Dell said it launched a $100 million credit fund to assist startups interested in buy Dell products and products through its site. Qualified angel and venture-backed companies can access up to 10 percent of their funded amount, up to $150,000, with accelerated, limited credit terms, the company said in a press release.
$100M Dell Innovators Credit Fund Ignites Startup Growth and Innovation
New initiative targets startup debt capital needs, connects firms with scalable technology solutions, markets and networks for growth
NEW YORK, June 7, 2012—Dell today announced the Dell Innovators Credit Fund, a first-of-its-kind Dell financing initiative that provides entrepreneurs up to $100M in the financial and scalable technology resources they need to maximize potential for innovation, speed to market and job creation.
A new Technology CEO Council (TCC) paper reports the highest-growth startups generate an outsized share of new jobs in the United States: 40 percent of new jobs come from the top-performing 1 percent of companies in any given year. Additionally, Web-knowledgeable small- and midsize-firms in a range of industries outpace their less Internet-savvy counterparts in job creation by more than two to one, according to a McKinsey Global Institute study cited in the TCC report.
The Dell Innovators Credit Fund aims to get end-to-end, scalable technology solutions in the hands of growing businesses during that crucial early time in market. Through Dell Financial Services, qualified angel and venture-backed companies can access up to 10 percent of their funded amount, or up to $150,000, with accelerated, limited credit terms. For those in needs of higher credit, additional financing is available on a fast track basis with a few extra steps.[i]
“Behind most great company growth stories are pioneering uses of technology. In talking with business owners and listening to their needs, they tell us what they need most is access to capital and technology that enables them to grow,” said Steve Felice, Dell president and chief commercial officer. “Dell’s new Credit Fund provides credit and access to technology to help fuel global growth and innovation while helping startups preserve precious equity capital for other business needs.”
Dell Financing Fuels Startup Growth
The Dell Innovators Credit Fund was created by Dell’s first Entrepreneur in Residence, Ingrid Vanderveldt, with the support and guidance of Dell executives and team members as well as the esteemed 13-member Dell EIR Advisory Board consisting of today’s leading entrepreneurs, visionaries and innovators.
“Using the Dell Innovators credit to create our web-enabled and all-electric super scooters is really a win-win-win for our company, our investors and for Dell,” said Lauren Flanagan, executive chairman and angel investor of Ann Arbor-based Current Motor. “In exchange for a low monthly payment, we get one point of contact and a really comprehensive, scalable technology solution that allowed us to get to market six months ahead of schedule, while conserving our equity capital for sales, marketing, research and development.”
Dell Innovators Credit Fund customers also receive benefits including a dedicated Dell sales team and ProSupport Services for a single point of accountability with access to highly trained experts and 24/7 total support on their top technology needs.
“To build scalable, high-return startups, entrepreneurs need access to early stage capital and great resources,” says Marianne Hudson, Executive Director of the Angel Capital Association (ACA). “Through the launch of the Dell Innovators Credit Fund, Dell is helping promising entrepreneurs obtain the technology solutions they need to grow and get to market faster, while stretching the capital they receive from angels and venture investors.”
Dell’s Commitment To Entrepreneurs and Startups
Today’s announcement is the latest among Dell’s innovative initiatives – like the Dell Women’s Entrepreneur Network and recently announced 9-city Small Business tour - aimed at fostering the growth of small and midsize entrepreneurial firms.
Also launching today is the expanded Dell Entrepreneur in Residence community that includes specialized advice for entrepreneurs who are self-funded, seeking funding or already funded. The community also has additional information on the Dell Innovators Credit Fund. Entrepreneurs at all stages of growth are invited to join this community to access videos and case studies featuring successful businesses, advice from Dell and industry experts, and details on Dell initiatives and technology offerings.
Dell is committed to meeting the end-to-end needs of its customers—from the cloud to the data center to the desktop and out to the mobile endpoint with scalable IT solutions that are easy to use, quick to deploy and help customers of all sizes attain the innovation and efficiency they need to deliver real business value and results faster.
“Companies, like Current Motor and others we have pre-qualified for the Dell Innovators Credit Fund, value Dell’s ‘design-to-scale’ approach and entrepreneurial mindset that guides the creation of technology solutions that are agile, affordable and can grow as they do,” said Ingrid Vanderveldt, Dell’s first Entrepreneur in Residence. “Through its technology solutions, recently created Office of the Entrepreneur in Residence, and game changers like the Dell Innovators Credit Fund, Dell is committed to fueling the growth of entrepreneurs and the jobs they create.”
For more information about Dell Innovators Credit Fund, visitwww.dell.com/eir. Applications open Thursday, June 7, 2012.
As the visionary outcome of a true entrepreneur, Dell (NASDAQ: DELL) is committed to helping small and medium businesses grow and better serve their customers by drawing greater value from technology.