The Office of the Deputy Mayor for Planning and Economic Development (“DMPED”) is soliciting grant applications from qualified private financial organizations to serve as the program administrator for the DC Venture Capital Grant Program.
Donor Name: Office of the Deputy Mayor for Planning and Economic Development (DMPED)
State: District of Columbia
Type of Grant: Grant
Deadline: 09/08/2023
Size of the Grant: Up to $8,595,180.00
Details:
The purpose of the VC Program is to increase access to capital for early-stage DC-based businesses. The Program Administrator will assist DMPED with the implementation of the VC Program and select and manage a network of venture fund managers to make investments in Eligible Businesses using funds provided by the State Small Business Credit Initiative (SSBCI).
DMPED seeks to deploy the federal SSBCI funds through multiple investment firms. DMPED will select a private third-party organization to serve as a Program Administrator for a fund-offunds approach. The role of the Program Administrator is to implement the VC Program in partnership with DMPED and select and monitor the Fund Managers that are deploying the funds directly to businesses. DMPED will not take an ownership interest in a fund or directly in a business. Proceeds from the VC Program portion of an investment will be recycled into the program for future investments.
Funding Information
Subject to the approval of DMPED’s application to Treasury and the District’s budget appropriation, it is anticipated that DMPED will receive a total of $26,046,000 in SSBCI funding. It is planned that DMPED disburse these funds to the Program Administrator in three tranches. The first tranche will be $8,595,180.00. Pending receipt of such funds from Treasury, DMPED will award one grant of up to $8,595,180.00 to the Program Administrator to support the implementation of the VC Program. The Program Administrator will be eligible to receive additional funds, for a total eligible amount of $26,046,000.00, pending DMPED’s receipt of the funds from Treasury and satisfactory performance by the Program Administrator.
Eligibility Criteria
Eligible applicants include qualified private financial organizations including a partnership, corporation, trust, limited liability company, Community Development Financial Institution, or a consortium of partnerships, corporations, trusts, or limited liability companies, whether organized on a profit or not-for-profit basis, with demonstrable financial, management, and investing capacity that satisfies the criteria below:
- Sound strategies for how to implement the VC Program and investment criteria to achieve DMPED’s goals and objectives and direct experience in advising on strategies for similar programs with favorable results;
- Strategies to support the Fund Managers in their efforts to source Eligible Businesses, underwrite deals, and fundraise private capital;
- A management team with significant experience investing in Eligible Businesses;
- Experience selecting venture capital funds for investment, including evaluating their investment thesis and managerial experience and expertise;
- Experience managing a network of fund managers, including monitoring portfolio performance and reporting requirements;
- Sufficient internal capacity, including leadership experience, staffing, infrastructure, systems, financial management, and standard operating policies and procedures to market, administer, and monitor the VC Program and meet reporting requirements; and
- Priority will be given to organizations with:
- Previous experience operating government (local, state, or federal) investment programs or public credit programs;
- Familiarity with DC entrepreneurial ecosystem; and
- Expertise on issues of diversity, equity and inclusion within the DC technology and innovation ecosystem.
For more information, visit DMPED.
