The Rotunda Fund does not require entrepreneurs to give up a percentage of their companies, which the center said makes the fund a first. Instead, the investment is paid back monthly as a negotiated percentage of sales over a period of five years or at a 2x return to the fund.
The fund is targeted for entrepreneurs who are not able to get a traditional bank loan but are on track to double their sales in the next two years.
“We see companies at the Entrepreneurs’ Center that don’t have friends and family who can invest, don’t have collateral, or are at their credit limit, but still need funds to grow. This is the target company for our investment,” Kim Frazier, director of growth initiatives at the EC and the Rotunda Fund manager, said in a release.
Credit: JIM NOELKER
Credit: JIM NOELKER
An open-ended fund, the Rotunda Fund will close out its first year of fundraising at the end of 2021 with an expected $200,000 raised and expects to make its first investments
Companies interested in receiving an investment may apply now at: https://www.surveymonkey.com/r/ZBYJSRB
The Rotunda Fund invests in the EC’s client companies, including those that have used the Small Business Development Center (SBDC), portfolio companies of the Entrepreneur Service Provider (ESP) program, or small business innovation research companies that have participated in the Technology Acceleration Programs (SBIR TAP).
“We expect investments from the Rotunda Fund to be as diverse as the companies that we see at the EC,” said Scott Koorndyk, president of the Entrepreneurs’ Center. “From solo entrepreneurs to sophisticated research companies, our clients can sometimes struggle to raise capital, and we believe the Rotunda Fund can help bridge this gap.”
Entrepreneurs interested in receiving an investment from the fund can apply now at https://www.surveymonkey.com/r/ZBYJSRB or contact Frazier at kfrazier@ecinnovates.com.
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