Frequently Asked Questions
Does my company qualify for MTC funding?
- MTC invests in scalable, high-tech startups.
- Your company must be located in Missouri, or willing to re-locate to Missouri.
- Your company's technology must fall into one of our five areas of focus: animal health, applied engineering (which includes software, IT, clean energy tech and others), biomedical science, defense and homeland security, and plant science.
To which program should I apply?
MTC has four separate funds within the IDEA Funds program. Each fund is intended to correlate to a different stage of the startup life cycle. It is suggested you reach out to MTC to discuss where you may best fit.
- TechLaunch – This is MTC's pre-seed fund. There are many indicators of a company's place on the startup life cycle spectrum, but it is typical for a company which has raised less than $250,000 of outside capital to apply to the TechLaunch program.
- Seed Capital Co-Investment Program – The seed capital program captures the companies who have raised outside funds while spending substantial time refining their product. Seed capital is needed to develop the company to the point venture capital groups will invest.
- Venture Capital Co-Investment Program – MTC will only invest in a company through its VC program should the applicant have a venture capital group leading the investment. To be a lead-VC the investor must have domain expertise in the relevant industry and a commitment to invest multiple millions of dollars. Before applying through the VC program it is recommended you contact MTC to discuss the lead investor's qualifications.
- High Tech Industrial Expansion Program – This low-interest debt program is intended for companies which have achieved a steady stream of revenue and are shedding their status as a startup.
How often does MTC make investments?
MTC has a quarterly funding cycle. MTC accepts applications for each of the four funds 24/7, 365 days a year. It is suggested that you apply nearer an application deadline so that the information you provide for MTC's review is up-to-date. Tentative dates can be found here.
What is the process after applying for funding?
There are three levels of application review. First, MTC staff review and score each application received in that cycle. Around twelve companies will then be asked to pitch in person in Columbia, Missouri to the MTC investment committee. The investment committee then makes recommendations as to whether or not to invest, and in what amount. Last, each investment requires approval by MTC's board of directors.
How do I apply for MTC funding?
Our application is online at https://missouritechnologycorporation.venture360.co/apply. Please review the IDEA Fund program pages for more information.
The MTC funds are all "co-investment" funds. What does that mean?
For each dollar that we invest it is required that you have one dollar of investment from another source to match MTC.
What qualify as matching funds?
MTC will match investment dollars (convertible debt, equity, traditional debt) only. We will not match grants of any kind. We will not match in-kind "investments".
It is MTC's very strong preference to close in syndicate with the matching investors. However, MTC is willing to match investments that occurred up to 90 days prior to our board's approval of an investment in your startup.
How are deal terms negotiated with MTC?
MTC investments are typically in the form of convertible debt or equity.
MTC will invest under the same deal terms as negotiated by the co-investor, assuming an arms-length transaction that reflects market realities. Should the proposed terms be unreasonable MTC will invest under terms more in line with standard market rates.
MTC requires a security interest when investing through a convertible or traditional note.
Have more questions?
Contact:
Dan Kaemmerer at daniel.kaemmerer@ded.mo.gov or (573)522-0200
or
Tori Benson at tori.benson@ded.mo.gov or (573)526-0933