Codefi launches southern Missouri investment fund

Cape Girardeau-based technology incubator Codefi Foundation on Rural Innovation has launched a new southern Missouri investment fund.

Innovate SOMO Funds, which has a starting size of $2 million from nonprofit and for-profit sources, seeks to invest in startups in the 47 southernmost counties served by the Southern Missouri Innovation Network, according to a news release. The Southern Missouri Innovation Network, aka Innovate SOMO, is an existing partnership with Missouri State University's Efactory.

"Tech ecosystems beyond the major financial centers are often starved for the type of early-stage, risk-tolerant capital and comprehensive support required to translate great ideas into sustainable, job-creating enterprises," said James Stapleton, Codefi’s president and CEO, in the release. "These funds are specifically designed to catalyze opportunity in these overlooked geographies, where there is tremendous philanthropy and interest in economic diversity and growth."

As part of Innovate SOMO Funds, Springfield Innovation Inc. subsidiary Accelerate SGF Inc. is transferring ownership of previous investments made through the Efactory business accelerator program. Crystal Owens, head of startup programs for Codefi, said Accelerate SGF is donating its $30,000 equity investments in 21 startups, as well as $100,000 in cash, to Innovate SOMO Funds.

Innovate SOMO Funds – which combine a nonprofit fund from charitable contributions and a for-profit fund backed by limited partners – have additionally received $700,000 in commitments. The Springfield-based Hatch Foundation is among investment leaders in the fund.

"Our foundation is pleased to invest in supporting the next generation of entrepreneurs and the companies they inspire, that will create more high-quality occupations for the people living in our communities," said Erin Danastasio, executive director of the Hatch Foundation, in the release. “We also think it's important this is a broad regional effort and invite others across southern Missouri to join us in supporting it.”