Eligible Businesses: |
Businesses with a distinct competitive advantage in a strong marketplace. The business must employ 50 or fewer or have gross sales of $5,000,000 or less within the past 12 months. Borrower must be engaged or involved in at least one of the following industries: Marine Science, Biotechnology, Manufacturing, Exporting, Software Development, Environmental Sciences, Value-Added Natural Resources and/or other enterprises that the Board determines will further the purposes and intent of the program.
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Program Summary: |
This "patient" venture capital fund provides financing for small Maine companies that demonstrate a potential for high growth and public benefit. The fund will seek high returns on investment. The investment structure is typically convertible preferred stock. The fund may invest up to a maximum of $500,000, which must be matched with other financing sources. |
| Process: |
If an interested company meets the eligibility criteria, the Board may agree to explore the investment opportunity. The company would then submit their business plan, along with a brief application, and then make a brief presentation to the Board. If, after this presentation, the Board decides to pursue the investment opportunity, intensive "due diligence" would commence. |
Program Example: |
A company manufactures and develops immunoassay test kits for herbicides and is seeking funding to expand product sales, increase production or develop additional products. There is a strong market for the product, the company has an excellent management team in place, and the capitalization plans of the company are sound. The SEGF purchases $400,000 of the company's Series A preferred stock, another $400,000 of which is purchased by a third party.
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