Seed financing stimulates local business creation
To effectively deploy capital to spur new business generation, you need to be close to the action. That’s why the Wisconsin Economic Development Corporation (WEDC) created the Capital Catalyst Program—to make seed funds available to organizations and communities dedicated to stimulating entrepreneurship.
How it works
WEDC provides matching grants typically ranging from $50,000 to $500,000 to approved organizations or communities that manage a seed fund to provide capital to high-growth startups and emerging growth companies, or support R&D-to-commercialization efforts. These locally managed funds may provide grants, loans and/or investments in startups and early-stage and innovative small businesses that operate in their service area. Loan repayments and returns on investment may stay within the fund to assist additional companies and create a supportive environment for business creation and development.
Recipients of WEDC Capital Catalyst funds must demonstrate organizational capability and the availability of entrepreneurial support to achieve program goals. Recipients must match at least 1:1 the amount of seed grant funding provided by WEDC. In addition to providing documentation of this financial match, each recipient must also provide WEDC with periodic reports and information on its operations and on the economic impact of the companies provided with funding.
Investment decisions will focus on assistance to companies in industry sectors including but not limited to advanced manufacturing, agriculture or food processing, information systems or software, medical devices, bioscience and energy. Funds may not be used for investments in real estate, retail or hospitality businesses, including restaurants.
Recipients will be required to provide quarterly and annual reports on the number of awards made from the fund, the type and amount of each award, the recipient of each award, the level of employment, and the amount of capital investment leveraged.