Governor Jay Nixon has announced a major new $17 million capital program for start-up, innovative technology companies. The Missouri IDEA Funds will be administered by the Missouri Technology Corp. (MTC). Applications for funding will be available on the MTC web site beginning Friday April 8.
The Missouri IDEA (Innovation, Development, and Entrepreneurship Advancement) Funds promote the formation and growth of businesses that engage in the transfer of science and technology into job creation. The funds provide financing to eligible businesses through four components that correspond to the four stages of venture growth:
- Pre-seed capital stage financing
- Seed capital stage financing
- Venture capital stage financing
- Expansion stage debt
IDEA Funds Summary
Provides either loans or equity investments to early-stage, high-growth technology companies.
- Eligible Applicants: Same as the Grow Missouri Loan, except targeted to fast-growing, technology-based companies in targeted industries.
TechLaunch
- Summary: This pre-seed funding will be awarded to entrepreneurs for intellectual property development and evaluation, including in-depth analysis of market potential, conducting competitive analysis, establishing proof of concept of a scientific discovery, prototype design and development, and related activities.
- Funding Available: The request for financial support should be specifically and narrowly tailored to the plan outlined in the application submitted to MTC, but individual awards will not exceed $100,000 or 50% of the project cost. (A higher amount may be approved for projects of unusual impact.) Awards will be in the form of equity or convertible debt.
Seed Capital Co-Investment Fund
- Summary: The seed capital may be used by the start-up company for advanced intellectual property development and evaluation, including in-depth analysis of market potential, conducting competitive analysis, advanced proof of concept work for a scientific discovery, advanced prototype design and development, research and development needed to attract venture capital financing, hiring key personnel, and related activities.
- Funding Available: The request for financial support should be specifically and narrowly tailored to the plan outlined in the application submitted to MTC, but individual awards will not exceed $500,000 or 50% of the total project cost. Accordingly, it is not expected that each applicant will request the maximum amount of funds that may be awarded under this program. Awards will be in the form of equity or convertible debt.
Venture Capital Co-Investment Fund
- Summary: High-tech companies that are past the R&D stage need access to venture capital to position the company for growth. The venture capital may be used by the early stage company for working capital, buildings (construction or leased space), equipment, and related activities.
- Funding Available: The request for financial support should be specifically and narrowly tailored to the plan outlined in the application submitted to MTC, but individual awards will not exceed $2,500,000 or 50% of the total project cost. Accordingly, it is not expected that each applicant will request the maximum amount of funds that may be awarded under this program. Awards will be in the form of equity or convertible debt.
High-Tech Industrial Expansion Fund
- Summary: Through this program, MTC makes investments that can be used to purchase equipment, facilitate construction, and hire key personnel.
- Funding Available: The request for financial support should be specifically and narrowly tailored to the plan outlined in the application submitted to MTC, but individual awards will not exceed $3,000,000 or 50% of a total project cost. Accordingly, it is not expected that each applicant will request the maximum amount of funds that may be awarded under this program. Awards are typically in the form of a secured low-interest loan.
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