Proof of Concept Program (Pilot)

 

MTC’s pilot Proof of Concept Program supports Missouri’s early-stage entrepreneurs developing technologies and innovative products/solutions with high-growth potential. MTC envisions that the Proof of Concept Program will help bridge the funding gap experienced by companies in their early stages of development and expedite the growth of such ventures.  These companies often require capital to develop or launch a minimum viable product (MVP) but are too early for angel or traditional venture capital investment. Entrepreneurs often resort to seeking funds from friends or family, piecing together non-dilutive sources, or relying on credit cards to fund the development of their ideas and technologies to assess market viability. Unfortunately, not all entrepreneurs have access to these funding sources.

MTC believes that by providing necessary capital at this early stage, they can bridge the gap and support the growth of these businesses. MTC also believes that many of these companies can contribute to positive economic development if given the opportunity to receive initial risk-based capital investment through their state-sponsored venture capital program. Additionally, MTC envisions that these companies will achieve success in their development and growth, leading to job creation across Missouri and positioning the companies for further venture capital investment.

Through the Proof of Concept Program, MTC will make equity investments ranging from $25,000 to $50,000 into early-stage companies to support their technology and business development. To receive MTC’s investment, a matching co-investment of equity, convertible debt and/or a non-dilutive grant will be required. MTC prefers to participate up to 33% of the new capital in a funding round.

To be eligible for a Proof of Concept Program investment, a company must:

  1. Be based in Missouri;
  2. Have a proprietary or protectable intellectual property;
  3. Have completed ideation and customer discovery;
  4. Have, at the time of closing, a genuine third-party dollar-for-dollar matching investment for MTC funds;
  5. Fit into at least one of MTC’s seven focus areas – Biomedical & Life Sciences, Healthcare Technology & Services, Financial Technology & Services, Software & Data, Energy, Manufacturing, Supply Chain & Logistics
  6. Complete the application process.

Investment Process: 

  1. Applicants are invited to fill out the application (APPLICATION LINK).
  2. MTC staff reviews all applications received on a quarterly basis.
  3. Applicants are notified whether their pitch deck and video submission will be reviewed by the MTC investment Committee approximately one (1) month after applications close.
  4. The MTC Investment Committee will make funding recommendations to MTC’s Executive Committee and Board of Directors.
  5. The MTC Board of Directors will meet to review and approve the recommendations.
  6. When a company awarded an investment allocation has raised the required matching funds within 6 months, MTC will initiate its due diligence.
  7. MTC will invest on MTC’s convertible note only.

Pilot Timeline:

October 2024 Award Cycle   |  MTC Proof of Concept Flyer Oct 24
• Application deadline: 11:59 pm, August 7, 2024
• Presentation to Investment Committee: October 2024
• Board approval: by early November 2024

January 2025 Award Cycle
      • Dates TBD

As a state-sponsored venture capital program, MTC requires that every company must enter into a Participation Agreement prior to closing its investment.