A nonprofit technology-based development organization with ties to Springfield has launched a venture fund to help develop startups in southern Missouri.
Cape Girardeau, Missouri-based nonprofit Codefi launched Innovate SOMO Funds on April 18, according to a company press release. Innovate SOMO Funds combines nonprofit and for-profit funds to co-invest in startups in his 47 southernmost counties in the state.
The funding was developed by Codefi and Missouri State University’s efactory, which jointly created the Southern Missouri Innovation Network (Innovate SOMO), according to a release. Innovate SOMO is a regional collaboration dedicated to developing entrepreneurship and innovation in southern Missouri.
Innovate SOMO Funds has raised a total of $2 million in nonprofit and for-profit funds, according to the release. We will focus on software-focused and enhanced solutions companies in industries such as information technology, technology manufacturing, financial services, and healthcare.
The fund is designed to provide capital to companies in the pre-seed and seed stages of development in often-neglected cities and towns in southern Missouri. The company expects most investments to be in the range of $50,000 to $200,000, according to the release.
“These funds are specifically designed to foster opportunities in these overlooked regions, where we see significant philanthropy and an interest in economic diversity and growth,” said James, President of Codefi. Dr. Stapleton said in the release.
Financial commitment from our partnership with Springfield
The fund received $700,000 in investment commitments from its southern Missouri partners, according to a press release. Codefi’s goal is to deploy initial funding within two to three years.
Initial investment was led by the Springfield-based Hatch Foundation and an anonymous donor from Cape Girardeau.
“Our foundation is excited to invest in supporting the next generation of entrepreneurs and the companies they inspire, and to create more quality services for people living in our communities,” said Erin D’Annastasio, executive director of the Hatch Foundation. It will create high-quality jobs.” release.
Bank of Missouri, which is headquartered in Perryville, Missouri, and has branches throughout southern Missouri, has committed $100,000 in administrative and administrative fees to the fund over the first two years, according to the announcement.
According to a release, Innovate SOMO launched a pipeline of programs in August 2023 aimed at attracting and supporting technology-based startup concepts, founders, and companies.
