Venture Debt Program

The M7 Venture Debt Investment Program provides debt financing in collaboration with equity investment from accredited investors. Venture Debt funding is intended to increase the ability of emerging growth companies to access capital that will increase liquidity as well as their ability to reach cash flow breakeven and beyond. Venture Debt provides non-dilutive funding in partnership with equity investors.
 
Eligible businesses must:

  • Create new, high quality jobs for the M7 region.
  • Show a promising revenue stream, but may not be cash flow positive.
  • Have commitments for venture/angel equity investment that are pending. Second or later round investments are eligible.
  • Apply for Act 255 Tax Credits, as applicable.
  • Represent an emerging growth market with a sustainable competitive advantage.
  • Be located in one of the counties of Milwaukee, Racine, Kenosha, Waukesha, Walworth, Washington or Ozaukee (the Milwaukee 7 region).

Benefit to Company:
Availability of flexible and predictable funding, without company dilution or loss of control, preserves equity capital for use in the business, and stimulates the growth of the company.

Maximum Loan:
$300,000

Terms of Loan:
Interest rate, term and collateral will be decided on a project by project basis.

Prepayment:
No prepayment penalty.

Warrants:
MEDC may take warrants.

Fees:
Applicant will be responsible for attorney loan closing costs and other out of pocket expense to MEDC.

Application Requirements:

  • Business plan.
  • M7 Venture Debt application.
  • Supporting documents.

Loan Approval:
The loan request will be approved by an investment committee with representation from throughout the seven county region.


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