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Seed & Venture Capital Finance Resource Center

Seed capital is an initial capital investment into a new business venture or product line. Often, this capital allows an entrepreneur to launch a new venture without drawing upon traditional lending sources. As a general rule, seed capital is provided by private investors in exchange for a high rate of return on their investment. Seed capital recipients are typically businesses or entrepreneurs with less than one year of history. In most cases, they have not yet produced a commercial product or service. Investors often seek an equity or ownership position in the new company. This represents a considerable tradeoff, as the entrepreneur must cede an ownership interest or pay an unusually high rate of return in order to gain access to capital.

Venture capitalists are financiers that take a role in the management of young, growing companies. Venture capital firms are generally private partnerships or corporations funded by private and public pension funds, endowment funds, foundations, corporations, individuals and foreign investors. Venture capital is different from seed capital because venture capital firms typically do not invest in companies until they are somewhat established. Venture capitalists often play a hands-on role in the management of a new, growing company, and may also assist with product development. They typically take a high risk in anticipation of a relatively higher rate of return over a period of time.

Seed and venture capital programs exist throughout the country. While the public sector may help to initiate such programs, they are largely operated by the private sector. Economic development practitioners can help to foster economic activity by steering new companies, entrepreneurs and start-ups towards venture capital and private equity firms in their states or communities. This type of funding is critical in providing capital for emerging businesses.

+Angel Investment Resources

Angel Investment Tax Credits
Catherine Renaul of Innovation Policyworks LLC, provides research and analysis on using angel investment tax credits to incentivize investors.
Implementing Angel Groups And Angel Funds
Building the system, team, and network for angel investing is explained by Jim Troxel of Development Capital Networks.
Angel Capital: What is it? Where is it?
Jim Troxel of Development Capital Networks discusses various angel investing models and success stories along with the resources available to help launch such groups locally.
Valuing a Company - Pricing the Deal
David Thomison of Oklahoma State University breaks down how to value a company, touching upon key equity valuation terms, targeted ROIs, summation methods and more.
Innovation Districts Catalyze Jobs, Creativity, Growth
Cities incubate creativity and serve as labs for innovative ideas and policies. The concept of an Innovation District is one such idea. These districts are creative, energy-laden ecosystems that focus on building partnerships across sectors.
More Angel Investment Resources

+Seed Capital Resources

MI 21st Century Jobs Trust Fund
For most states, promoting entrepreneurship has not been part of the mainstream programmatic efforts of traditional economic-development policy. However certain states, such as Michigan, have had the foresight to support investments which foster an environment supportive of innovation and entrepreneurship.
Valuing a Company - Pricing the Deal
David Thomison of Oklahoma State University breaks down how to value a company, touching upon key equity valuation terms, targeted ROIs, summation methods and more.
Innovation Districts Catalyze Jobs, Creativity, Growth
Cities incubate creativity and serve as labs for innovative ideas and policies. The concept of an Innovation District is one such idea. These districts are creative, energy-laden ecosystems that focus on building partnerships across sectors.
The Rise of Innovation Districts
Innovation Districts are creative urban ecosystems in which city leaders, start-ups, established firms, institutions, skilled workers, and entrepreneurs converge to capitalize upon new ideas and technological breakthroughs. Innovation districts are designed to bridge gaps between fields and make unusual and creative collaboration more likely to happen.
New Jersey Incentives and Workforce Development Guide
Business Facilities provides a list of some of the incentives available for companies in New Jersey.
See More Seed Capital Resources

+Venture Capital Resources

CDFA // BNY Mellon Webcast Series: Capturing the Success of High Performing DFA's
This month’s CDFA // BNY Mellon Development Finance Webcast Series on Capturing the Success of High Performing DFA's featured Tim Fisher of CDFA, Paul Toth of Toledo-Lucas County Port Authority, Gary Smith of Chester County Economic Development Council, Samuele Bozzolla of Allegheny County, and Juan Salgado of Phoenix Industrial Development Authority.
Valuing a Company - Pricing the Deal
David Thomison of Oklahoma State University breaks down how to value a company, touching upon key equity valuation terms, targeted ROIs, summation methods and more.
Innovation Districts Catalyze Jobs, Creativity, Growth
Cities incubate creativity and serve as labs for innovative ideas and policies. The concept of an Innovation District is one such idea. These districts are creative, energy-laden ecosystems that focus on building partnerships across sectors.
The Rise of Innovation Districts
Innovation Districts are creative urban ecosystems in which city leaders, start-ups, established firms, institutions, skilled workers, and entrepreneurs converge to capitalize upon new ideas and technological breakthroughs. Innovation districts are designed to bridge gaps between fields and make unusual and creative collaboration more likely to happen.
New Jersey Incentives and Workforce Development Guide
Business Facilities provides a list of some of the incentives available for companies in New Jersey.
More Venture Capital Resources

