Frequently Asked Questions

• Does my company qualify for MTC IDEA funding?

  1. MTC invests in scalable, high-tech startups.
  2. Your company must be located in Missouri, or willing to relocate to Missouri.
  3. Your company's technology must fall into one of our five focus areas: animal health, applied engineering (which includes software, IT, clean energy tech and others), biomedical science, defense and homeland security, and plant science.

• What are the MTC's areas of focus?

  1. Animal Health – products and services related to the health and nutrition of companion and livestock animals including but not limited to animal feed, comparative health, diagnostics, human food supply, veterinary drug development and delivery, and veterinary science 
  2. Applied Engineering – the use of engineering to develop innovative product and service  solutions for technological issues including but not limited to advanced manufacturing,  advanced materials, clean energy generation and storage, creative content, digital and convergence media, and information technology.
  3. Biomedical Science – products and services related to human health including but not limited to biomaterials, diagnostics, drug development and delivery, information technology related to human health, medical devices and pharmaceutical manufacturing
  4. Defense and Homeland Security – products and services related to national defense and  national security including but not limited to the development, assembly, maintenance and  modification of military equipment, homeland defense-related solutions and related suppliers
  5. Plant Science – products and services related to plants and plant-derived materials including agricultural yield enhancement, biofuels, food, fiber, plant-derived chemicals, and value-added agriculture technology product

• To which program should I apply?

  MTC has two active 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.

  1. TechLaunch – This is MTC's pre-seed fund. There are many indicators of a company's place on the startup life cycle spectrum, but the co-investment program was developed for companies that have raised less than $250k of outside capital and are currently raising between $500k to $1M .
  2. Seed Capital Co-Investment Program – The Seed Capital program was designed for companies who have spent substantial time in research and development or refining their product and identifying early 'adopter customers'.  The program targets companies that have raised approximately $500k to $2M of outside capital and are currently raising between $1M to $5M.  Ideally, the seed capital provided by MTC will be leveraged to develop the company and product to the point venture capital groups will invest.

• How often does MTC make investments?

  MTC has an annual funding cycle. Tentative dates can be found here and here.

• What is the process after applying for funding?

  These highly competitive application-based programs are subject to a thorough 9-step investment review process that reflects MTC’s core values of integrity, transparency, accountability, independence, and collaboration:  MTC Investment Review Process

• How do I apply for MTC funding?

  When MTC is accepting accepting IDEA applications, the online applications can be accessed using the link below.  Please review the IDEA Fund program pages for more information.
  
  Online IDEA Fund Application

• The MTC ​funds are all "co-investment" funds. What does that mean?

  For each dollar that we invest, you must secure one dollar of investment from private sources to match MTC's investment. 

• Why does MTC require matching funds?

  MTC uses a matching fund requirement to ensure that the State's capital will be invested in the State's most attractive early-stage investment opportunities.

• What qualifies as matching funds?

  MTC will match investment dollars (convertible debt or equity) 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 will invest under the same deal terms as negotiated by the co-investor(s), assuming an arms-length transaction reflecting market realities. Should the proposed terms be unreasonable MTC will invest under terms more in line with standard market rates.
  
  MTC may require a security interest when investing through a convertible note.

• Have more questions?

  Please contact amy.steinman@ded.mo.gov