Equity FAQ’s

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Direct Frequently Asked Questions

How much funding can my company request from the WYVC Direct?

WYVC is focused on investing in Pre-Seed, Seed, and Series A funding rounds to support Wyoming entrepreneurs, adding value to and growing the venture ecosystem. WYVC can invest up to $5M per company, over multiple fundraising rounds as applicable. Funds requested above $2M require additional due diligence and approval. WYVC will only consider up to 50% of the total funds raised in the round.

Yes, companies committed to relocating to Wyoming within a year after receiving funding are eligible.

As long as your company is headquartered in WY, has principal operations in WY, and/or has at least 60% of its employees in WY, you can have operations outside the state and still be eligible.

Yes, as long as at least 60% of the equity is owned by residents of Wyoming.

Companies with 200 employees or less are eligible for investment.

No, WYVC will never act as the lead investor in any fundraising rounds.

WYVC works with a network of venture capital funds, however WYVC will not commit to making introductions or driving the fundraising round.

No, WYVC will not invest more than 100% of the funds already received from other investors in the round. However, depending on the situation, we can draft a letter of intent (LOI) to help secure other investors, including a lead investor.

Holding debt with your company does not disqualify you from applying for investment.

No, terms set for the fundraising round typically dictate the company pays for the attorney costs outside the funds raised. Only on rare occasions will the lead investor accept terms otherwise.

Age of the company is not a consideration in the application process.

Funds Frequently Asked Questions

How much funding can my fund request from the WYVC Fund strategy?

WYVC is focused on investing in Pre-Seed, Seed, and Series A funding rounds to support Wyoming entrepreneurs, adding value to and growing the venture ecosystem. WYVC can contribute up to $5M per fund. Funds requested above $2M require additional due diligence and approval. WYVC targets 20% of a fund and will only consider up to 50% of the total fund.

The WYVC Fund strategy is purposed for investing in early-stage rounds in the state of Wyoming. Qualified investments are in start-up or high growth companies planning to provide a return in 5-7 years, on average.

No, the purchase of any portion of the ownership interest of any owner of the business is not permitted.

Early-stage investments with rounds totalling no more than $5M.

No, however WYVC requires the overwhelming majority, or at least 80% of investments, are made in Wyoming companies.

No, however it is preferred to be in Wyoming or in the same US region.

As long as the company is headquartered in WY, has principal operations in WY, has at least 60% of its employees in WY, or is committed to relocating to Wyoming for at least 1 year after the investment closes it qualifies.

Yes, as long as WYVC funds represented, either by the invested fund(s) or WYVC Direct investment, totals 50% or less of the total round size.

Yes, the management fee cannot average more than 1.71% on an annualized basis.

No, the funds are industry-agnostic.

No, as long as the company qualifies with the company profile, round size, and state-based criteria, investment decisions are made by the fund management operating agreements and/or outlined strategy.

General FAQ's

What is the State Small Business Credit Initiative (SSBCI)

The American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010 and was successful in increasing access to capital for small businesses and entrepreneurs. The new SSBCI builds on this model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic. SSBCI funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, amplifying the effects of this funding and providing small business owners with the resources they need to sustainably grow and thrive.

This is a company with a globally differentiated concept, scalable product and business model, defined value proposition, large target addressable market, and potential for exit via initial public offering or acquisition.

Having the power to control, manage, or direct the business. A person is presumed to have a controlling influence over a business if the person is a senior executive officer or senior manager of the business (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer), or any other individual who regularly performs similar functions.

This could be founder summits, mentorship, introductions to additional funding sources or experts in the industry, but it needs to be quantifiable benefits to the founding team.

A natural person who identifies as American Indian or Alaska Native; Asian American; Black or African American; Native Hawaiian or Other Pacific Islander; Hispanic or Latino/a; or one or more than one of these groups.

A business that: (1) if privately owned, 51 percent or more is owned by minority individuals; (2) if publicly owned, 51 percent or more of the stock is owned by minority individuals; (3) in the case of a mutual institution, a majority of the board of directors, account holders, and the community which the institution services is predominantly comprised of minority individuals; or (4) one or more minority individuals have the power to exercise a controlling influence over the business.

A natural person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity of the business. If a trust owns, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, 25 percent or more of the equity interests of the business, the trustee is a principal owner.

A business that: (1) if privately owned, 51 percent or more is owned by females; (2) if publicly owned, 51 percent or more of the stock is owned by females; (3) in the case of a mutual institution, a majority of the board of directors, account holders, and the community which the institution services is predominantly comprised of females; or (4) one or more individuals who are females have the power to exercise a controlling influence over the business.

Glossary

Co-investor – An individual or fund investing alongside another individual or fund in a company. 

Direct Strategy – The WYVC investment strategy investing directly in Wyoming companies. 

Equity – Ownership in a company. 

Expended – SSBCI funds that have been invested in specific small businesses pursuant to a venture capital investment . 

Fund Strategy – The WYVC investment strategy investing in Wyoming-focused startup investment funds. 

GP – General Partner as it relates to the LLC and/or partnership agreement. 

Investor – Any private venture capital, seed-stage, mezzanine, or angel fund or related special purpose vehicle or entity providing funds for an expected return. 

Investee – The small business that is the end recipient of SSBCI funds, either directly from WYVC or indirectly through a venture capital fund. 

LP – Limited Partner as it relates to a fund. 

Obligated – SSBCI funds that have been committed, pledged, or otherwise promised, in writing, as part of a venture capital investment transaction 

Pari Passu – When all classes of LPs, or preferred stock in investment terms, have equivalent rights. 

Sidecar – An investment strategy in which one investor allows a second investor to control where and how to invest the capital. 

Special Purpose Vehicles (SPVs) – Legal entities that are created for one specific purpose. In startup investments, SPVs are used to pool money from a group of investors to make a single investment. 

SSBCI – The State Small Business Credit Initiative reauthorized and funded by The American Rescue Plan Act on March 11, 2021. 

Wyoming-based companies – Companies which either are headquartered in Wyoming, have at least 60% of employees in Wyoming, have at least 60% of equity owners living in Wyoming, or are committed to fulfilling one of the three criteria within one year of receiving investment. 

Wyoming Venture Capital (WYVC) – The state program managed by the Wyoming Business Council utilizing funds granted by the federal SSBCI program.