About

Advocacy

Events

Membership

Sponsor

Education

Newsletters

Resources

Technical Assistance

×

Seed & Venture Capital Resource Center

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.


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.


Want regular updates on Seed and Venture Capital and other development finance tools? Subscribe to one of CDFA's Newsletters.

-Understanding Seed & Venture Capital

Interested in learning about financing small business? This section contains resources on understanding the basics of Seed & Venture Capital.

Access to Capital and Credit in Native CommunitiesMembers only Login
This document, “Access to Capital and Credit in Native Communities: A Data Review” (Data Review) begins to answer the questions: Where does Native America stand now in terms of capital and credit access? What has been the effect of new action and new approaches by policymakers and financial entrepreneurs? What are Native Communities’ ongoing and future capital and needs?
State Strategies to Help Businesses Launch and ExpandMembers only Login
This report, produced by The PEW Charitable Trusts, examines how state governments can find solutions to policies that undermine opportunities for investment and job creation when businesses spend too much time or money on inefficient regulatory processes, or when new business projects get delayed because firms don’t understand how to comply with the rules.
Strengthening Access to Capital ProgramsMembers only Login
Vincent DiCara, Owner of DiCara Training and Consulting, LLC, discusses access to capital and the benefits of leveraging public sector support for even greater private sector investment and explore a variety of programs available in the region.
Unlocking Capital AccessMembers only Login
Representatives from the California Association of Micro Enterprise Opportunity and California Pollution Control Financing Authority look at how California creates access to capital for micro businesses and enterprises.
Access to Capital for Small, Middle Market CompaniesMembers only Login
Gene King of Sequence Holdings LLC, discusses in detail various capital access methods and structures for small and middle market companies.

-Resources

View all Access to Capital Resources

-Angel Investment

Analysis of Updated SSBCI Guidelines
CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. CDFA along with representatives from Treasury discussed key provisions in the updated guidance and fielded questions from attendees.
SSBCI Implementation Guidance Highlight Summary and Reader’s Guide - gener8tor
Gener8tor produced this summary/reading guide of the SSBCI guidance that the U.S. Department of the Treasury released on November 10, 2021.
CDFA's Analysis of Capital Program Policy Guidelines for the State Small Business Credit Initiative
CDFA’s analysis of the November 2021 SSBCI Capital Program Policy Guidelines is meant to provide a high-level overview of key provisions and is not comprehensive of all updates and changes to the April 2014 policy guidelines.
Angel Funders Report 2021Members only Login
The Angel Funders Report 2021, published by the Angel Capital Association, uses verified data provided directly by active angel investing groups. The report is based on information collected from a variety of ACA member groups, including some of the most active investing communities. It analyzes angel capital investments made during 2020, and features profiles and insights from leading angel investors and startup company executives.
View More Angel Investment Resources

-Seed Capital

Analysis of Updated SSBCI Guidelines
CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. CDFA along with representatives from Treasury discussed key provisions in the updated guidance and fielded questions from attendees.
SSBCI Implementation Guidance Highlight Summary and Reader’s Guide - gener8tor
Gener8tor produced this summary/reading guide of the SSBCI guidance that the U.S. Department of the Treasury released on November 10, 2021.
CDFA's Analysis of Capital Program Policy Guidelines for the State Small Business Credit Initiative
CDFA’s analysis of the November 2021 SSBCI Capital Program Policy Guidelines is meant to provide a high-level overview of key provisions and is not comprehensive of all updates and changes to the April 2014 policy guidelines.
SSBCI General Info Fact Sheet (2021)
The American Rescue Plan Act of 2021 (ARPA) reauthorizes and amends the State Small Business Credit Initiative (SSBCI) Program. ARPA provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to help address the economic fallout of the pandemic and lay the foundation for a strong and equitable recovery by providing direct support to jurisdictions for programs that increase access to credit for small businesses.
View More Seed Capital Resources

