Local Seed Fund Raised to Support Iowa Entrepreneurs
CEDAR RAPIDS, IA—AUGUST 28, 2007— The Entrepreneurial Development Center (EDC), a not-for-profit Iowa business accelerator, announced today that Iowa Seed Fund LLC has successfully broken escrow at $1.25 million on a seed fund to help qualified area entrepreneurs grow their companies. The fund is designed to fill a gap in early stage funding and to make equity investments in Iowa’s interstate commerce, high-growth potential companies.
Fund manager and EDC’s president and CEO, Curt Nelson, says that this has been a recognized need since the EDC was founded nearly four years ago. “Once the entrepreneurs tap out the funds available via friends and family, there just aren’t a lot of resources out there to help them perform feasibility research, create prototypes or cover early marketing or operational expenses,” said Nelson. “It’s our hope that the combination of our mentoring program and more of the necessary resources, such as this fund, will make Iowa’s entrepreneurs increasingly successful.”
“The fund is fueled by many area accredited investors, both private and institutional. Cedar Rapids Bank & Trust (CRB&T) was the first of many banks to commit to the seed fund,” said Miriam Ubben, EDC’s Vice President of Capital Formation.
Larry Helling, President & CEO of CRB&T and the current Chair of EDC is pleased to have been a charter investor, “Small business is the lifeblood of this community and early stage capital is a critical need. We are excited about the difference that the Iowa Seed Fund will make in our community.”
Iowa Seed Fund is a Qualified Community Seed Fund as defined by House File 2271, which allows investors / investments to receive a 20% state tax credit. This program was created in 2002 to stimulate Iowa’s investment in new business creation. Qualified Community Seed Funds can raise up to $3 million per fund.
The Iowa Seed Fund’s investment committee is comprised of seasoned investors including Paul Rhines, AAVIN Equity Advisors, Terry Sullivan, Central Iowa Power Cooperative/Iowa Capital Corporation, Dave Sengpiel, Iowa Farm Bureau Federation, and Dick Schwab, past president of the Eastern Iowa Angel Investors.
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).
