Seed Capital Investments

The purpose of the Seed Capital Investment Program (SCIP) is to foster the formation and development of innovative, technology-based enterprises that will stimulate the economy of Arkansas by creating high-wage employment, leverage private investment, increase tax revenues and advance the benefits and opportunities realized through advanced science and technology.

SCIP investments are generally made on a royalty basis with a 4x repayment mechanism, however, the investments can be in the form of the following qualified securities including, without limitation:

• Debt financing
• Equity financing
• Royalty participation
• Stock appreciation or
• A combination of such financing arrangements
  

Enterprise eligibility requirements include the following:

• The enterprise’s principal place of business is in Arkansas
• The project of the enterprise shall be scientific or technological or both, in nature and promote the purpose of AEDC by providing scientific and technological benefits to Arkansas
• The enterprise shall complete the application submittal process delineated in Section II.A.(iii) of these rules and
• Not more than $500,000 shall be invested by AEDC in the qualified securities of any one (1) enterprise

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