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Angel Investment

Angel Capital Association

www.angelcapitalassociation.com

The Angel Capital Association is a network of 14,000+ accredited angel investors. The ACA’s website allows individuals to find angel investors and learn more about angel investing.

Ark Angel Alliance

www.arkangelalliance.org

The Ark Angel Alliance supports investment of startup companies and supports angel investors through development opportunities.

Arkansas Chartered Banks

A full list of Arkansas-chartered banks can be found on the Arkansas State Bank Department's website. Click here to view the list

Commercialization

Equity Investment Tax Credit (EITC) 

Section 1

An eligible business must be defined as a Targeted Emerging Sectors.

Emerging technology sectors are:

1. Advanced materials and manufacturing systems

2. Agriculture, food and environmental sciences

3. Biotechnology, bioengineering and life sciences

4. Information technology

5. Transportation logistics

6. Bio-based products

If a business falls within one or more of the targeted areas, additional eligibility criteria are:

  • The business must have an annual payroll of not less than $100,000 or more than $1 million
  • The business must show proof of an equity investment of at least $250,000
  • The business must pay wages that are at least 150% of the lesser of the state or county average wage where the business is located

Section 2

If the business does not meet the above requirements, it can still be deemed an eligible business if; it has received or receives assistance in the form of equity investment from capital investment funds that target early-stage businesses and start-up businesses. The business must also pay 150% of the state or county average wage, whichever is lower, and it must meet two of the following conditions.

  • The business is in one of the Emerging Targeted Sectors listed above.
  • The business is identified in a local or regional economic development plan as the type of business targeted for recruitment or growth within the community or region.
  • The business is supported by a resolution of the city council or quorum court in the municipality or county in which the business is located or plans to locate.
  • The business is supported by business incubators that are certified by the Arkansas Science and Technology Authority
  • The business is supported by federal small business innovation research grants.
  • The business is supported by technology development or seed capital investments made by instrumentalities of Arkansas.

The EITC will be provided in the form of state income tax credits to persons or companies investing in certain types of eligible businesses. The tax credit is equal to thirty-three and one-third percent (33 1/3%) of the approved amount invested by an investor in an eligible business. This credit is transferable, which means it can be sold. It may only be sold once, and it must be sold within one year of earning the credit. The credit shall only be awarded at the discretion of the Executive Director of the Arkansas Economic Development Commission. The income tax credit earned may be used to offset 50% of the investor’s Arkansas income tax liability in any one tax year. Any unused credit may be carried forward for a period of nine years.

Seed Capital Investment Program (SCIP)

The SCIP is a direct investment by the state to help Arkansas technology-based companies with initial capitalization. This program helps companies reach the point of commercialization, including development and refinement of a product. It is for companies that cannot secure sufficient capital through traditional capital sources. This program may be in the form of debt financing, equity financing, a royalty participation agreement, or a combination of such financing agreements up to $500,000 (but usually in smaller staged tranches). SCIP investments are generally structured as royalty-based investments.

For more information, contact Bob Kucheravy at [email protected].

 

Technology Development Program (TDP)

The Technology Development Program (TDP) provides royalty financing for qualified science and technology projects with a potential for economic and employment growth in the state of Arkansas. The goal of the Technology Development Program is to assist in developing and commercializing new technology-based products and processes. This means that applications for award must have a well-defined project plan showing progression from idea, to prototype, to production. The total maximum award for the development of a given technology is $100,000 with a royalty rate of 0%-5% and an end date of 10 years.

This program is a direct investment by the state to help develop or validate a technology for commercialization. The TDP program is flexible, and it has been used it to bridge funding gaps in SBIR Phase I and II grants, to create prototypes, to develop commercial applications for new technology, or to pay for the validation of university technology. Because this program is meant to cover gaps in funding, the Technology Development Program cannot be awarded to projects that are eligible for other programs.

For more information, contact Bob Kucheravy at [email protected].

Technology Transfer Assistance Grant

The TTAG Program is a matching grant program created to encourage the transfer and deployment of innovative technology into an Arkansas-based business or for the creation of commercial technology through the federal SBIR program. The AEDC will fund up to $3,750 of costs associated with transferring new or existing technology from a qualified applicant — such as a public or private enterprise, laboratory, college, or university — to an enterprise based in Arkansas. Up to $5,000 of total project costs will be considered, with the first $2,500 funded by the AEDC; the remaining $2,500 is cost-shared equally (50:50) between the AEDC and the enterprise. Each enterprise is eligible to receive assistance for two technology transfer projects per state fiscal year. Projects are evaluated on a competitive basis.

TTAG grants are awarded to the technology transfer resource provider. The resource provider must possess the capability to locate and transfer innovative technology and transfer it to a specific Arkansas-based enterprise. In certain cases, to be determined on a case-by-case basis, the resource provider could be the company requesting assistance if they have the capability to locate and transfer the innovative technology. The technology being transferred must resolve a company’s technology-based problem, issue, or concern.

