Award: Up to $200,000
MTI’s Equity Capital Fund (EC) may make equity investments in our existing portfolio of Seed Grant, Development Loan or advanced Federal SBIR recipients. The EC Fund’s intent it to support our grant and loan recipients as they advance their company to full commercialization and business growth. This funding, either equity investment or convertible debt, follows on the same terms sheet as other investors to “top off” or close an investment round sufficient to carry a company to its next stage of growth.
The process for investment is design to follow the terms and due diligence of accredited individual or institutional investors in the investment round. Given the challenging investment environment combined with the early stage of many Development Loan and Seed Grant funded companies, there have been few opportunities for companies to secure sufficient follow-on funding to fill out a round behind the lead investor(s). Therefore, even for some of the strongest early-stage MTI funded companies with high growth potential, a funding gap has emerged. MTI’s Equity Capital is intended to accelerate the completion of rounds when this gap exists.
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 (e.g. 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
Before applying, please contact MTI for initial consult regarding Equity Capital, please contact Joe Migliaccio, Director of Business Development, at (207) 588-1013.