The eFactory secured a $150,000 lead investment to create an accelerator program and seed capital fund.
RMI, a small-business lender, will present the check April 16 at Missouri State University’s business incubator, 405 N. Jefferson Ave., according to a news release.
“Early-stage funding is imperative for startup and emerging companies to achieve a level of preparation and proof of concept necessary to realistically pursue significant rounds of funding,” eFactory Director Brian Kincaid said in the release. “Access to seed capital and complementary programs is critical (in) the development of a nationally renowned culture of entrepreneurship and innovation that can serve as a competitive advantage and sustainable asset for Springfield.”
The announcement comes a day after Springfield Business Journal published the article, “
The Startup Funding Web,” in which eFactory entrepreneurial specialist Rachel Anderson said officials with the downtown center were discussing an accelerator-type program.
“An accelerator is usually a shorter time period, maybe three to four months, to quickly help grow a company to the next stage. There is usually some sort of equity piece or investment that comes with an accelerator,” Anderson said in the article. “Our [incubator] model’s over a long period of time, three to five years is typical, where companies can really eliminate some of the risk that you might have with other leases or being out on your own so you can grow your business.”
Under the partnership with RMI, companies can apply for the accelerator at The eFactory through a competitive process; they’ll be chosen by an investment advisory board comprising seed-fund investors and business and community leaders. Selected companies will receive $30,000 in seed funding, project-based mentorship, office space at The eFactory, networking opportunities and chances for follow-up opportunities during the extent of the 12-week program, according to the release.
“We’re excited to be part of entrepreneurial culture in southwest Missouri and are pleased to help fill the need for startup and emerging companies to be able to develop their proof-of-concept business ideas, small-scale implementation and preparation for follow-on funding,” RMI CEO Ken Lueckenotte said in the release.
Jefferson City-based nonprofit
RMI makes U.S. Small Business Administration 504 loans statewide.
At least two startups with ties to Springfield have participated in accelerator programs. Last spring, CellARide LLC completed a 12-week program with St. Louis tech accelerator Capital Innovators Accelerator LLC. Anderson’s startup, Alumni Spaces, is currently participating in the New York-based Entrepreneur’s Roundtable Accelerator, according to
SBJ archives.[[In-content Ad]]