+State Sponsored Venture Capital Resources

State and Federal Development Finance Programs
Industry experts from around the state and from various federal agencies will discuss development finance programs and their potential to spur job creation and growth in the economic development industry.
MI 21st Century Jobs Trust Fund
For most states, promoting entrepreneurship has not been part of the mainstream programmatic efforts of traditional economic-development policy. However certain states, such as Michigan, have had the foresight to support investments which foster an environment supportive of innovation and entrepreneurship.
State Sponsored Venture Capital Programs Administered by ADFA
Brad Henry of ADFA describes their multiple programs designed to provide co-investment as a supplement to private capital.
Innovation Districts Catalyze Jobs, Creativity, Growth
Cities incubate creativity and serve as labs for innovative ideas and policies. The concept of an Innovation District is one such idea. These districts are creative, energy-laden ecosystems that focus on building partnerships across sectors.
The Rise of Innovation Districts
Innovation Districts are creative urban ecosystems in which city leaders, start-ups, established firms, institutions, skilled workers, and entrepreneurs converge to capitalize upon new ideas and technological breakthroughs. Innovation districts are designed to bridge gaps between fields and make unusual and creative collaboration more likely to happen.
More State Sponsored Venture Capital

+Case Studies

Seed & Venture Capital are flexible and efficient tools for transformation. CDFA has collected dozens of case study examples.

Innovation Districts Catalyze Jobs, Creativity, Growth
Cities incubate creativity and serve as labs for innovative ideas and policies. The concept of an Innovation District is one such idea. These districts are creative, energy-laden ecosystems that focus on building partnerships across sectors.
The Rise of Innovation Districts
Innovation Districts are creative urban ecosystems in which city leaders, start-ups, established firms, institutions, skilled workers, and entrepreneurs converge to capitalize upon new ideas and technological breakthroughs. Innovation districts are designed to bridge gaps between fields and make unusual and creative collaboration more likely to happen.
Locally Supported Seed, Angel & Venture Capital
Greg Daniels with Squire Patton Boggs explains the how to support seed, angel and venture capital locally with public and private dollars. He uses Ohio Capital Fund as an example and how the finance is structured.
Angel Capital: What is it? Where is it? Best Practices to Form and Manage Angel Groups and Funds
Jim Troxel with Cimarron Capital Partners explains the concepts behind angel investors, defining the characteristics, liquidity options, best practices and more.
2017 CDFA Pennsylvania Financing Roundtable Webinar
This webinar features a number of economic development finance experts from around the state discussing development finance tools, authorities, resources and approaches, and how these can affect the Pennsylvania economy going forward. Learn from expert speakers Thomas Henson with NW Capital Markets, David Langlieb with Philadelphia Industrial Development Corporation, Melissa Stone with Harrisburg Regional Chamber, and Ryan Unger with Team Pennsylvania.
More Case Studies

+Headlines

Seed & Venture Capital are essential components of the development finance toolbox, and CDFA collects headlines on projects and news that use these tools daily.

More Headlines

+Training Courses

A critical component of the development finance toolbox, innovation finance provides access to capital for entrepreneurs, new technology ventures, and emerging small businesses. The CDFA Seed & Venture Capital Finance Course explores the growing seed, venture capital and angel investment industry and provides clear direction for designing and implementing capital formation models at the local, regional, and state levels. This course differs from other capital formation curriculums in that it focuses more concretely on designing a program that uses public-sector connections, resources and coordination to drive long-term and sustainable private-sector investment. 

+Webcasts

Downtown Redevelopment Districts Webcast
This Ohio focused webcast features a discussion on the recently passed the new Downtown Redevelopment District legislation (HB 233) that provides new tools, including property assessment and TIF-like provisions, available to rehabilitate historic buildings, promote economic development, and advance innovation.
CDFA-BNY Mellon Webcast Series: Publicly Supported Seed & Venture Capital
During this installment of the CDFA//BNY Mellon Development Finance Webcast Series, state leaders evaluated funds managed by public sector participants, discussed their role in complementing private VC funds, and considered which types of businesses are receiving the most interest from investors.
CDFA-Stifel Nicolaus Webcast: Emerging International Finance Models
Recently, international models of finance have emerged that present potential new structures that might be deployed in the U.S. During this webcast, international speakers share presentations covering their organizations and successful financing models.
CDFA-BNY Mellon Webcast Series: Introducing Innovation Bonds
Historically, research and development of cutting edge biotechnology and pharmaceutical products has been funded through a complex and protracted system of federal grants and contracts. During this CDFA-BNY Mellon webcast, speakers explained Innovation Bonds and showcased the variety of projects this tool could support.

CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • Ballard Spahr LLP
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd, LLC
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • MB Financial Bank, NA
  • McCarter & English, LLP
  • McGuireWoods
  • NW Financial Group, LLC
  • SB Friedman Development Advisors
  • Squire Patton Boggs
  • Stern Brothers & Co.
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
Become a Sponsor