-Venture Capital

Analysis of Updated SSBCI Guidelines
CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. CDFA along with representatives from Treasury discussed key provisions in the updated guidance and fielded questions from attendees.
SSBCI Implementation Guidance Highlight Summary and Reader’s Guide - gener8tor
Gener8tor produced this summary/reading guide of the SSBCI guidance that the U.S. Department of the Treasury released on November 10, 2021.
SSBCI Programs Fact Sheet - November 2021
This November 2021 Fact Sheet from the U.S. Department of the Treasury discusses the five types of SSBCI programs. The programs available under SSBCI are 1) Venture Capital Programs, 2) Loan Participation Programs, 3) Loan Guarantee Programs, 4) Collateral Support Programs, and 5) Capital Access Programs (CAPs).
CDFA's Analysis of Capital Program Policy Guidelines for the State Small Business Credit Initiative
CDFA’s analysis of the November 2021 SSBCI Capital Program Policy Guidelines is meant to provide a high-level overview of key provisions and is not comprehensive of all updates and changes to the April 2014 policy guidelines.
View More Venture Capital Resources

-State Capital Access Programs

Analysis of Updated SSBCI Guidelines
CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. CDFA along with representatives from Treasury discussed key provisions in the updated guidance and fielded questions from attendees.
SSBCI Programs Fact Sheet - November 2021
This November 2021 Fact Sheet from the U.S. Department of the Treasury discusses the five types of SSBCI programs. The programs available under SSBCI are 1) Venture Capital Programs, 2) Loan Participation Programs, 3) Loan Guarantee Programs, 4) Collateral Support Programs, and 5) Capital Access Programs (CAPs).
CDFA's Analysis of Capital Program Policy Guidelines for the State Small Business Credit Initiative
CDFA’s analysis of the November 2021 SSBCI Capital Program Policy Guidelines is meant to provide a high-level overview of key provisions and is not comprehensive of all updates and changes to the April 2014 policy guidelines.
SSBCI General Info Fact Sheet (2021)
The American Rescue Plan Act of 2021 (ARPA) reauthorizes and amends the State Small Business Credit Initiative (SSBCI) Program. ARPA provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to help address the economic fallout of the pandemic and lay the foundation for a strong and equitable recovery by providing direct support to jurisdictions for programs that increase access to credit for small businesses.
Localizing the State Small Business Credit InitiativeMembers only Login
This white paper, authored by three researchers at Drexel University's Nowak Metro Finance Lab, argues that to drive a recovery that expands opportunity and innovation, local leaders would be well put to think about ways they can maximize SSBCI usage. While “local” may not be in the program’s title, its success will ultimately hinge on the hard-won efforts and institutional capacity of local leaders.
View more State Capital Access Program Resources

-Loan Guarantees

Analysis of Updated SSBCI Guidelines
CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. CDFA along with representatives from Treasury discussed key provisions in the updated guidance and fielded questions from attendees.
SSBCI Implementation Guidance Highlight Summary and Reader’s Guide - gener8tor
Gener8tor produced this summary/reading guide of the SSBCI guidance that the U.S. Department of the Treasury released on November 10, 2021.
SSBCI Programs Fact Sheet - November 2021
This November 2021 Fact Sheet from the U.S. Department of the Treasury discusses the five types of SSBCI programs. The programs available under SSBCI are 1) Venture Capital Programs, 2) Loan Participation Programs, 3) Loan Guarantee Programs, 4) Collateral Support Programs, and 5) Capital Access Programs (CAPs).
CDFA's Analysis of Capital Program Policy Guidelines for the State Small Business Credit Initiative
CDFA’s analysis of the November 2021 SSBCI Capital Program Policy Guidelines is meant to provide a high-level overview of key provisions and is not comprehensive of all updates and changes to the April 2014 policy guidelines.
SSBCI General Info Fact Sheet (2021)
The American Rescue Plan Act of 2021 (ARPA) reauthorizes and amends the State Small Business Credit Initiative (SSBCI) Program. ARPA provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to help address the economic fallout of the pandemic and lay the foundation for a strong and equitable recovery by providing direct support to jurisdictions for programs that increase access to credit for small businesses.
View more Loan Guarantee Resources

