Show Me the Funding: MTC

Posted 02/10/2017 by Accelerate St. Louis

Have a big idea but need funding to make it a reality? From grants to venture capital, there are many ways you can approach funding your startup.  One local resource is the Missouri Technology Corporation (MTC), which is funded by the state of Missouri.

As a non-profit organization created by the Missouri legislature to promote entrepreneurship and foster the growth of new and emerging high-tech companies, the MTC uses funds it receives from the state to support startups and entrepreneurial support services. It does this by investing in innovation centers (CET, for example), infrastructure (ie BioGenerator Accelerator Lab, T-REx and ITEN) as well as by making direct investments in startups themselves through its IDEA Funds- Greetabl and Better Weekdays are two local startups, among many others, that have received MTC IDEA Funds.

When it comes to deciding what companies to fund, MTC uses a competitive, merit-based process to select companies for equity investments with the overall goal of growing our economy. In 2016 alone, MTC portfolio companies created 161 full-time jobs and 87 part-time jobs.

Ready to Advocate?

This funding is not guaranteed each year. Governor Greitens’ proposed FY 2018 budget reduces MTCs funding by 78%.  No, that is not a typo.  In FY 2017, MTC was appropriated $22.9m and the FY 2018 budget currently allocates only $5m. This funding is critical to the economic development of the state of Missouri and the success of our entrepreneurship ecosystem.  We encourage you to reach out to your state legislators to share your entrepreneurship story to protect MTC funding.

Here is a one-pager to help explain the value of MTC.

Find your legislator here. http://cqrcengage.com/stlrc/home

Ready to Apply?

MTC accepts applications for its IDEA Funds throughout the year, with the next round due February 15. There are four types of IDEA Funds for companies at every stage. Find out where you fit in and get started.

1/ Missouri TechLaunch
Funding level:
Pre-seed
What it is: A program designed to help high-tech entrepreneurs overcome the principal financing challenges of launching new start-ups that leverage discoveries and talent at Missouri’s world-class public and private universities and other research organizations.
Who it’s for: Startups that need funding for intellectual property development and evaluation. Funds can be used toward in-depth analysis of market potential, conducting competitive analysis, establishing proof of concept of a scientific discovery, prototype design and development and related activities.
More information and application

2/ Seed Capital Co-Investment Program
Funding Level: Seed capital
How it works: Designed to accelerate private investment in startups, the co-investment program awards funds that match other capital investments. To be eligible, a company needs to have an actual, conditional or anticipated market-based third-party investment commitment that equals at least 100 percent of the total requested funding.
Who it’s for: Startups in a seed capital financing stage that are committed to successfully growing a start-up company that commercializes a discovery aligned with one of the following Missouri high-tech industry clusters: animal health, plant science, biomedical science, applied engineering, or defense and homeland security.
More information and application

3/ Venture Capital Co-Investment Program
Funding Level:
Growth capital
How it works: Through this program, MTC awards venture capital funds that match other capital investments. To be eligible, a company needs to have identified a potential lead investor with domain expertise in the applicable industry sector of the applicant and/or has performed a significant level of due diligence in the discretion of the MTC. The company also needs to have an actual, conditional or anticipated market-based third-party investment commitment that equals at least 100 percent of the total requested funding.
Who it’s for: High-tech startups that have achieved critical commercialization milestones with seed capital financing and need access to venture capital to grow, add new employees and penetrate the marketplace.
More information and application

4/ High-Tech Industrial Expansion Program
How it works:
Through this program, MTC supports industrial expansion efforts in Missouri that result in significant capital investment and high-paying jobs in its targeted biotech and high-tech clusters with an emphasis on those that leverage Missouri’s rich agricultural history. Funds can be used to purchase equipment, facilitate construction and hire key personnel.
Who it’s for: Missouri-based companies (or companies expanding or relocating operations to Missouri) that can demonstrate a likelihood to increase research and capital investment; strengthen one or more of MTC’s targeted high-tech clusters; create a successful research or intellectual property licensing relationship with a Missouri-based university or similar research institution or establish an internship program to provide career opportunities for high school and/or college students. To be eligible, a company needs to have an actual, conditional, or anticipated third-party funding commitment that equals at least 100 of the total requested HTIE funds and will be contributed to the project in connection with the HTIE funding.
More information and application

Applications are due for the next round of MTC IDEA Funds on February 15. For questions, call (573) 526-0470 or email daniel.kaemmerer@ded.mo.gov.

About Accelerate St. Louis

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Biography

Accelerate St. Louis is the epicenter of innovation for the St. Louis region. It is a regional effort to showcase the startup explosion reshaping the region. Economic development, business, civic, entrepreneurial, political, and venture capital leaders are united in supporting the movement. Accelerate St. Louis provides information and resources to startups, connects entrepreneurs and investors, and helps tell this new St. Louis startup story as it evolves. St. Louis has always fostered a spirit of innovation. Accelerate St. Louis is the place to showcase the best of what is happening right now.

Contact info@acceleratestlouis.org

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