Venture Capital Programs

ADFA's Venture Capital Programs increase the availability of equity and near equity capital for enterprises in Arkansas that are emerging, expanding, relocating, and restructuring.

INCREASING ACCESS TO VENTURE CAPITAL FOR ARKANSAS BUSINESSES

AIF invests in proven, professionally managed private equity and venture capital funds that commit to include Arkansas in aggressive and visible deal prospecting.

It is AIF's intention to catalyze the formation of risk capital from early stage seed capital through later stage capital and special situations. Over time, AIF is committing approximately $70 million to private equity and venture capital funds that provide early stage capital, traditional venture capital, later stage and expansion capital, and special situations capital.

AIF is a “fund of funds” venture capital investment program designed to produce a surplus, the lion’s share of which goes to the state. AIF is authorized by the Arkansas Development Finance Authority (ADFA). The equity interest in AIF is held by the Arkansas Venture Capital Investment Trust.

The Arkansas Institutional Fund (AIF) works to build the state economy by increasing access to venture capital for innovative Arkansas businesses.

Established in 2005, the AIF program is expected to result in over $420 million of equity, near equity, and debt capital for Arkansas businesses through its first and second rounds of investment.


AIF PORTFOLIO

Technology Operators Fund II seeks opportunities to work with early-stage and growth stage Arkansas companies in two sectors: software-as-a-service for small businesses and cybersecurity. Typical initial investments are $2 million to $3 million.

Noro-Moseley focuses on high-growth software business and on healthcare services and information technology companies. Particular areas of interest for investing include: security and financial technology, video delivery, cloud migration and services, ecommerce platforms, mobility, consumer-oriented healthcare platforms, revenue cycle management, wellness and prevention, and regulatory compliance management software.

Fulcrum Growth Fund II is actively seeking opportunities to invest in rapidly growing Arkansas companies with a minimum of $3 million in revenue. Fulcrum typically invests $1 to $5 million initially, and up to $10 million in any one company. They consider investments in a wide range of industries with an emphasis on information technology, healthcare, greentech and technology enabled operating companies.

Petra Growth Fund II makes commitments of up to $10 million as junior capital per company. The firm focuses on companies with at least $10 million in revenue and $1 million in EBITDA at the time of investment and finances expansion, acquisitions, buyouts or recapitalization for high growth and high margin companies. Target industries include healthcare, software, business outsourcing, information services and media.

The Fund for Arkansas’ Future (FAF) II focuses on investments in seed and early stage companies throughout Arkansas. Investments are often in technology or biotechnology-related companies, though FAF II is not limited to any particular industry.

Meritus Ventures, LP is a $36.4 million venture capital fund formed to make equity investments in private, expansion-stage companies in predominantly rural areas.

Memphis Biomed Ventures II, L.P. invests in the healthcare industry, including medical device and biotechnology companies with a particular interest in companies developing product solutions for musculoskeletal disease. The fund invests at various stages of development from seed and early stage financings to later-stage deals.

Prolog II seeks a balanced exposure to four key life sciences sectors: biopharmaceuticals, medical technology, agriculture and nutrition, and healthcare information technology. Key selection criteria include novel functionality, technical validity, the potential for strong intellectual property positions and large accessible markets.

SSM Venture Partners invests in rapidly growing, privately-held companies most often in the business, healthcare, and consumer services industries. SSM is one of the largest and most experienced growth equity firms in the Southeast, having invested in more than 60 companies across five growth equity funds.

Contact Our Team

BRAD HENRY

Vice President
Development Finance

5016825901

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Venture Capital Partners