Seed-stage Fund Launched, Will Offer Capital to Startups
by February 4, 2002 12:00 am 78 views
A $2 million-$5 million investment fund for developing technology companies was launched Jan. 24 in Fayetteville.
The Alpha Fund, created by local investment bankers David Lewis and John Nock, will make investments of $50,000-$500,000 in seed-stage technology firms. The fund will be directed by a five-member committee of local business leaders.
The fund will help commercialize technologies developed at the University of Arkansas, other universities, federal laboratories and private companies.
“There’s a ton of technology out there that has to get going at a very embryonic stage, but that’s where capital is really missing in the marketplace,” Lewis said. “Seed-stage technologists need to bring some money to bear on their projects, and that is what this is about.”
Lewis and Nock are soliciting investments for The Alpha Fund. The minimum investment required is $25,000 by an individual entity.
Traditional venture capital funds seek companies with a product that’s very close to being market ready or that’s already generating sales. But The Alpha Fund will provide working capital to help get startups with excellent commercial potential to the point where they can be attractive to venture capitalists.