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
Stream smarter, safer: Former Cisco engineer aims to replace Zoom as top video conferencing platform
Kenneth Yancy has been live streaming since the early 2000s — a time when not many were interested in the technology, he said. But 20 years later, a virtual-hybrid work model featuring video conferencing is the norm. “In 2001, I was working for Cisco as an engineer. My team and I built the first live…
‘Fan favorite’ among KC startups joining Wichita cohort; the prize: a playbook for reaching corporate customers
Startland News’ Startup Road Trip series explores innovative and uncommon ideas finding success in rural America and Midwestern startup hubs outside the Kansas City metro. This series is possible thanks to the Ewing Marion Kauffman Foundation, which leads a collaborative, nationwide effort to identify and remove large and small barriers to new business creation. WICHITA…
None More Lonesome: Creative’s expression takes new form as ‘street art meets pop art meets tattoo flash’
Growing up in Olathe, Brett Crawford doesn’t really remember many places for local artists to put their work on display, he said. But times have changed and the artist and musician, who moved back to the Kansas City area during the pandemic, will see his None More Lonesome collection of paintings on display at Mean…
Rapidly scaling PayIt raises another $90M amid ‘long-overdue transformation’ of govtech
Growth and continued innovation are on the docket as Kansas City-filed PayIt closes a $90 million funding round. Led by the global firm Macquarie Capital Principal Finance, the capital injection is expected to keep fueling PayIt’s commitment to simplify the way people interact with the public sector in everyday places like the DMV and court…