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Commonwealth Seed Capital

Commonwealth Seed Capital invests in Kentucky-based early-stage companies, bridging the gap between friends-and-family and seed funding.

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Description

Commonwealth Seed Capital (CSC) is a state-affiliated venture fund managed by the Kentucky Cabinet for Economic Development. It is designed to foster the growth of high-tech, early-stage companies based in Kentucky by providing critical seed-stage investment capital.
  • Seed & Early Stage: CSC targets companies that have completed the initial research and development phase and are ready for commercialization or scaling.
  • Kentucky Small Business Innovation (KSBI): It often co-invests alongside federal SBIR/STTR grant winners.
  • Method: Founders must submit a formal request for investment through the Kentucky Cabinet for Economic Development or the KY Innovation office.
  • Requirements: A comprehensive business plan, a pitch deck, and financial projections are mandatory.
  • Matching Fund Requirement: CSC is a matching fund; applicants must demonstrate that they have secured (or are in the process of securing) private capital that at least matches the CSC investment amount. 

Eligibility

  • Geography: The company must be headquartered in Kentucky or have a significant majority of its operations and employees within the state.
  • Sectors: High-growth technology sectors including AgTech, Healthcare IT, Advanced Manufacturing, and Energy.
  • Economic Impact: Priority is given to ventures that demonstrate the potential to create high-paying jobs within the Commonwealth. 

Process

  1. KY Innovation Referral: Many applicants are first vetted through regional innovation hubs (like Awesome Inc or Amplify Louisville).
  2. Due Diligence: A formal review process conducted by the CSC Board of Directors and investment analysts to evaluate technical feasibility and market potential.
  3. Matching Verification: The fund verifies the commitment of private co-investors.
  4. Board Approval: Final investment decisions must be approved by the Commonwealth Seed Capital Board. 

What an Applicant can Obtain

  1. Matching Capital: State-backed funding that "de-risks" the deal for private angel investors or VC firms.
  2. Institutional Credibility: An investment from CSC serves as a strong signal of state support for future institutional rounds.
  3. Ecosystem Access: Direct links to Kentucky’s network of specialized business consultants and statewide innovation resources.
  4. Board Guidance: In some cases, CSC or its partners may provide observer roles to assist with governance and scaling.