VCET will help you prepare for and identify the financial support your company needs to start and scale here — whether that’s through direct investment by the Vermont Seed Capital Fund, accessing research and private grants, or using our syndicate of private investors.

We understand that investment from the Vermont Seed Capital Fund isn’t for everyone. No problem. We leverage our networks to help prepared teams find the right investor for their companies.

Investment Portfolio

The companies we assist have now raised over $200 million so far. View a selection of these below:

Burlington Code Academy

Burlington Code Academy

Burlington Code Academy offers a 12-week coding bootcamp to launch tech careers in the state.

Semiprobe

Semiprobe

Semiprobe supplies modular probe and inspection equipment for the semiconductor industry.

NextCapital

NextCapital

NextCapital provides institutions with an integrated and configurable platform to deliver automated personal financial advice.

Benchmark Space Systems

Benchmark Space Systems

Benchmark Space Systems offers low-cost propulsion systems for the rapidly growing small satellite market.

Pwnie Express

Pwnie Express

Pwnie Express provides real-time threat detection of the wired and wireless devices you need to defend against.

Horse Network

Horse Network

Horse Network is a digital platform for the equine community, serving horse lovers, professionals, athletes, and more.

VT Seed Capital Fund

VT Seed Capital Fund

$4.1 million invested so far of the revolving early stage venture capital fund. To date, 22 companies have been invested into.
Established 2010.

Draker

Draker

Draker, a BlueNRGY Group Ltd. Company, is delivering the industry's most robust solar performance and asset management solutions.

InTACT

InTACT

inTACT Products enable blind users to create, edit, and share freehand tactile graphics independently.

Hear Forward

Hear Forward

Hear Forward frees the intelligence locked in social media, through proprietary algorithms and visualization.

Faraday

Faraday

Faraday optimizes every stage of the B2C revenue journey, from acquisition to retention using AI and machine learning.

Budnitz Bicycles

Budnitz Bicycles

Budnitz Bicycles creates the world’s best titanium bicycles, built custom for each client.

Sound Innovations

Sound Innovations

Sound Innovations designs noise reduction technology and protection for military and consumer uses. Acquired 2014

GPMS

GPMS

Green Power Monitoring Systems builds low-cost, lightweight prognostic health management systems.

Aprexis

Aprexis

Aprexis Health Solutions creates comprehensive solutions to patient prescription adherence.

Northern Reliability

Northern Reliability

Northern Reliability designs, builds, installs and services ultra-reliable electric power storage systems.

View MoreView Less

Sectors

Sectors include, but are not limited to:

  • Renewable Energy Storage
  • Advanced Manufacturing Equipment
  • Cyber Security / Internet of Things
  • Consumer Products
  • Financial Services Technologies
  • Ag Tech
  • Artificial Intelligence / Marketing
  • Aerospace/Aviation
  • Urban Transportation
  • Consumer Media & Commerce
  • Medical devices
  • Healthtech software and systems

Vermont Seed Capital Fund

The Vermont Seed Capital Fund, LP is looking for select investment opportunities in early stage, high opportunity, technology based companies in Vermont. Objectives are to impact next generation job and wealth creation in Vermont by providing companies and entrepreneurs access to early stage risk capital. The fund is a revolving, “evergreen” equity fund with $5.1 million of initial capitalization from the State of Vermont and U.S. Senator Patrick J. Leahy. The Vermont Economic Development Authority (VEDA) is a strategic partner for this fund.

This is a professionally managed venture capital fund which invests exclusively into Vermont startups and growing firms determined as offering high growth potential, financial return commensurate with risk, and public benefit for Vermonters. Portfolio firms also have access to substantive programs, facilities, partners, and value-adding services offered via a strategic relationship with the non-profit VCET organization.

Investment transactions range from $25,000 to $250,000. The fund can act as lead investor or as part of investment syndicate.

Basic Eligibility Criteria

Any Vermont based start-up, emerging growth firm, or team seeking to form a new company, relocate or expand into Vermont is eligible for consideration except if your company:

  • Has last 12 month sales greater than $3 million
  • Has headquarters or principal team location outside of, or not committing substantially to Vermont
  • Is a restaurant, retail store or real estate project

Each company or proposal submitted is considered on an individual investment basis. Venture capital is a highly competitive source of private funding. The Fund targets market based investment returns from high opportunity businesses with exciting market opportunities, innovative technologies and credible founding teams.

The Process

Start the conversation with our team early to share ideas, help refine the opportunity or for simply advice on market conditions, valuation parameters and to demystify the venture capital raising process.

The investment process takes considerable time and effort, so be prepared and forewarned. Funding is highly competitive and not all worthy firms will be funded. This is not a grant program. The process includes:

Initial Screening

Firms will be reviewed for Fund eligibility, suitability, entrepreneur qualities, and initial assessment. A response declining to pursue, offering alternative funding sources, or seeking follow up information will result.

Initial Due Diligence

Firms experience an in-depth review and assessment on their markets, business model, financials & capital path, existing & prospective management team, technology & products, sales & distribution, and comparative advantages, among other areas.

Advanced Due Diligence

Few firms reach this step. Transaction structure, valuation, terms, corporate and legal due diligence and remaining questions are completed. If an investment is considered desirable and fund objectives can be attained, then an Investment Recommendation is prepared for the Investment Committee and any invited domain or subject matter experts.

Investment Decisions

The independent Investment Committee has final determination on the proposed term sheet and investment recommendation. This committee is responsible for the approval of all investments.

Adding Value and Infrastructure

Portfolio firms have unique and advantageous access, if they so select, to facilities, professionals, networks, specialized research assets, and strategic partners associated with the VCET organization. In addition to Board participation, the Fund Manager and VCET team are actively engaged with firms on building teams, accessing critical first customers, strategic partnerships, corporate strategy, networking and training opportunities, mergers and acquisitions, and executive mentoring. All of which lowers burn rates, lowers investment risk, hastens progress towards “value-changing” events, and increases probabilities for market based returns and success as Vermont based employers.

Follow-On Capital and Investment Exit

For most seed stage firms, follow-on funding is necessary to achieve their potential. We offer an exceptional network of local, regional, and national venture firms, corporate investors, angel investors, grant and debt options to fund firm growth and next stage development. Our team will be involved in sourcing follow-on capital and active regarding exit and liquidity opportunities.

Read MoreRead Less

Seeking Investment?

Tell us about your company