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 Braden Duke at [email protected].