Kansas Bioscience Direct Equity Investment Program

Program Goals

The goal of the Direct Equity Investment Program is to ensure Kansas is positioned as a national leader, as acknowledged by investment professionals, in providing financial and management support to early stage technology companies. Specifically, the objective of the Direct Equity Investment Program is to collaborate with private investors, accredited investors and others to provide direct equity investments into high growth potential bioscience startups and companies.


Any equity investments the KBA makes will be on a syndicated basis. The KBA will co-invest equity capital alongside professional investors on the same terms and conditions as experienced investors. Professional investors are defined as angel (SEC accredited investor standards), venture capital, private equity or strategic partner investors. This approach allows the KBA to leverage professional market and technical due diligence, participate in terms set by experienced investors, and to share risk with professionals experienced in the management of seed, early-stage investments.


Eligibility

Companies eligible

  • Bioscience company in one of the following North American Industry Classification System codes: 325411, 325412, 325413, 325414, 325193, 325199, 325311, 325320, 334516, 339111, 339112, 339113, 334510, 334517, 339115, 621511, 621512, 541710, 541380, 541940, 622110.
  • Principal place of business in Kansas
  • Minimum of one full time employee/consultant (one person full time, not just a total of one FTE) and a minimum of a 75% Kansas residency rate
  • The management team or founders must have a minimum of $25,000 aggregate cash investment in the company.
  • The applicant’s primary business is the provision of a bioscience process, product or service and for a product company, the applicant owns, has filed for, or has a license to use protected, proprietary intellectual property.
  • Company may not be a home based operation.
  • The enterprise will commit to retain its principal operations in Kansas for a period of at least 10 (ten) years after the closing.
  • The enterprise is in good standing with the State of Kansas and all other government entities.
  • Earned in the co-investment and will recover its investment before or simultaneously to all co-investors.
  • The KBA’s interest shall not represent more than 49% of the voting stock of the applicant.

Key Evaluation Criteria

It is expected that all eligible applicants for equity investment will demonstrate the following goals:

  • Attractive financial return to the KBA
  • Job creation
  • Advancement of KBA bioscience clusters
  • Wealth creation
  • Leverage Professional Investors, private, venture capital, or strategic investment

Direct Equity Investment Application

“Entrepreneurs are always talking about getting something called ‘smart’ money, which simply means we are always looking for investors who can add value beyond just money. The KBA is ‘smart’ money.”

- Bruce Richardson, Chief Financial Officer,
  KC BioMediX