Cultivation Capital plans to invest an extra $1 million into the top graduating startups of local accelerator Capital Innovators over the course of the next year.
Cultivation Capital will designate up to $500,000 for the most promising companies in each of the Fall 2012 and Spring 2013 classes of Capital Innovators startup companies. This would be a follow-on investment to the $50,000 each company receives from Capital Innovators. Both firms working together expect this to boost graduating companies that are ready to take their products and services to a wider audience.
Graduates will receive full consideration for investment with a round of due diligence performed by Cultivation Capital on every company.
The investment goal follows a strategic investment made by Cultivation Capital into Capital Innovators in April. The two firms are excited to team up to support startup technology firms.
“What better incentive is there than $1 million dollars?” asked Judy Sindecuse, CEO and Managing Partner of Capital Innovators. “This is an exciting investment in local startups that ultimately will pay major dividends across the region.”
Cultivation Capital’s General Partners include Brian Matthews, Peter Esparrago, Jim McKelvey, Cliff Holekamp and Rick Holton, Jr. The team of serial entrepreneurs is excited to advise startup founders who are ready to grow their companies.
“The next generation of great founders will have our support,” said Brian Matthews. “Capital is the fuel for startups, but our team can show them how to drive and win.”
Capital Innovators, which offers $50,000 in seed funding and a 12-week accelerator program to five companies twice per year has graduated two groups of firms who are working to become successful businesses. The 12-week term accelerates the growth of the companies and prepares them for presentations to audiences of angel investors and venture capital firms. Capital Innovators provides companies with intensive project-based mentorship, as well as access to free accounting, legal, marketing and IT services.
Kaufmann Research has ranked Missouri the sixth best state for entrepreneurial activity and Kiplinger placed St. Louis in the top ten among U.S. cities for startups.
Applications are currently being accepted for the next class of Capital Innovators companies. The deadline to apply is June 15. To see more information about the Capital Innovators program, visit www.capitalinnovators.com.