Loans and Equity Investments
Your organization or project must meet the following criteria to be eligible for Business Innovation Funding.
MTI’s Funding Continuum
MTI supports companies from early-stage development through later-stage growth.
GRANTS
$10,000 – $100,000 cumulative
Most BIF awards. First-time awards typically $10K-$30K.
Tier 1: Up to $30K
Tier 2: $30K-$60k
Tier 3: $60K-$100k
LOANS & EQUITY
Beyond $100K
For later-stage companies with proven products and the ability to take on repayable or investable funding.
Beyond Grants: Funding for Later-Stage Companies
Most MTI Business Innovation Funding is awarded as grants. For companies that have progressed beyond grant-stage funding, MTI may also offer loans or equity investments. These are intended for companies with a demonstrated track record, a proven product, and the financial position to support repayable or investable funding.
Your MTI team member will recommend the appropriate funding structure based on your company’s stage of development, financial position, and the nature of the project.
What MTI Looks For
The expectations for loans and equity are significantly higher than for grants. MTI is looking for:
- A working product with real customers and evidence of sales
- A leadership team with the skills, experience, and governance to manage a larger investment
- Credible financial projections supported by data
- Significant economic impact proportional to the size of the investment
- Sufficient matching funds
Loans vs. Equity
Loans may be appropriate for companies that can demonstrate an ability to service debt through existing revenue and cash flow. MTI evaluates the company’s revenue history, cash flow, and ability to repay while continuing to grow. Both current MTI portfolio companies and companies new to MTI may be considered for loans. In certain industries with long commercialization timelines, MTI may consider a loan where the company demonstrates other strong evidence of repayment ability.
Equity investments are only available to current MTI portfolio companies in good standing. MTI participates in equity rounds alongside other investors and requires a committed lead investor. Equity investments are governed by MTI’s Equity Investment Policy and reviewed by MTI’s Equity Review Committee. Following an investment, MTI typically takes a board observer seat and requires quarterly performance reporting.
Companies that receive loan or equity funding remain eligible for other MTI programs, including future grants, MERC consulting, and SBIR/STTR support.
Getting Started
If you believe your company may be a candidate for loan or equity funding, speak with your MTI team member. If you’re new to MTI, start with the Startup Questionnaire or submit an interest form – your MTI team member will help determine the right funding structure for your situation.
Have questions about loan or equity funding? Visit our FAQ, or speak with your MTI team member.
Access to MTI’s early-stage funding has been one of our biggest advantages. Many startups struggle to secure capital before they are ready for angel or VC investment, and MTI’s tech-focused grants help bridge that gap and accelerate progress.
–John Williams, Co-Founder, Bluesonde Technologies