Iowa Seed Fund LLC Makes Investments in Cedar Rapids Area Businesses
CEDAR RAPIDS, IA—DECEMBER 17, 2008—The Entrepreneurial Development Center (EDC), a not-for-profit Iowa business accelerator, announced today that Iowa Seed Fund LLC has made two investments: HH Ventures of Hiawatha, IA, and Cognitive Media of Cedar Rapids, IA. HH Ventures has received working capital to accelerate its pre-paid wireless business. Cognitive Media has also received working capital to scale its “brain boosting” entertainment products and services.
The Iowa Seed Fund LLC fund is designed to fill a gap in early stage funding and to make capital investments in Iowa's interstate commerce, high-impact 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 the recent Iowa Seed Fund investments are an important component of our community's support for local entrepreneurs. "When entrepreneurs need very early-stage capital to scale their businesses, funds like the Iowa Seed Fund LLC are critical. Such investments will help both HH Ventures and Cognitive Media at a point in time that is pivotal to their growth. Ultimately, investments like these will serve to boost our area’s economic vitality by creating companies that grow into significant economic engines, creating quality jobs and generating wealth for community reinvestment."
HH Ventures, LLC dba Ready Mobile collects, refurbishes and sells pre-paid wireless handsets, as well as airtime, through national convenience and value retail chains. All aspects of category management and logistics are managed on behalf of the retailer, powered by the Company's proprietary software infrastructure. “The investment from Iowa Seed Fund LLC, coupled with the mentoring and guidance from the EDC, allows HH Ventures to put its best foot forward as we continue to grow and scale our business,” said Dennis Henderson, Co-founder and President of HH Ventures.
Cognitive Media, Inc., founded by tech and media executives, Joan Severson and Vaughn Halyard, provides interactive entertainment products and services specifically targeted for brain fitness. From Baby Boomers to collegiate exam takers, Cognitive Media is providing its customers with scientific, research-based entertainment experiences that maintain and improve cognitive health. “This investment, made in conjunction with Iowa First Capital Fund, managed by Corridor Management Company, provides the critical capital needed to bring our new business to life,” said Joan Severson, Founder of Cognitive Media. “Early-stage seed capital is vital to creating new companies in our area and we are grateful that this level of funding was available.”
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 2007.
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 360 Iowa-headquartered businesses. Its focus is on creating local wealth for area re-investment by growing and cultivating regional, national, and international businesses. Visit www.edcinc.org for details.
