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
Sneak peek: See the vision for Travis Kelce’s ‘safe haven’ for Operation Breakthrough teens
When Operation Breakthrough’s new Ignition Lab opens in the fall, the former muffler shop on Troost Avenue is expected to offer hands-on, practical training to young people who have aged out of the early education center’s MakerCity program. Media members were offered a first look at plans for the space — powered by Chiefs Super…
How a former Sprint car driver’s quick pivot from HVAC filters to face masks put a North KC startup atop the nanofiber scoreboard
Filti was less than weeks away from launching its state-of-the-art residential HVAC filter when the Coronavirus began its rapid spread throughout the U.S., Dakota Hendrickson recalled. Noticing a significant dip — yet high demand — for face masks, the former race car driver altered the company’s course. “Never in a million years did I think…
Former Mobank CEO, Cerner leader acquire, join longstanding KC tech company
A dramatic change at a Kansas City a computer IT support and managed services firm is expected to bring expanded vision and executive direction with the addition of two top tech leaders who also now own the business, the company announced Tuesday. CyTek Corporation, founded in 1998, has been acquired by former Mobank CEO Grant…
Far from fenced-in city life: Rural Missouri camel rancher takes a trail less ridden
After 35-plus years ranching camels at the foot of the Ozarks, Rod Malchow expressed no regrets about spending more than half his life with exotic animals on a remote Missouri farm — often seeing only his wife, sister and neighbors unless traveling to events offering camel rides. “If I fell over dead tomorrow, I’d have…