Community Angel Fund, Iowa Seed Fund Llc, Makes Initial Investments
CEDAR RAPIDS, IA-DECEMBER 20, 2007- The Entrepreneurial Development Center (EDC), a not-for-profit Iowa business accelerator, announced today that Iowa Seed Fund LLC has made two investments: Reference LLC, based in Elkader, Iowa and Express Auto Delivery (EAD) of Cedar Rapids. Reference LLC has received $100,000 in working capital to accelerate its business of designing and manufacturing state-of-the-art accelerometers and data loggers, which measure dynamic movement. EAD has also received $100,000 in working capital from Iowa Seed Fund LLC to help the company to continue to scale its logistics management services for the U.S. vehicle shipping marketplace.
The fund is designed to fill a gap in early stage funding and to make capital investments in Iowa's interstate commerce, high-growth potential companies. Both companies are active clients of the Entrepreneurial Development Center where they are receiving ongoing mentoring and assistance with their respective acceleration plans.
Fund manager and EDC's President and CEO, Curt Nelson, says that this exactly what the fund was designed to do. "When entrepreneurs are trying to scale their businesses, capital is very necessary to their survival. This fund is helping both Reference and EAD with a cash infusion at a point in time that is pivotal to their growth."
Reference LLC (www.sensr.com) began operations in late 2003 as a contract engineering business, but since that time has identified unsatisfied market opportunities including structural assessment, transit monitoring, bridge health monitoring and amusement park inspection, to name a few. Its accelerometer and data logger products leverage the latest MEMS technology to provide smaller, more flexible devices at prices significantly lower than traditional competitors. The combined capital investment from previously announced Iowa Farm Bureau's Rural Vitality Fund and the Iowa Seed Fund will be used to hire additional staff, expand marketing efforts and scale its operations to meet accelerating demand.
"The combination of EDC and the new Iowa Seed Fund LLC is of significant value to our ability to grow in both capability and capital investment," said Chris Kavars, Reference LLC President and CEO.
Just last week Express Auto Delivery (www.expressautodelivery.com) announced a business expansion fueled by a major capital investment partnership between Iowa Farm Bureau Federation and the Iowa Seed Fund, LLC. The capital investment will allow Express Auto Delivery to fully lever its proven logistics model and execute its high-growth expansion plans. Expansion plans include hiring additional staff, accelerating its nationwide marketing campaign efforts, and scaling its operations to better serve its rapidly increasing customer base.
Iowa Seed Fund is a Qualified Community Seed Fund as defined by House File 2271. Qualified Community Seed Funds can raise up to $3 million per fund. Iowa Seed Fund LLC announced it broke escrow at $1.25 million in August of this year.
About the EDC
The Entrepreneurial Development Center was incorporated in 2003 as a community-sponsored, non-profit business accelerator. The company provides economic growth through the development and expansion of entrepreneurial enterprises and has successfully assisted over 300 Iowa-headquartered businesses. Its focus is on creating local wealth for area re-investment by growing and cultivating regional, national, and international businesses. In 2006, the EDC expanded its reach to rural Iowa businesses through the Iowa Farm Bureau Federation's Renew Rural Iowa initiative (www.iowafarmbureau.com/renewruraliowa).
For more information please visit www.edcinc.org
