The Arkansas Development Finance Authority’s Arkansas Venture Capital Investment Trust has made a significant economic impact since its creation in 2001, according to a study from Applied Economics of Phoenix.
The trust consists of four funds created to provide a unique set of financial resources for Arkansas startups: the Arkansas Institutional Fund, the Risk Capital Matching Fund, the ADFA Co-Investment Fund and the Seed & Angel Capital Network.
Here’s a look at each fund, with total fund investments, revenue impacts and estimated total economic impact of each fund:
• Arkansas Institutional Fund — Launched in 2003, this fund is managed by Cimarron Capital Partners and is based on a “fund of funds” investment model. It focuses on providing access to venture capital for innovative Arkansas startups and is dedicating $70 million to professional private equity and VC funds that commit to prospecting Arkansas. Total investment: $17.8 million. Total revenue impact: $6.3 million. Total economic impact (2004-13): $401 million.
• ADFA Co-Investment Fund — Started in 2011, this fund provides direct co-investments in Arkansas companies that have received commitments for a VC investment from qualified VC entities. Total investment: $3.5 million. Total revenue impact: $643,421. Total economic impact (2012-13): $24.7 million.
• Seed & Angel Capital Network — Another popular tool for IA startups, this fund was launched in 2011 to invest in Arkansas-based seed and angel funds. It was created to attract capital from private investors and to provide guidance to entrepreneurs seeking capital. Funding for this program comes from the SSBCI, which holds funds for investment. Total investment: $399,669. Total revenue impact: $140,677. Total economic impact (2012-13): $8.4 million.
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