-Microenterprise & Microloans

SSBCI Implementation Guidance Highlight Summary and Reader’s Guide - gener8tor
Gener8tor produced this summary/reading guide of the SSBCI guidance that the U.S. Department of the Treasury released on November 10, 2021.
Incentives for Entrepreneurial FirmsMembers only Login
Many economic development organizations (EDOs) have embraced the mission to support entrepreneurial firms in their communities. EDOs engage in their entrepreneurial ecosystems, in part, by providing resources, sometimes in the form of business incentives. The purpose of this report is to provide practitioners and policymakers with insights regarding the use of these incentives and guidance for offering incentives to entrepreneurial firms.
Entrepreneur-Led Economic Development: A New Strategy for Generating Local Growth and ProductivityMembers only Login
This report outlines a comprehensive approach, which is called “entrepreneur-led economic development”. The goal is to create feedback loops between entrepreneurial leaders and other local decision-makers and to cultivate networks that connect successful entrepreneurial leaders with future growth-oriented founders who can use their guidance to grow.
One Year into the Pandemic: New Evidence on How Small Businesses are Faring
The Urban Institute hosted this discussion about how small businesses are faring one year after the start of widespread economic shutdowns due to the pandemic. The webinar explored the disconnect between the fall in business activity and revenues, and generally positive small business credit and debt patterns. It also discussed what roles governments and philanthropic entities should play, including what work is needed to ensure businesses historically excluded from access to capital can have a prosperous future.
View more Microenterprise & Microloan Resources

-Programs Map

Search the map below for small business finance programs by state. This specialized search is part of CDFA's State Financing Program Directory, the only online resource cataloging the development finance programs offered by state governments. Click on a state to see a sample of state small business finance programs available. Login with a CDFA Member account at the top of the page to view full results.

-Case Studies

How Tulsa Remote Is Harnessing the Remote Work Revolution to Spur Local Economic Growth
Tulsa Remote, one of the nation’s first and largest remote worker relocation initiatives, has brought more than 1,200 remote workers to the city since 2018 by offering a $10,000 grant and additional support services to eligible workers who move to Tulsa to live and work remotely from there for at least one year.
How Innovative CDFIs Fund Equitable Food Oriented Development
This report describes how three CDFIs drive economic growth in low-income and historically marginalized communities through a model defined by the EFOD Collaborative as Equitable Food Oriented Development (EFOD). EFOD is a development approach that supports locally owned food-based economies. The report details systemic financial barriers that business owners and aspiring entrepreneurs face in marginalized communities.
Community Investment Explorer Tool 2.0Members only Login
Developed by the Federal Reserve Bank of St. Louis, the newly enhanced Community Investment Explorer (CIE) 2.0 includes over 73 million transactions totaling over $3.2 trillion in community and economic development capital from 2012 to 2020. This interactive tool allows users to find out where capital is going, how equitably is it being distributed, and for what purpose is it serving.
Localizing the State Small Business Credit InitiativeMembers only Login
This white paper, authored by three researchers at Drexel University's Nowak Metro Finance Lab, argues that to drive a recovery that expands opportunity and innovation, local leaders would be well put to think about ways they can maximize SSBCI usage. While “local” may not be in the program’s title, its success will ultimately hinge on the hard-won efforts and institutional capacity of local leaders.
Seeding Climate Resilience Through Equitable InvestmentMembers only Login
In this publication, the Center for Community Investment uses six case studies of successful climate resilience investments to surface a set of common strategies that take aim at the systems underlying the inequitable distribution of risk. Together, these case studies point to the urgency of acting quickly, strategically, and creatively to design and finance equitable climate resilience before disaster strikes—again.
View More Case Studies

