By LAYLA KALINEN
Eagle Times Staff
MONTPELIER, Vt. — On Tuesday, Feb. 6, Gov. Scott announced round one of $29 million in grants and loans through the Vermont Department of Economic Development and Vermont Economic Development Authority’s Venture Capital Program Investments devoted to Vermont entrepreneurs and business startups.
Nick Grimley, the Director of Entrepreneurship and Tech Commercialization for the Vermont Department of Economic Development, said Vermont is experiencing a unique opportunity born from the American Rescue Plan (ARPA), a program formed because of the COVID Recovery Plan to help stabilize all territories in the United States.
“There is about $10 billion in funds specifically earmarked for all 50 states and tribal territories,” Grimley said. “ARPA took a year to form, then another year to get up and running and then another to delegate funding, so it has been quite a journey,”
Applicants have three weeks to put their name in the hat for the first round of Venture Capital Program investments born from the one detail that can be elusive to rural states. Vermont’s State Small Business Credit is giving the state competitive staying power usually only accessible by urban areas.
“Ninety-nine percent of all venture capital usually goes out to only urban areas; specifically three. It goes into Silicon Valley, New York City and Boston,” Grimley said. “This is a great opportunity for both private and nonprofits,” he said, “There are two different programs available. One is the Loan Participation Program through the Vermont Economic Development Authority and the other is the Venture Capital program to be unutilized by both private and nonprofit groups.”
“Vermont has a strong start up culture and the Venture Capital Program is only going to help it grow,” said Gov. Scott. “The Venture Capital Program will help maximize the potential of Vermont’s creative and energetic entrepreneurs, and will fuel our economic growth, benefiting the entire state.”
Gov. Scott said Venture Capital Program recipients will utilize the SSBCI funds on seed fund investments; leveraging accelerator programs to make small investments in rural, pre-seed stage companies; and investments in high-growth, technology innovation companies in the health care sector.
“Vermont has a strong start up culture and the Venture Capital Program is only going to help it grow,” said Governor Scott. “The Venture Capital Program will help maximize the potential of Vermont’s creative and energetic entrepreneurs, and will fuel our economic growth, benefiting the entire state.”
“FreshTracks is excited to participate in this program, matching private investment capital with the SSBCI public funding to launch a new $19 million venture fund called the FreshTracks Green Mountain Fund. This unique program allowed us raise our sixth venture capital fund in half of the time it would normally take”, said Cairn Cross co-founder and managing director of FreshTracks Capital. “We expect to invest in at least 20 start-ups and early-stage Vermont-based companies during the next five years with this new investment vehicle.”
“The Small State Business Credit Initiative is a tremendous opportunity for economic development in a rural state like Vermont,” said Joan Goldstein, Vermont Economic Development Commissioner. “We are grateful for VEDA’s partnership to disburse these SSBCI funds so they can be used to create high-quality jobs and expand economic opportunity.”
There is still $12.5 million in funds remaining to be allocated via the Venture Capital Program and VEDA may select more than one fund manager to manage it.
“The SSBCI venture capital program implemented by VEDA is a unique opportunity for Vermont’s venture capital ecosystem to increase investment in earlier stage companies that demonstrate promise to grow, diversify and strengthen Vermont’s economy,” said Cassie Polhemus, CEO of the Vermont Economic Development Authority. “VEDA welcomes proposals from venture capital fund managers that bring depth and breadth of experience in the start-up community and will provide support and advisory services to guide founders with critical decision making through the stages of growth.”
Potential applicants can reach out to VEDA via email to [email protected] about the Venture Capital Program request for proposal form until Feb. 16. The deadline to submit a proposal is March 1, at 1 p.m.
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