InvestTN #Beta

Powered by Launch Tennessee, InvestTN makes equity investments into Tennessee-located startups (Pre-Seed, Seed, Series A and B) and venture capital funds.

Startups: Get Started

InvestTN is made possible by Fund Tennessee – $117 million in federal funding for Tennessee as part of the U.S. Department of the Treasury’s SSBCI (State Small Business & Credit Initiative) program. Whether your business seeks equity investments, lending or technical assistance, Fund Tennessee is here to provide equitable access to capital so your business can continue to succeed in The Volunteer State. Public Notice: This project is funded under a grant contract with the State of Tennessee.

InvestTN will launch a dedicated website in June detailing our unique approach to equity investment in Tennessee. In the meantime, this page represents our InvestTN #Beta launch. If you are a startup CEO or venture capital fund manager, we invite you to apply for funding.

InvestTN for Startups

InvestTN’s Regional Seed Fund is a $28M Tennessee-focused initiative for Pre-Seed and Seed stage startups. Up to $4 million is earmarked for 7 Regional Entrepreneurial Centers across the state serving all 95 counties. Investments range from $25,000 to $250,000, with a target round size of $100,000 to $750,000.

InvestTN’s Technology Fund will invest $30M into Tennessee-located companies from industries driving the state’s growing ecosystem. Investments range from $250K to $3M, with a target round size of $1.5M to $8M, across Seed, Series A, and Series B stages. InvestTN’s Technology Fund has the ability to serve as the lead investor, though this is not a requirement.

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InvestTN for Venture Capital Funds

InvestTN’s Multi-Fund invests in Tennessee-located and focused venture capital funds. Multi-Fund capital commitments serve as anchor investments in the first closing of a new fund, ranging in size from $1M to $3M for venture funds targeting a fund size of $10 million to $30 million.

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FAQ

What is SSBCI?

The American Rescue Plan Act reauthorized and expanded the State Small Business Credit Initiative (SSBCI) to provide $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities as the country emerges from the pandemic. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. To learn more about the program, including comprehensive detail on the guidelines and requirements, visit the SSBCI website. InvestTN is the name for Tennessee’s SSBCI equity program.

How is 'Tennessee-located' defined?

A business that is registered to do business in Tennessee with the Tennessee Secretary of State and (1) 51% of its employees are domiciled in Tennessee, or (2) is a Headquarters Facility as defined by T.C.A. § 67-6-224, or (3) a majority of its senior management are domiciled in Tennessee.

What is the investment process for Startups?

We ask that you first complete our Intake Form. Based on what you share, our investment team will be in touch to facilitate the Regional Seed Fund or Technology Fund application process. The process from start to finish can be completed in a matter of weeks or months depending on the completeness of your application, the volume of applications currently being processed by our team, and other factors.

What is the investment process for Venture Capital Funds?

Submit a completed application using the Apply Now button. The process from start to finish is expected to take several months, at minimum, as we seek to meet all potentially eligible venture capital funds in Tennessee as part of our market assessment.

How are investment decisions made?

For Startups, investments will be made into companies that receive a majority vote from the InvestTN Investment Committee (InvestTN IC). For Venture Capital Funds, capital commitments will be made into funds that receive unanimous approval from the InvestTN IC. Committee meetings are generally held weekly on Tuesdays.

What if I am declined?

You will be notified by email, including any immediately available feedback, however due to the volume of applications we are not able to offer individual feedback calls or meetings. For eligible companies and venture capital funds, you will have the opportunity to re-apply for funding at a later date. Declined applicants may seek technical assistance through AssistTN (when available).

Am I required to raise matching capital to secure InvestTN equity investment?

Yes. The 1:1 private capital match requirement is considered on a per transaction basis, and private investment must be made on the same terms as the InvestTN Fund. Debt and grant financing will not meet the requirements of the private match.

How is a Venture Capital Fund defined?

A venture capital fund is an entity that meets the SEC's definition of venture capital fund as displayed here.

Which certifications will be required prior to receiving funding?

All approved investments will enter legal diligence, including required SSBCI program certification. Sample certifications are available here, including Use of Proceeds and Conflict of Interest, Sex Offender, SEDI-Owned Businesses (as applicable).

What information will be subject to ongoing review as an InvestTN portfolio company or fund?

All investees are required to make available to the Treasury Inspector General and the Government Accountability Office all books and records related to the use of the SSBCI funds, subject to applicable privacy laws, including but not limited to 12 U.S.C. § 3401 et seq., including detailed loan and investment records, as applicable.

To learn more about our recently announced program, read LaunchTN’s press release:
LaunchTN leadership hitting the road to share information on new fund