West Virginia Venture Capital - West Virginia Capital Company Act
The West Virginia Economic Development Authority (the Authority”) has qualified seven (7) professionally managed venture capital funds focused upon entrepreneurship in West Virginia. Executive and legislative actions in 2002 provided $25 Million dollars, in the form of direct investment, to stimulate the facility for venture capital financing in West Virginia.
This effort, in fact, has leveraged potential capacity in excess of $575 Million dollars among qualifying entities such as Small Business Investment Companies (SBIC’s) which draw upon matching Federal dollars. State investments have been placed with SBIC’s, traditional venture funds and pre-seed entities in order to maximize the impact of the program and broaden the scope of the State’s initiative.
In addition, accredited private institutions and individuals are also encouraged to make investment in Qualified WV Venture Capital Companies pursuant to Chapter 5E, Articles 1 and 2 (the “VC Programs”) of the West Virginia Code. Tax credits are available annually, for up to 50% of an investment, for institutions and individuals investing in WVEDA-qualified venture capital entities, which will in turn make debt and equity financing available to entrepreneurs principally located in the state. Additional venture capital companies may be qualified periodically, as appropriate.
Qualified West Virginia Venture Capital Companies must maintain staffed full-time offices in the state in addition to investing funds obtained through the VC Programs in West Virginia businesses pursuant to specific Rules and Regulations promulgated by the Authority.
A listing of currently qualified West Virginia Venture Capital Companies follows:
Adena Ventures formed to provide equity and operational assistance to qualifying businesses in central Appalachia. The company's mission is to generate market-rate returns for investors while promoting shared and sustainable economic development throughout its target region.
Adena invests between $200,000 and $2 million in companies with strong management teams, high growth potential and defensible market positions. The U.S. Small Business Administration designated Adena Ventures the first New Markets Venture Capital company in the country and is providing the fund with significant financial leverage, which more than doubles the money available for investment in central Appalachia.
Adena Ventures
Lynn Gellerman
2300 MacCorkle Ave., SE
Charleston, West Virginia 25304
(304-340-3736)
www.adenaventures.com
Anthem Capital seeks opportunities in IT/telecom and healthcare/life sciences industries. IT investments are most frequently made in enterprise software or network management software companies. Medical investments fall into three categories: medical devices, biotechnology or healthcare. Anthem invests in early to expansion stage opportunities. Anthem seeks to invest between $2 million and $4 million in a company from the first private equity round through exit.
Anthem Capital
Ed Spiva
1000 Technology Drive
Suite 1000
Fairmont, WV 26554
(304) 319-0582
www.anthemcapital.com
I-Networks, Inc., makes private equity and venture capital investments both directly and through its managed funds, with the history and flexibility of working with life sciences and technology companies as well as traditional industries. We are especially interested in companies, either headquartered in or with substantial operations in West Virginia, that are poised for growth and willing to work closely with our team to achieve sustainable success. Initial investments sourced from I-Networks typically range from $250,000 to $4 million, except that the I-Networks Community Development Capital Company, our community development venture capital fund, is limited to a total investment in one company of $1 million.
I-Networks, Inc.
Charles A. Schliebs
The Times Building, Third floor
336 Fourth Ave.
Pittsburgh, PA 15222
(412) 281-4277
charlie@iNetworksLLC.com
www.iNetworksLLC.com
INNOVA, an initiative of the West Virginia High Technology Consortium Foundation, is a statewide commercialization group focused exclusively on West Virginia innovators. INNOVA’s mission is to create real wealth for West Virginia by assisting entrepreneurs in obtaining the business development assistance and capital necessary to successfully launch new products into the commercial marketplace.
INNOVA
Greg Clutter
1000 Technology Drive
Suite 1000
Fairmont, West Virginia 26554
(304) 366-2577
Fax: (304) 366-2699
gwclutter@wvhtf.org
www.INNOVAWV.org
www.wvhtf.org
Mountaineer Capital LP provides venture capital to promising new and existing businesses in West Virginia and surrounding states. Mountaineer Capital is licensed as a Small Business Investment Company (SBIC) by the U.S. Small Business Administration. Initial investments can range from $250,000 to $1 million.
Mountaineer Capital LP
Patrick A. Bond
J. Rudy Henley
KB&T Center
107 Capitol St., Suite 300
Charleston, West Virginia 25301
(304) 347-7525
Fax: (304) 347-0072
pabond@mtncap.com
jrhenley@mtncap.com
www.mountaineercapital.com
PA Early Stage is a family of venture capital funds that makes investments in seed, start-up and early stage information technology and life sciences companies. The firm invests in early-stage companies characterized by strong intellectual capital, proven leadership, breakthrough concepts, and unique positioning. Their initial investments typically range from $100,000 up to $2.0 million in a first round financing.
PA Early Stage
Scott D. Nissenbaum
The United Center, Suite 390
1085 Van Voorhis Road
Morgantown, WV 26507
(304) 599-1032
snissenbaum@paearlystage.com
www.paearlystage.com/
The Progress Fund is a community development financial institution whose mission is to create economic opportunity by lending needed capital and providing technical assistance to small businesses in southwestern and central Pennsylvania and West Virginia. With the decline in industrial businesses, one of the few growing sectors in the rural economy is the tourism industry. The Progress Fund provides opportunities for new and existing entrepreneurs, creates jobs with above average wages and grows the regional economy through its support of the tourism industry and other sectors. They have loaned more than $7 million to more than 116 enterprises, creating or preserving more than 750 jobs
The Progress Fund
David Kahley
105 Zee Plaza
Hollidaysburg, PA 16648
(814) 696-9569
info@progressfund.org
www.progressfund.org
Select Capital is a private equity investment firm focused on the healthcare industry. Areas of interest include healthcare services, healthcare information technology, and medical devices and equipment. Select Capital Ventures operates as a Small Business Investment Company (SBIC) licensed by the Small Business Administrations (SBA).
Select Capital
Debra Hellyer
4718 Old Gettysburg Road, Suite 405
Mechanicsburg, PA 17055
(717) 972-1316
businessplans@selectcapitalventures.com
www.selectcapitalventures.com
Toucan Capital specializes in seed and early stage investments in novel, emerging technologies. They are interested in working with inventors, researchers, scientists, and entrepreneurs at the very beginning to commercialize an invention or technology. They look for emerging technologies with broad potential to create multiple products. Toucan typically invests in a company's first institutional financing, usually acting as the lead investor.
Toucan Capital
Phillip Singerman
150 East Burr Boulevard
Kearneysville, WV 25430
(304) 728-3051 Ext. 240
frontdesk@toucancapital.com
toucancapital.com
Walker Ventures is based in Glenwood, Maryland and focuses on startup and early stage companies in the high-tech industry. The firm's West Virginia operation based in Shepherdstown focuses on the entire state. Prior investments included Ultraprise Corp. and Butterfly.net, Inc., two companies in West Virginia's Eastern Panhandle.
Walker Ventures
Gina Dubbe
3060 Washington Road, Rout 97, Suite 200
Glenwood, Md 21738
www.walkerventures.com