Equity Capital supports the Business Innovation Program grant and loan recipients as they advance their company to full commercialization and business growth. This funding, either equity investment or convertible to equity, helps attract initial early stage/pre-seed outside investment (typically referred to as Series A) and/or “tops off” a meaningful size investment round so that it is sufficient to carry a company to its next stage.
Historically MTI only offered Accelerated Commercialization Funding (ACF), which followed the terms and due diligence of accredited individual or institutional investors and served to “top off” an investment round. Over the past 24 to 36 months, given the challenging investment environment combined with the early stage of many Development Loan funded companies, there have been few opportunities for companies to secure follow-on funding where there were lead investor(s) for MTI to follow. Therefore, even for some of the strongest early stage MTI funded with high growth potential, a funding gap has emerged. MTI’s Equity Capital is intended to help companies bridge this gap.
MTI makes EC investments in companies that have strong management and technical teams, either already in place or identified; strong business growth prospects, preferably with solid intellectual property positions; owners committed full-time; other private sector funders willing to invest alongside MTI; customer interest and sales traction, already established or visible near-term; and, established enterprise infra-structure and organization, in place or in formation. Appropriate advisors and service providers, for example, legal, accounting and banking, should already exist or be selected and the company should be using an active advisory board and/or independent directors.
In the case of early stage/pre-seed investment candidates, MTI, matched by outside private sector capital, can help a company advance through the critical enterprise formation, team building and initial sales and marketing phase which, if done well, will position the organization to raise larger amounts of growth capital.
Deadline: Requests received on a rolling basis
For questions and additional information regarding Equity Capital, please contact Joe Migliaccio, Director of Business Ventures, at 207-582-4790 x 204 or firstname.lastname@example.org.