Generally, MTC will match investment dollars paid to a company in exchange for the issuance of convertible debt or equity securities only. MTC will not consider grant funding as satisfaction of the match requirements. MTC will not consider investments made in exchange for services provided or in-kind investments as eligible matching funds.
Additionally, applicants will be required to provide information regarding proposed Co-Investor. MTC will review such information on an individual basis to determine if such co-investment and involvement with the company qualifies as an eligible source of matching funds.
Traditionally our IDEA Fund Co-Investors are individual angel investors, Missouri-based angel investor networks or seed-stage venture capital funds. MTC expects Co-Investors to provide more than providing financial support; each Co-Investor is expected to be actively involved in the company’s operations either directly or in an advisory capacity. The level of active involvement varies depending on the size of MTC’s investment, the stage of development of the company and the oversight and voting rights MTC is entitled to as a result of its investment.
Generally, the investment terms offered by accelerators and incubators have not qualified as matching funds since accelerators and incubators tend to receive more ownership in the company compared to their capital investment given the additional services and resources provided to the company.
Additionally, MTC generally has not considered investments pooled from an equity crowdfunding platform or an AngelList syndicate as qualified Co-Investors since such investors do not play an active role in managing and advising the company.
MTC's program contemplates closing on MTC’s investment simultaneously with all matching investors. However, in limited circumstances where an applicant can demonstrate significant burdens to such simultaneous closing, MTC is willing to consider alternative matching fund closing scenarios.