Recognizing the critical role of entrepreneurs in a growing economy, the Milwaukee 7 has launched the M7 Capital Catalyst Fund to provide capital to companies as loans, equity or loan to equity with grant support for financing assistance, market analysis, and other support services.
Administered by MEDC and supported through the Wisconsin Economic Development Corporation's Capital Catalyst program, the fund is intended to help companies achieve measurable business development milestones, such as feasibility assessments, product development and market validation. Loans will be made in amounts ranging from $10,000 - $125,000. Examples of eligible uses include, but are not limited to: product development or market validation to secure investor funding, new equipment or marketing and sales assistance. Companies selected will have a strong potential for follow-on funding and growth.
The intended purpose of the Fund is to support a targeted group of advanced manufacturing and technology-focused companies. Though focused on the targets listed below, the Fund is also be open to any proposals from other high-potential companies that meet all of the other funding requirements.
This program is intended to provide capital roughly in a range of $10,000 - $125,000 to Southeast Wisconsin-based companies to assist them in achieving measurable and significant business development milestones. This could include reducing business model and/or technology risk, preparing the company for follow-on rounds of funding, or to accelerate commercial development of new technology, products and services.
The M7 Capital Catalyst Fund provides debt financing in collaboration with equity investment from accredited investors in a non-dilutive manner. This 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 break-even and beyond.
Interest rate, term and collateral will be decided on a project by project basis.
Funds can be used to accomplish milestones that accelerate commercialization including but not limited to:
No prepayment penalty.
M7VCF may take warrants.
Applicant will be responsible for attorney loan closing costs and other out of pocket expenses.
Besides aligning with the overall Fund purpose, applicants must specify how the use of the M7 Capital Catalyst funds directly and measurably accelerates commercialization of their technology/products/services and growth of their business, and/or positions the company for follow-on funding. Applicants must also specify the milestones that will be achieved that reduce risk for the company’s business model, market and product/technology.
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