-Headlines

-Publications

Innovation Finance Reference Guide
The Innovation Finance Reference Guide explores the growing seed, venture capital and angel investment industry. Written by Robert Heard of Cimarron Capital Partners and Jim Troxel of Development Capital Networks, this guide gives development finance agencies a roadmap for building an innovation finance initiative that supports entrepreneurship, business investment, job creation, and 21st century technology development.
Practitioner's Guide to Economic Development Finance
The Practitioner's Guide to Economic Development Finance 2nd Edition is the only comprehensive resource dedicated to building and utilizing the development finance toolbox. The Practitioner's Guide provides the insight and practical information needed to critically understand how economic development is financed and the tools, strategies and techniques used to build strong communities. From bonds, tax increment finance and special districts to tax credits, seed & venture capital, revolving loan funds and much more, this Guide outlines the financing tools required for succeeding in today's competitive economic development climate.
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency (Handbook) serves as a companion to the Practitioner’s Guide to help illuminate the structures of development finance agencies (DFAs), essential conduits to access development finance tools. The Handbook provides an overview of DFAs and their myriad roles in various development efforts. Included in this discussion is a comprehensive look at over a dozen high-performing DFAs throughout the country. The Handbook is designed to be a starting point for local leaders to engage in the creation or acceleration of a DFA to build and utilize the development finance toolbox.
View More Publications

-Training Courses

Fundamentals of Economic Development Finance Course
January 26-27, 2022
Daily: 12:00 - 5:00 PM Eastern
CDFA's Fundamentals of Economic Development Finance Course is the foundation for all of CDFA’s educational offerings. This course helps attendees understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.
Register
View All Courses

-Upcoming Events

Fundamentals of Economic Development Finance Course
January 26-27, 2022
Daily: 12:00 - 5:00 PM Eastern
CDFA's Fundamentals of Economic Development Finance Course is the foundation for all of CDFA’s educational offerings. This course helps attendees understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.
Register
View more Upcoming Events

-Webcasts

Analysis of Updated SSBCI Guidelines
CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. CDFA along with representatives from Treasury discussed key provisions in the updated guidance and fielded questions from attendees.
CDFA // BNY Mellon Development Finance Webcast Series: When it Comes to Financing Smart Cities, What Counts as Smart?
The concept of Smart Cities is no longer brand new, yet most communities are still working to understand what kinds of smart infrastructure they want and need at the local level - and how to pay for it. This installment of the CDFA // BNY Mellon Development Finance Webcast Series discussed what types of smart infrastructure projects are happening around the country and how these efforts are being financed.
CDFA Food Systems Finance Webinar Series: Debunking Risk in Food System Finance
In this installment of the CDFA Food Systems Finance Webinar Series, we broke down the real and perceived risks of lending and discussed a variety of affordable financing solutions that are being employed by development finance agencies to invest in local food-related businesses and projects.
CDFA // BNY Mellon Development Finance Webcast Series: Unlocking Capital for BIPOC-owned BusinessesMembers only Login
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we will be discussing creative financing approaches to minimize barriers and increase access to capital for minority-owned businesses across the country.
Enhancing Local Workforce Development and Building for the Future
Automation, shifting demographics, COVID-19 and increased telework opportunities are reshaping the workforce landscape amid shifting industry needs. Counties, through local and regional partnerships and workforce development boards, are working with public, private, and nonprofit partners to help train job seekers and connect them with local employers.
View More Webcasts

CDFA National Sponsors

  • Baker Tilly
  • BNY Mellon
  • Bricker & Eckler LLP
  • Brownfield Superfund Advisory, Inc
  • Bryan Cave Leighton Paisner LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd LLC
  • gener8tor
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • SB Friedman Development Advisors
  • Stern Brothers
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Z. The Bond Buyer
Become a Sponsor