Emerging Technology Funds

The State of Delaware is focused on creating an environment that supports the growth of technology-based companies. As a key component of the Governor's New Economy Initiative, the Delaware Economic Development Office (DEDO) offers the Emerging Technology Funds - Technology Based Seed Funds (TBSF I and TBSF II) and Pre-Venture Fund to foster creation of technology-based start-ups in fields such as biotechnology, advanced materials, clean energy, information technology, and new chemical applications. The goal of these funds is to invest in "gazelle-like" entrepreneurial projects positioned for fast-growth and wealth creation. An investment from the fund will be the catalyst for an entrepreneur to start a business and a starting point to raise capital. It will give entrepreneurs a "Stamp of Approval" when entering the fund raising market. Companies must become Delaware-based companies prior to funding.

• TBSF (I and II)
  Provides seed equity financing up to $50,000 (TBSF I) or $100,000 (TBSF II) for start-up related expenses such as, lab equipment, working capital, office space, and patents, etc. or for a later stage in the life of a start-up company for expenses related to prototype development, prototype testing costs, etc.
• Pre-Venture
  Provides debt and equity financing between $150,000 up to $1,000,000 to bridge the gap that most start-ups face from point A - acquisition of seed capital to point B - going to the private markets for additional funding.

Investment Process - The first step is to submit a business plan with a completed Tech-Based Seed Fund Application or Pre-Venture Fund Application. A technology review and due diligence process will be completed based on the application and the business plan. Upon approval, applicants will make a presentation to the Seed Fund or the Pre-Venture Fund Advisory Board, which makes an investment decision. The final step is the presentation to and the receipt of a recommendation for approval from the Council on Development Finance committee. The application and investment process will take approximately 90 days or more to complete. The investment structure of each deal is not standardized and the fund structures each deal in the most appropriate manner.

To get more information on the program, contact Joe Zilcosky, Emerging Technology Specialist at (302) 672-6818 or by email at joe.zilcosky@state.de.us.