High Growth Companies
High growth companies often operate at a loss for several years, but have the ability to attract significant investment capital, which may eventually provide a return on investment.” They are companies that:
- Have a unique/breakthrough idea. The technology driving the company is proprietary, patentable, or derived from a “secret sauce” in one form or another. There are significant barriers to entry for competition.
- The company exists within a large addressable market, generally in excess of $1 billion dollars.
- The product is scalable. The business model is designed to handle significant growth. Additional resource inputs often result in exponential outputs with linear costs.
- Founders are knowledgeable and coachable. Running a high growth company requires a unique skill set, understanding what you know, and what you do not know is critical for success.
- The terms and valuation are reasonable. This is not a grant program. Invest Nebraska takes an equity or convertible debt position in high growth companies and expects a return on its investment. Invest Nebraska actively negotiates deals and will lead/follow/syndicate deals.
- The company has exit potential. Entrepreneurs must provide a reasonable avenue for investors to get their investment back out of the company. This is most often in the form of an acquisition, but can also be accomplished through an IPO, redemption rights, or cash distributions to shareholders.
Invest Nebraska recognizes the diversity of Nebraska’s economy and strives to balance its portfolio with investments from across Nebraska. We actively seek out women and minority entrepreneurs.
Nebraska Seed Investment Fund
High growth companies in Nebraska are statutorily eligible for the Nebraska Seed Fund when:
- The company has fewer than 500 employees;
- The company is engaged in non-retail primary industries;
- A business plan and proof-of-concept demonstration is provided with the application; and
- The investment is matched 100% from a non-state government source.
- Additional guidelines may be found here
Applicants must apply online here.
Invest Nebraska partners with the State of Nebraska’s Department of Economic Development to provide these funds and receives an appropriation under the Business Innovation Act that provides the resources to fund companies.
Click Here for information on what to expect after you apply.
Nebraska Angel Sidecar Fund
The Angel Sidecar Fund functions in a similar manner to the Nebraska Seed Investment Fund. However, the funding match must be an angel investor or angel fund located in Nebraska. An angel is an accredited investor. Accredited investors have a net worth in excess of $1 million or earn individual income exceeding $200,000/year or $300,000 jointly with their spouse.
The angel investor may be an individual or several individuals. Often, a company receiving investment through the Angel Sidecar Fund receives their match from the Nebraska Angels.