TTAG grant awards can be used to fund costs associated with engineering or technical support fees, database searches, travel, responses to the Small Business Innovation Research Program (SBIR), Small Business Technology Transfer Program (STTR) or the Advanced Technology Program (ATP) and other costs to be decided on a case-by-case basis. TTAG grant awards will not fund costs associated with fixed assets for an enterprise or costs associated primarily with training. TTAG grant awards can also be used by a business to obtain technical assistance from a university.

For more information, contact Bob Kucheravy at [email protected].

Loans

Arkansas Capital Corporation

www.arcapital.com

A private, nonprofit lending corporation, Arkansas Capital Corporation provides flexible financing through loans for small and large businesses.

Communities Unlimited

www.communitiesu.org

Communities Unlimited is the southern regional partner of the Rural Community Assistance Partnership. The nonprofit helps to build small businesses in rural communities by making loans of $1,000 to $100,000 to fill in gaps in small business financing.

FORGE Community Loan Fund

www.forgefund.org

The FORGE Community Loan Fund lends money to individuals, small businesses, and farms in Arkansas, Oklahoma, and Missouri.

Kiva Little Rock Hub

www.kivalittlerock.org

Kiva is a microlending platform that allows entrepreneurs to raise up to $15,000 at 0% interest and no fees for up to three years from the local community.

Kiva Northwest Arkansas Hub

www.kiva-nwa.org

Kiva is a microlending platform that allows entrepreneurs to raise up to $15,000 at 0% interest and no fees for up to three years from the local community.

U.S. Small Business Administration

www.sba.gov/funding-programs/loans/lender-match

The U.S. Small Business Administration helps small business owners and entrepreneurs get matched to potential lenders offering SBA-backed funding through Lender Match.

Grants

Challenge.gov

www.challenge.gov

This is the official hub for challenges and prize competitions across the federal government.

Economic Development Administration

www.eda.gov

The EDA focuses on increasing innovation and regional collaboration to build a foundation for sustainable job growth and strong regional economies in the United States.

Grants.gov

www.grants.com

This is the access point for grants administered by the federal government.

U.S. Small Business Administration

www.sba.gov/funding-programs/grants

The SBA provides limited small business grants and grants to states and eligible community organizations to promote entrepreneurship.

Seed Funding

Rise of the Rest Seed Fund

www.revolution.com/entity/rotr

The Rise of the Rest Seed Fund invests catalytic capital in the most promising seed-stage companies located outside of Silicon Valley, New York City, and Boston

Specialty Funding

Small Business Innovation Research Program

www.sbir.gov

The SBIR program is a competitive program that encourages small businesses to perform research and development and commercialize their findings.

Small Business Technology Transfer Program

www.sbir.gov

The STTR program is a sister program to the SBIR program, which requires small businesses to partner with research institutions.

State Grade and Export Grant

www.arwtc.org/step

This program helps businesses fund export initiatives such as trade shows and exhibitions, inbound and outbound trade missions, consulting, website translations, marketing media, and other export initiatives to promote products or services internationally.

Venture Capital

Arkansas Capital Corporation

www.arcapital.com

A private, nonprofit lending corporation, Arkansas Capital Corporation provides flexible financing through loans for small and large businesses.

Arkansas Venture Capital Development Fund

This fund provides matching investments in Arkansas technology-based companies, in various stages of growth and development, that are seeking private equity funding from angel, seed, and venture capital investors.

Learn more about the fund here.

Arkansas Venture Development Fund

This fund provides matching investment in proven, professionally managed private equity and venture capital funds, located either within or outside the State of Arkansas, that commit to aggressive and visible deal prospecting, and direct investment in Arkansas companies along with investment in out of state companies.

Learn more about the fund here.

Cadron Capital Partners

www.cadroncapital.com

Cadron Capital invests in growth-oriented technology and technology-enabled ventures.

Natural Capital

www.naturalcapitalfirm.com

Natural Capital is a private investment firm focusing on real estate, lower middle market businesses, and investment funds.

NewRoad Capital Partners

www.newroadcp.com

NewRoad Capital Partners is an investment firm focusing on supply chain and logistics, retail technology, and marketing technology companies.

Plug and Play Ventures

www.plugandplaytechcenter.com/ventures

Plug and Play Ventures aims to fund companies that are “building the defensible businesses of the future.”

RZC Investments

www.runwaynwa.com/new-ventures-and-investments/#gf_3

RZC is an investment firm that injects capital into operating companies, focusing the following industries: consumer, outdoor and recreation, B2B services, healthcare, and industrial and financial technologies.

 SymBiosis Capital Management

www.symbiosis.vc

SymBiosis Capital Management is a venture capital firm focused on advancing biotherapeutics innovations. SymBiosis invests across disease area, financing stage, and geography, with a focus on programs in, or about to enter, human trials.

Tusk Private Investment

www.tuskinvestment.com

Tusk Investment is a private investment firm that focuses on investing, acquiring, and scaling privately held operating businesses. The firm focuses on the following industries: business services, new-age retail and hospitality, consumer products, e-commerce, supply chain and logistics, healthcare, education, and technology-enabled business solutions.