MTC hits $50M investment milestone through its state-sponsored venture capital program

JEFFERSON CITY, Missouri — A Show-Me State program launched a decade ago to drive economic development in Missouri and support tech founders has surpassed $50 million in equity-based investments for nearly 160 Missouri-based technology startups.

The Missouri Technology Corporation announced the milestone Tuesday, lauding its Innovation, Development, and Entrepreneurial Advancement (IDEA) Fund for impact that has rippled across the state.

Jack Scatizzi, executive director of the Missouri Technology Corporation, speaks with fellow InvestMidwest attendees in mid-April in Kansas City; photo by Tommy Felts, Startland News

“The impact of MTC’s $50 million of equity investments cannot be overstated,” said Jack Scatizzi, executive director of MTC. “MTC’s funding for early-stage startups is not only aiding in their growth but also attracting more risk capital, boosting Missouri’s venture capital capacity. These strategic investments have played a pivotal role in catalyzing innovation, bridging key gaps within the state’s ecosystem, and fueling the growth and scalability of early-stage businesses.” 

The IDEA Fund program is a state-sponsored venture capital initiative that utilizes public funding (both state and federal) to drive economic development within the state. The primary focus of the program is to foster innovation and support technology-driven entrepreneurial endeavors that contribute to the state’s overall economic development growth.

Click here for more information about the IDEA Fund and its programs.

“As we continue to focus on empowering Missouri founders, MTC has proven to be the best ally in our mission to foster innovation and drive economic growth in our state,” said Darcy Howe, founding managing director of KCRise Fund, expressing her gratitude toward MTC for its support since the inception of KCRise Fund in 2016.

“The partnership between state-sponsored funds and private venture capital firms creates a unique synergy that accelerates the growth of innovative startups,” she continued. “This collaboration not only attracts more capital but also brings together diverse expertise and networks, ultimately enhancing the chances of success for these early-stage ventures.”

Portfolio primed for growth

Over the past decade, the IDEA Fund has had a significant impact on the state’s economy, MTC officials said, noting its portfolio companies have generated more than 8,000 jobs in Missouri, raised an additional $2.1 billion in private capital, and achieved 22 successful exits.

Currently, nearly 60 percent of the companies that received an investment from MTC are still in operation and providing a positive economic development impact on the state. This rate far surpasses the national success rate for venture capital-backed companies, which is about 25 percent.

Sarah Hill, Healium, left, speaks alongside Anders Ericson, Whipz, during KCRise Fund’s Founder Forum at Industrious; photo by Nikki Overfelt Chifalu, Startland News

Kansas City startups within the MTC portfolio include:

• backstitch
• Excite Pharma Services
• FitBark
• Healthy Hip Hop
• iShare Medical
• LittleHoots
• Moblico Solutions
• PopBookings
• SaRA Health
• Serviam Care Network
• SquareOffs
• Venture 360
• VideoFizz

ICYMI: Trio of Kansas City startups among Missouri’s latest equity investments; $2.4M awarded in July

“MTC’s achievement was not possible without the collaboration of Missouri’s entrepreneurial support organizations that empower promising entrepreneurs to establish and expand their businesses in the state and directs high growth companies to engage with the early-stage venture capital sector,” Scatizzi said.

Photo courtesy of Benson Hill

Biggest success stories

MTC’s investments have played a crucial role in the success of companies like Geneoscopy, PayIt, Healium, and Benson Hill, enabling them to secure additional funding, develop innovative technologies, drive revenue growth, and create a significant number of job opportunities.

MTC was an early investor in Geneoscopy, a St. Louis-based life sciences company that uses its patented RNA biomarker technology to create innovative diagnostic tests for gastrointestinal health. Since MTC’s investment, Geneoscopy has completed a pivotal clinical trial for a colorectal cancer screening test and secured a more than $100 million Series B funding round. 

Mike Plunkett, PayIt, speaks to a crowd of students gathered Tuesday for UMKC’s Entrepreneur Speaker Series; photo by Taylor Wilmore, Startland News

Another notable investment is PayIt, a Kansas City-based company that provides a digital customer experience and payments platform for governments across North America, which currently provides more than 100 local jobs and has raised more than $200 million in additional private capital to date.

ICYMI: PayIt appoints new president and COO as fast-scaling KC govtech company hits pivotal moment

MTC has also been instrumental in supporting companies like Healium, a Columbia-based health, wellness, and fitness company with patented technology that visualizes fitness tracker data inside video. Healium’s recent collaborations with industry leaders such as the Mayo Clinic and Samsung demonstrate the significant influence of MTC’s investments in advancing technology development and boosting sales and marketing efforts for Healium’s stress management and sleep solutions.

From the archives: Healium augments funding with $3.6M seed round, adds Mayo Clinic deal

One of MTC’s most strategic and successful investments was being an initial investor in Benson Hill, which at its peak created more than 200 local jobs, went public on the New York Stock Exchange in 2022, and raised more than $300 million in additional private capital prior to going public.

From the archives: A high-tech funder planted seeds in 135+ Missouri startups; three bloomed into $1B+ unicorns in the past six months

In 2022, MTC’s IDEA Fund was approved by the U.S. Treasury Department to deploy a portion of Missouri’s $95 million allocation of federal SSBCI 2.0 funding. Notably, half of the $50 million funding invested to date was sourced from the SSBCI 1.0 Program.

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Since January 2023, MTC has awarded nearly $12 million in investment allocations to more than 40 early-stage companies and has closed more than $3 million in new investments. MTC will continue to deploy the SSBCI 2.0 funding through its IDEA Fund on a quarterly cycle over the next six to eight years.