OCAST SEED CAPITAL PROGRAM
What is the OCAST Seed Capital Program?
OCAST’s Seed Capital program has been crafted to be an economic development tool with the goal of making investments in early stage companies engaged in the commercialization of promising new technologies in Oklahoma. The state’s investment serves as the incentive to attract additional private sector investment for these companies as they work to commercialize their products and services. The Seed Capital statutes and the related constitutional amendment allow the state to take an equity or debt position with firms – an authority that is unique to OCAST as a state agency. Required co-investment with the private sector as the majority investor leverages the agency’s investment. Program investments are managed by i2E Inc., a not-for-profit Oklahoma corporation, under contract to OCAST and through their Oklahoma Seed Capital Fund LLC.
Why OCAST Seed Capital?
- In general, investments range from as low as $250,000 to as much as $750,000 or more. It is anticipated that total deal amounts for investments by the Oklahoma Seed Capital Fund will generally be in that range. However, each applicant will be evaluated on a case-by-case basis to determine the optimum funding level.
- The fund will generally invest in a high-tech firm by taking an equity position (stock), or through debt, or both. High-tech firms are defined as those engaged in the design, development and introduction of new products and/or innovative manufacturing processes through the systematic application of scientific and technical knowledge.
- Seed Capital provides the high-risk capital startup companies and existing companies launching a new technology desperately need but is extremely difficult to find.
- i2E will assist companies preparing to pursue this investment capital and can support those companies after receiving investment to ensure they leverage those investment dollars to the greatest extent possible.
Who is Eligible to Apply?
- Oklahoma high-tech firms (start-ups or existing firms seeking to launch a new technology) engaged in producing an innovative product or service with a strong growth potential are eligible for potential fund investment.
- Firms must be in the seed capital stage of development and classified as small in accordance with SBA standards (usually no more than 500 employees).
- Co-Investment. Firms must be able to demonstrate that they are potentially attractive to private co-investors.
How to Apply?
|Oklahoma City Office
840 Research Parkway, Suite 250
Oklahoma City, OK 73104
Toll Free: 800-337-6822
618 E. Third Street, Suite 1
Tulsa, OK 74120
For more information on OCAST sponsored programs, please click here.