Overview

LaunchTN established the $1.71m Impact Fund to invest in Tennessee-based startups with a mission to solve fundamental social, environmental and economic challenges. The Impact Fund will make roughly 20 seed-stage investments over a three year period ranging from $50k to $150k per investment.

The fund will focus on for-profit ventures in the areas of agriculture, healthcare, sustainable living, education, clean energy and financial services. Investments will match private dollars at a 25% rate, thus incentivizing private investors to financially support early-stage, mission-driven Tennessee companies solving real problems facing our state and country today.

Impact Fund Goals

  • Provide Tennessee companies access to early-stage venture capital, in part by attracting and leveraging significant private capital investment
  • Support companies solving social and environmental challenges in industry sectors that are core to Tennessee’s economy
  • Ensure promising early-stage companies have the capital they need to grow their businesses in Tennessee

 

 

Impact Fund Details

  • The Impact Fund financing is a dilutive investment. Accepted investment vehicles are SAFE notes, convertible notes, and equity rounds
  • LaunchTN will not take board seats or set deal terms but will provide ongoing support and access to a variety of resources
  • Companies located anywhere may apply for funding but they must be willing to build the majority of their company in Tennessee
  • LaunchTN will match private investors at 25%, with a maximum check size of $150,000

 
Impact Fund Eligibility Guidelines

  • Companies must meet ‘high-growth’ criteria, defined as:
    • Unique, differentiated product or service
    • Clear, compelling value proposition
    • Scalable product and business model
    • Large target addressable market, ideally greater than $500m
    • Knowledgeable, coachable founding team
    • Exit potential
  • Companies must be for-profit and returns-focused with a core business that solves social or economic challenges in agriculture, healthcare, sustainable living, education, clean energy or financial services
  • Headquarters must be in Tennessee, or the company must be willing to relocate (headquarters defined as having at least 60% of full-time employees performing majority of their work in Tennessee)
  • Must have at least a minimum viable product (idea-stage companies are too early)
  • No more than 20 employees
  • Generating less than $1m in revenue
    • Currently raising a Seed or Series A round that should provide at least 12 months of runway as determined by financial projections
    • Progress the company to clearly defined milestones
  • Have clear use of funds with line items for specific business functions (new hires, marketing, development, etc.)

 
Investment Details

  • $50k to $150k check size
  • Roughly 20 total investments in Fund I
  • SAFE notes, equity, and convertible debt will be considered
  • Impact Fund dollars will be invested on the term sheet negotiated by matched investors

APPLY NOW!


If your company is in the fundraising process and fits the criteria outlined above, the first step is to complete the application.

Direct questions related to the Impact Fund to impact@launchtn.org.

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