West Virginia Venture Capital - West Virginia Capital Company Act

The West Virginia Economic Development Authority (the Authority”) has qualified five (5) 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
20 East Circle Drive
Athens, OH 45701
(740) 597-1470
www.adenaventures.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
1000 Technology Drive
Suite 1000
Fairmont, West Virginia 26554
(304) 333-6769
Fax: (304) 366-2699
gpeduto@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
KB&T Center
107 Capitol St., Suite 300
Charleston, West Virginia 25301
(304) 347-7519
Fax: (304) 347-0072
www.mtncap.com

Novitas Capital 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.

Novitas Capital
1200 Liberty Ridge Drive
Suite 310
Wayne, PA  19087
Phone: (610) 293-4075

Fax: (610) 254-4240
info@novitascapital.com

www.novitascapital.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, Route 97, Suite 200
Glenwood, Md 21738
(301) 854-6711
www.walkerventures.com

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