitude in technology, imagine she walks into a popular clothing store and seeing a shirt that reads: “I’m too pretty to do math.” Subliminal messages such as this are not an uncommon occurrence for many young women.…
KC programs become semifinalists in Harvard innovation contest
Harvard University has recognized two Kansas City initiatives as semifinalists in the school’s Innovations in American Government Awards competition. Led by the City of Kansas City, Mo., the Community Improvement District Revolving Loan Fund and Women’s Empowerment initiative both are among 100 programs vying for a shot to become finalists and the $100,000 grand prize.…
The Lean Lab continues to make an impact in KC education
As the Lean Lab looks back on its third year, co-founder Katie Boody said the program is “just getting started.” Launched in 2013, the Kansas City-based education tech incubator engaged over 900 individuals in conversation on education innovation in 2016. In addition, last year marked the organization’s first step to go international, attracting entrepreneurs that…
Firebrand Ventures partners with UMKC to cultivate entrepreneurs
Firebrand Ventures has partnered with the University of Missouri-Kansas City to help local startup entrepreneurs. As part of the agreement, the Kansas City-based fund will offer graduates of UMKC’s E-Scholars program an opportunity to receive an investment from Firebrand starting in 2017. Housed under UMKC’s Regnier Institute for Entrepreneurship and Innovation (RIEI), E-Scholars offers students…