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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.
If my company is not based in Wyoming, am I still eligible for funding?
Yes, companies committed to relocating to Wyoming within a year after receiving funding are eligible.
What if my company has operations outside Wyoming?
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.
Is my company still eligible for investment if we have existing investors?
Yes, as long as at least 60% of the equity is owned by residents of Wyoming.
What if I already have a large employee base? Do I still qualify for investment?
Companies with 200 employees or less are eligible for investment.
Will WYVC lead my fundraising round?
No, WYVC will never act as the lead investor in any fundraising rounds.
Can WYVC help me raise capital for my company?
WYVC works with a network of venture capital funds, however WYVC will not commit to making introductions or driving the fundraising round.
Can my company receive investment from WYVC before additional investors?
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.
Will WYVC invest in my company if we have already taken on debt?
Holding debt with your company does not disqualify you from applying for investment.
Will WYVC help with my attorney fees?
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.
What if my company has existed for a long period of time? Do we still qualify for investment?
Age of the company is not a consideration in the application process.
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.
What kind of investment strategy can my fund have to qualify for WYVC Investment?
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.
Can a fund purchase shares of a company on the secondary market with SSBCI dollars?
No, the purchase of any portion of the ownership interest of any owner of the business is not permitted.
What type of fundraising rounds is my fund allowed to invest in utilizing WYVC funds?
Early-stage investments with rounds totalling no more than $5M.
If our fund receives investment, are we limited to only investing in Wyoming companies?
No, however WYVC requires the overwhelming majority, or at least 80% of investments, are made in Wyoming companies.
Does our fund need to be based in Wyoming in order to receive investment?
No, however it is preferred to be in Wyoming or in the same US region.
What qualifies a prospective portfolio company for investment?
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.
If our fund invests in Wyoming companies, will WYVC still be able to invest along-side our fund using WYVC Direct funds?
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.
Is there a limit to the amount of management fees our GP can charge on the committed funds?
Yes, the management fee cannot average more than 1.71% on an annualized basis.
Is our fund limited to what industries or sectors we can invest in?
No, the funds are industry-agnostic.
After receiving investment from WYVC, do we require additional approval on individual investments?
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.
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.
What is a High-growth potential company?
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.
How is Controlling Influence defined?
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.
What are Services to Portfolio Companies?
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.
What defines a Minority individual?
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.
What defines a Minority-owned or controlled business?
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.
What defines a Principal owner?
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.
What defines a Women-owned or controlled business?
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.
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.