Alaska Small Business Development Center

Venture Capital/Equity Funds

Alaska Equity Fund (AKEF)

The $10 million Alaska Equity Fund provides financing by purchasing an ownership interest or providing equity-like loans to enterprises that typically do not participate in debt financing markets due to their business stage and structure.

As a Fund of Funds, we invest in Partner Funds as an LP and support their efforts to deploy capital across Alaska, with a particular focus on Very Small Businesses (VSBs) and Socially and Economically Disadvantaged Individual (SEDI) owned businesses.

Goals and Objectives

Overall, the AKEF program’s purpose is to expand access to private debt and equity financing and spur lending to private sector businesses that might not be getting the investments they need to grow and create jobs. Treasury requires that SSBCI funding results in $10 of new small business investment for every $1 of public or SSBCI funds invested. 

Specifically, the AKEF provides financing by purchasing an ownership interest or providing equity-like loans to enterprises that typically do not participate in debt financing markets due to their business stage and structure. 

These funds will be used to drive private sector investments in businesses that will innovate Alaska’s key industries, create high paying jobs and address some of the long standing barriers to economic growth in the state such as logistics, access to health care, food security and energy costs.

How it Works

In late 2022, the AK SBDC launched Alaska’s first statewide SSBCI lending and equity programs. As a Fund of Funds, we invest in Partner Funds and support their efforts to deploy capital across Alaska, with a particular focus on Very Small Businesses (VSBs) and Socially and Economically Disadvantaged Individual (SEDI) owned businesses.

Fund Managers and Investors

Requests For Proposals (RFP) will be released before the end of 2022, with the primary goal of finding Partner Funds that will work closely with AK SBDC and AKEF staff to ensure strict compliance with US Dept. of Treasury regulations and reporting requirements. All private sector investors seeking an SSBCI capital match are encouraged to apply, as we are seeking a diverse portfolio of investors dedicated to economic development in Alaska. 

Businesses Seeking Investment

Depending on the size, stage, and type of business, receiving an equity investment can help scale operations, hire new employees or purchase equipment. We aim to be sector-agnostic and will leverate the SBDC’s full suite of support services, bolstered by technical assistance programs specifically geared to support businesses seeking AKEF and SSBCI funding. 

Eligibility

Venture Capital/Equity Firms possessing the following are eligible:

  • Demonstrated ability to raise $1 – $5 million in matching funds
  • Program dollars may not represent greater than 50% of venture fund committed capital  
  • Resources, expertise, and intent to invest in companies that are located in AK
  • Target investment sectors that are technology related or high growth oriented (i.e., health technology, advanced manufacturing, mariculture, etc.)
  • Able to demonstrate that SSBCI capital is the cause and result of minimum 1:1 private capital match. 

Questions?

If you represent a qualifying VC/Equity Fund and are interested in participating, or if you have general questions, please email Erin Baca at erin.baca@aksbdc.org to be notified of the Request for Fund Proposals (RFP).

How To Apply

A lenders application link will be posted here in January, 2023.

SSBCI News

Alaska Launches $59 Million Small Business Financing Program