Equity Programs
Capital co-investments to support your Kansas company.
The State of Kansas was allocated $69M in U.S. Treasury State Small Business Credit Initiative (SSBCI 2.0) dollars. The programs created the $27M GROWKS Equity Fund.
As the state’s lead economic development agency, the Kansas Department of Commerce strives to empower individuals, businesses and communities to achieve prosperity in Kansas. Kansas Commerce accomplishes its mission by developing relationships with corporations, site location consultants and stakeholders in Kansas and nationwide. Our strong partnerships allow us to help create an environment for existing Kansas businesses to grow and foster an innovative competitive landscape for new businesses.
Angel Capital Support Program
Our Angel Capital Support Program provides co-investment dollars alongside other investors and partners for Kansas-based businesses.
Initial investment: $50,000-$250,000 (typical)
Follow-on investment: $50,000-$150,000 (typical)
Frequently Asked Questions (FAQ)
Who can apply for a GrowKS equity investment?
For-profit, Kansas-based companies looking for capital co-investment and raising a funding round of less than $20M.
What are the requirements to qualify as a Kansas-based company?
- Entity organized and/or incorporated in the State of Kansas and registered with the Kansas Secretary of State to do business in the State.
- If the entity is a Delaware corporation, it must be registered with the Kansas Secretary of State as a Foreign Entity doing business in Kansas.
- The business’s primary location must be in Kansas.
What does a GrowKS equity project look like?
A company that is well suited for venture funding and is seeking funds for investment in their business . These companies typically have a scalable business model with the potential to generate strong capital returns. The funding round must have co-investors participating alongside the GROWKS investment. The deal structure should be on market terms and the GROWKS investment would be pari passu with the co-investors.
What does a GrowKS equity project NOT look like?
A company not seeking funding from co-investors and not interested in taking on a business-investor relationship. Companies participating in speculative activities or earn more than half of their revenue from lending activities, pyramid sales, gaming/gambling activities, or any activity prohibited by federal law are not eligible. Any conflicts of interest with the business owner, partners, or family members would disqualify the company from GROWKS funding.
Am I required to have other co-investors participating in the funding round to secure GROWKS equity investment?
Yes, a GROWKS equity investment requires co-investment pari passu with the GROWKS program.
What types of funding qualify as co-investment funds?
Qualifying funds include: new capital investment from angel investors, an angel investment fund, a venture capital fund, personal funds, or friends and family. Funding from the following sources would NOT be considered qualifying co-investment funds; local or regional revolving loan funds (RLFs), Network Kansas loan funds, public sources of financing, or grants.
What are the reporting requirements?
Businesses that receive GROWKS investment funds are required to, at minimum, provide GROWKS with quarterly and annual updates and business data by stated deadlines. The data required for reporting will be specified by GROWKS and U.S. Department of the Treasury guidelines at the time of investment.
How do businesses begin the application process?
Businesses will be connected to the eGrowth Ventures team to discuss the application process and determine eligibility. The team then conducts a due diligence review for qualifying businesses who apply for investment. Contact information for the equity team is listed below.
How often will applications be accepted and/or reviewed?
Applications for funding are accepted on an on-going basis. Applications are reviewed by the eGrowth Ventures team over a 30- to 45-day period.
