Federal funds will power Missouri investments for the next 8 years; here’s how your startup can apply
October 22, 2022 | Startland News Staff
Applications are now open for a popular state-run co-investment program that can provide up to a $2 million equity-based investment in Missouri-based companies that have identified a lead investor for the round.
The revived Venture Capital Program and specifically IDEA Fund Co-Investment Programs — coordinated by the Missouri Technology Corporation (MTC) — will be largely funded for the next eight years through the $95 million in federal funding from State Small Business Credit Initiative Program (SSBCI) that was recently allocated to Missouri.
MTC’s IDEA (Innovation, Development, and Entrepreneurship Advancement) Fund Co-Investment Program has programs for all stages of technology-based companies seeking venture capital funding.
The fund provides financing to eligible businesses through three programs that correspond to the three stages of growth for venture-backed businesses:
• Pre-seed capital stage financing through the TechLaunch program (up to $100,000);
• Seed capital stage financing through the Seed Capital program (up to $500,000); and
• Growth capital stage financing through the Venture Capital program (up to $2,000,000).
Click here to read more about the SSBCI award — an outgrowth of the Biden Administration’s American Rescue Plan that aims to boost startup and small business growth with a focus on traditionally underserved communities as they emerge from the pandemic.
Promising entrepreneurs and early-stage companies are invited to apply to the IDEA Fund Co-Investment Programs now. Applications are reviewed on a quarterly basis and MTC is now actively seeking new ventures to fund.
The application deadline for the January 2023 award cycle is 11:59 pm, Wednesday, Nov. 30.
Click here to apply or learn more about the process.
To be eligible for for IDEA Fund co-investment, applicants must:
- Be based in Missouri;
- Have a proprietary or protectable intellectual property;
- Be in the pre-seed financing stage;
- Have, at the time of closing, an actual third party dollar-for-dollar matching investment for MTC funds;
- 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;
- Have identified a potential lead investor which has domain expertise in the applicable industry sector of the applicant and/or has performed a signification level of due diligence in the discretion of the MTC (only for the Venture Capital Program — up to $2 million investment by MTC; not a requirement for the TechLaunch — up to $100,000 — or Seed Capital — up to $500,000 — programs); and
- Complete the application process.
Current MTC portfolio companies are eligible to apply for the coming round of investments, but must submit new applications for review and participate in the same approval process.
MTC’s Venture Capital Program was created to accelerate private venture capital investment in Missouri-based start-up companies and to increase the overall investment impact of third-party investments. The Venture Capital Program supports technology startups through matching equity or convertible debt investments up to $2 million for the purpose of scaling the business to attract additional venture capital.
Over the past decade, MTC has invested more than $45 million into almost 140 early-stage Missouri-based high-growth technology-focused companies, which have raised over $1.1 billion in additional private capital. To gauge the overall economic development and impact its portfolio has on the state, MTC surveyed more than 70 companies in its portfolio.
Click here to check out the impact results revealed by MTC’s survey.
2022 Startups to Watch
stats here
Related Posts on Startland News
Early buy-in from Latinx shoppers pushes paraMi toward surprise storefront; here’s where you’ll find them soon
A physical storefront wasn’t originally part of the plan for paraMi, co-founder Veronica Alvidrez shared, until the women behind the brand listened to the needs of their community. “We knew we wanted to offer our customers a shopping experience,” Alvidrez explained. “When we did pop-up events, we realized our shoppers are tactile shoppers and they…
Is there a doctor on board? Dragon boat race puts KC professionals in the rower’s seat
Brush Creek will put teams of professionals and other competitors to the test this weekend as Kansas City’s annual Dragon Boat Festival returns to the Country Club Plaza. For at least one crew, the waterway will become a lab of sorts — with leaders evaluating their teamwork and collaboration skills. Chris Jurief, a fourth-year resident…
Scaling his superpower: How BXKC’s new app amplifies Black professionals’ connections
A new tech platform recently unveiled by Black Excellence KC is expected to provide Black entrepreneurs with resources to elevate their careers and journeys, said Craig Moore II — a move that aims to boost the group’s human capital beyond one-on-one interactions. “We’re trying to create a tool where we can create better engagement among…
New in KC: West Coast transplant impressed by local startup, tech scene; says KC should embrace more flops
Editor’s note: New in KC is an ongoing profile series that highlights newly relocated members of the Kansas City startup community, their reasons for a change of scenery, and what they’ve found so far in KC. This series is sponsored by C2FO, a Leawood-based, global financial services company. Click here to read more New in KC profiles. Kansas City is a…