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Here’s the bad news. There are no free rides. No free money either.
But the good news: KCSourceLink’s resource partners can put you on the path to finding legitimate financing for your business.
KCSourceLink’s resource partners can help you find loans, grants and angel funding and venture capital—to commercialize your innovation and turn your idea into a business.
SBIR/STTR Grant Programs
The Small Business Administration’s (SBA) Office of Technology administers the very competitive Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program.
The SBIR program was originally created to provide funding for early-stage innovative ideas that held too much risk for private investors. The STTR program fosters partnerships between small businesses and U.S. research institutions.
Through these programs, SBA ensures that small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts. As the SBA site indicates, the programs award $2 billion to small high-tech businesses.
Kansas City’s Small Business Development Centers (SBDC) and Small Business and Technology Development Centers (SBTDC) can help you determine if you qualify for an SBIR or STTR grant and guide you through the application process.
Kansas: KTEC Investments
KTEC allocates $1.5 million from the state of Kansas every year and makes direct investments in early-stage companies that commercialize unique technologies and have the potential to create high-paying jobs in Kansas.
The Enterprise Center of Johnson County helps Kansas-based companies access KTEC’s matching fund.
Research Development Grant Program
administers research grants to stimulate the development and submission of major multidisciplinary research proposals from investigators in the life sciences to government or private agencies.
Angel funding and venture capital back to top
Angels give wings to entrepreneurs. They provide seed money to business startups—to the tune of tens of thousands to a million dollars or more—in exchange for convertible debt or ownership equity. Some angel investors come together to form angel groups or angel networks to share research and pool investment dollars.
Venture capitalists (or VCs), on the other hand, usually make their capital investments later in the business cycle. They exchange their investment and their expertise for a significant portion of the company’s ownership and significant control over company decisions.
Before you approach an angel investor, angel network, or VC firm, ask yourself and your partners these questions:
- Am I willing to give up some amount of ownership and control of my company?
- Can I demonstrate that my company is likely to realize significant revenues and earnings in the next 3-7 years?
- Can I demonstrate that my company will produce a significant return for investors?
- Am I willing to take the advice from investors and accept board of director decisions I may not always agree with?
- Do I have an exit plan for the company that may mean I’m not involved in 3-7 years?
You’ll need to follow those answers with a solid business plan and an executive summary that includes:
- Financial overview for at least three years out
- Sales and marketing plans
- Three-to-five year goals and your action steps to get there
- Exit strategy
Who can help?
Who: Entrepreneurs of innovative, early-stage, high-growth companies, preferably in Johnson County
ECJC manages the Mid-America Angel network and provides business consulting services to entrepreneurs to help them grow their business or approach angel investors
KBA selectively partners with bioscience companies, research institutions, inventors, entrepreneurs, and investment professionals to advance Kansas’ bioscience industry. They provide grants or other financial assistance to accelerate research, help get products to market more quickly, and promote expansion of bioscience companies in Kansas.
SBIC works to stimulate the national economy and small businesses by supplementing the flow of private equity capital and long-term loan funds for the sound financing, growth, expansion, and modernization of small business operations while insuring the maximum participation of private financing sources.
Kansas City-Area Angel Networks
Mid-America Angels is a regional network of angel investors dedicated to identifying and funding the most promising start-up business opportunities in the Kansas-Missouri Region.
Show Me Angels is a membership organization of accredited private investors committed to investing in high-growth seed and early-stage companies in the Kansas City region.
Women’s Capital Connection is a regional network of accredited angel investors dedicated to identifying and funding the most promising start-up business opportunities in the Kansas-Missouri region. WCC has two primary objectives: 1) to present high return on investment funding opportunities to its members; 2) to facilitate access to early-stage financing for high-potential women-led businesses and entrepreneurs.
Tax Credits for Angels
Kansas Angels Tax Credit is an initiative developed under the Kansas Economic Growth Act. The program is designed to bring together Kansas-based accredited angel investors with Kansas-based, Kansas Technology Enterprise Corporation (KTEC) http://www.ktec.com/-certified companies seeking seed and early stage investment.
Kansas City-Area VC Firms
Advantage Capital Partners provides equity and debt capital, along with value-added counsel and other support, to operating businesses that have the potential for excellent investor returns as well as significant community impact.
Midwest Venture Alliance (member of KTEC Network) is a membership organization of accredited private investors committed to investing in high-growth seed and early-stage technology companies in Kansas.
Open Prairie Ventures provides early-stage venture capital to promising growth technology companies disciplined in efficient use of capital and pursuit of disruptive innovations.
Prolog is a venture capital firm specializing in life sciences that invests in traditional healthcare opportunities as well as emerging areas — such as nutrition, wellness, and green technology.
RiverVest is a venture capital firm focused on identifying and shaping early-stage life science companies to create significant shareholder value.
Kansas City- Area Venture Forums
BIO Mid-America Venture Forum is the Midwest's largest annual event showcasing bioscience, biofuel, and medical device product and platform companies nationwide.
Great Plains Capital Conference brings together the region’s technology leaders, entrepreneurs, and angel investors for presentations by emerging businesses seeking funding. Presenting companies are seeking venture capital from several hundred thousand to $5 million each.
InvestMidwest is annual conference that showcase companies in three industry tracks: life sciences, technology/general business and cleantech/alternative energy. Selected companies present before a prominent audience of venture capitalists, private investors and corporate investors.
Missouri Venture Forum provides a means for investors, entrepreneurs, and business advisors to make mutually beneficial relationships, designed to drive new business formation and growth through networking, education and information exchange.
Springboard Enterprise is the go-to organization for information and support for emerging growth ventures led by women. Springboard educates, showcases, and supports women entrepreneurs as they seek capital and build their businesses.
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