InnoVentures Capital Partners has closed its second fund with $12 million available in venture debt commitments for small companies in
InnoVentures Capital Partners announced today its second fund with $12 million available for venture debt investment in early-stage service, manufacturing and technology companies. This new fund is a part of the family of UTFC funds, which InnoVentures manages. It is paired with the first fund, which to date has provided investment in 55 companies since 2001.
InnoVentures invests in small companies in Utah and surrounding states by providing subordinated debt to start-up and growing businesses. Led by managing directors Steve Grizzell, Damon Kirchmeier and Scott Stenberg, InnoVentures will utilize Fund II to provide flexible entrepreneurial financing to propel the development of growing companies.
“InnoVentures is unique among venture capital leaders in the region with our focus on providing subordinated venture debt, which can be a much easier pill to swallow than other means of funding,” Kirchmeier said. “This new fund helps expand upon our established track record of helping our clients attain the next level of success with a focused, flexible investment strategy.”
InnoVentures has defined the venture debt category, which is an investment made by a venture capitalist in the form of debt as opposed to equity. It is typically structured as a term loan with a small warrant coupled with interest. One benefit is that entrepreneurs give up less ownership with venture debt than is usually required by equity investors.
“When it comes to venture capital, most small businesses don't need millions of dollars in funding; most need a few hundred thousand to catapult them to the next stage of growth,” Grizzell said. “Our large portfolio of small businesses and our ability to secure this second fund underscores the importance of this type of resource for growing companies in the intermountain region.”
Infopia, an InnoVentures portfolio company, provides software and best practices to help merchants grow their online business. From inventory and order management, to expanding sales on websites, comparison shopping engines, and marketplaces like eBay and Amazon, Infopia has the tools to help increase online revenues.
“InnoVentures is a tremendous partner,” said Bjorn Espenes, CEO of Infopia. “Over the years we have used the venture debt obtained through InnoVentures primarily to fund continued growth. It has put us in a position to take advantage of opportunities in the marketplace that we otherwise wouldn't have been able to do.”
For more information, please visit www.innoventurescapitalpartners.com.
About InnoVentures Capital Partners
InnoVentures is a licensed Small Business Investment Company (SBIC) located in Salt Lake City, Utah. InnoVentures focuses on providing venture debt funds for early-stage growing high tech, service and manufacturing companies. Its unique approach to providing the right amount of flexible entrepreneurial financing, up to $500,000, makes it possible to propel the development and advancement of market-leading companies. Visit www.innoventurescapitalpartners.com.