Cabinet for Economic Development
Gov. Beshear Unveils VenCap Kentucky to Support Entrepreneurs
Program encourages private investment in small businesses
FRANKFORT, Ky. (Jan. 7, 2015) –
It’s becoming easier for investors to
support Kentucky’s small businesses. Governor Steve Beshear today announced
VenCap Kentucky, a new program designed to encourage small business and
economic growth in the Commonwealth.
Kentucky provides venture capital funding to Kentucky companies with a mature
proof of concept that have a lead investor but need additional support. The
program uses U.S. Treasury funds to match the private investment, up to
$500,000, which is likely to make the company more appealing to other potential
statewide program, VenCap Kentucky was established by the Kentucky Cabinet for
Economic Development and is administered through the University of Louisville
Foundation. Applicants must be recommended by one of the approved sourcing
partners, which include the Kentucky
Innovation Network, Nucleus and MetaCyte.
“Private investment is a critical component of Kentucky’s
strong small business ecosystem,” said Gov. Beshear. “VenCap Kentucky gives
incentive for investors to support entrepreneurs and small businesses across
the Commonwealth and to invest in Kentucky’s future. I look forward to seeing
more small businesses and more jobs as a result of this program.”
general, startup, early-stage and mid-stage businesses with high growth
potential that are not yet ready for bank loans are best suited for the
program. To be eligible, a small business must be based in the Commonwealth,
have fewer than 500 employees and already have identified a lead investor. At
least half of the company’s employees also must be Kentucky residents.
UofL Foundation is pleased to be a partner in this innovative new program” said
UofL President James Ramsey. “We can help Kentucky businessmen and women cut
through the red tape as they pursue the funding they need to grow their
companies and Kentucky’s economy.”
Kentucky is one in a series of programs designed to help small businesses
obtain financial support. The following is a list of additional programs:
Angel Tax Credit: Allows individual angel investors to
receive tax credits. Angel investors can receive a tax credit of up to 50
percent of their investment in counties with high unemployment rates, or
enhanced counties, and 40 percent in all other counties.
Small Business Tax Credit Program (KSBTC): Small
businesses can be eligible for tax breaks for hiring one employee and
purchasing new technology or equipment.
Small Business Credit Initiative (KSBCI): Enables lenders
to finance creditworthy small businesses that fall just short of the normal
underwriting standards. U.S. Treasury funds are used to reduce the risk
participating lenders assume when making loans.
Small Business Innovation Research and Small Business Technology Transfer
Matching Funds program (SBIR-STTR): This program
matches federal funds awarded to help high-tech startups develop business
concepts, research their ideas and ultimately, create products and jobs.
Angel Investors Network: Last year, Gov. Beshear created
the Kentucky Angel Investors Network, which brings entrepreneurs and accredited
investors together via monthly online meetings.
more information on VenCap Kentucky, visit www.VenCapKentucky.com
more about Kentucky’s other small business support programs here.
on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans
of the Cabinet for Economic Development can also join the discussion on Facebook
or follow on Twitter.
Watch the Cabinet’s “This is My Kentucky” video on YouTube.