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Investing in early-stage startups in Tennessee

Powered by Launch Tennessee, InvestTN makes equity investments into Tennessee-located startups (Pre-Seed, Seed, Series A and B) and venture capital funds.

The program is funded through the U.S. Treasury’s SSBCI Program. →

InvestTN goals

  • Move money into the ecosystem and off the sidelines by requiring founders to secure a minimum 1-to-1 private match — with goals of catalyzing $10 of private capital for every SSBCI dollar invested over the lifespan of the company
  • Boost scalable businesses located in Tennessee that are well-suited for venture funding​
  • Support companies operating in industries that are driving the state’s growing economy​
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InvestTN is made up of three funds — the Regional Seed Fund, the Growth Fund, and the Multi Fund.

In collaboration with Launch Tennessee’s entrepreneur center partners, supports early-stage startups across the state. Offers investments ranging from $25,000 – $250,000.

Am I a fit for InvestTN’s Regional Seed Fund?
To qualify for the Regional Seed Fund, you will work with a designated entrepreneur center in your area. If you’re not already connected to one of our seven entrepreneur centers across the state, the LaunchTN team will make that connection. To qualify, you must also have a venture-backable business model.

InvestTN can make a conditional commitment that startups are able to leverage to attract matching investors (angel investors, family office, early-stage venture capital, etc.)

Need to get in touch with your local entrepreneur center? Contact your local entrepreneur center.

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Fuels Tennessee-located growth-stage companies with strategic capital to scale. Our investments range from $250,000 – $3 million in high-potential businesses.

Do I qualify for InvestTN’s Growth Fund?
The Growth Fund engages across Seed, Series A, and Series B stages and makes investments in businesses that are — ideally — operating in industries that are driving the state’s growing economy.

For this fund, InvestTN wants to see applicants with the ability to bring mature, experienced, strategic venture funds and investors to join the round. InvestTN can make a conditional commitment that startups can leverage to attract that type of investor. 

Industries include but are not limited to:
  • Advanced Energy
  • Advanced Manufacturing
  • AgTech
  • BioTech
  • ClimateTech
  • Consumer Products and Technology
  • Data and AI
  • FinTech
  • HealthTech
  • Mobility and Logistics
  • SaaS businesses
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The Multi Fund targets venture capital funds dedicated to making investments in Tennessee-located companies. Multi Fund Limited Partner commitments range from $1 million to $3 million, which can serve as anchor investments in the first closing of a new fund. Eligible venture funds are targeting a fund size of $10 million to $30 million.

*The Multi Fund is presently fully deployed. We are not currently taking new applications.

Why choose InvestTN?

  • Kickstart your round — Leverage an InvestTN conditional commitment to attract other investors to grow and scale your business.
  • Access to additional capital — LaunchTN maintains a network with angel investors and early-stage venture funds interested in co-investing.
  • Community support — Join a thriving community of founders and supporters in Tennessee.
  • Low cost of living — For residents outside of Tennessee, making the move here is an easy choice. Tennessee is one of the most affordable places in the country to live and work.
  • Access to talent — In addition to a robust ecosystem of partners, including entrepreneur centers, universities, and research institutions, Launch Tennessee also facilitates a Summer Intern Program. Interested portfolio companies can gain access to top talent within the state!

Investment process

Interested in applying for funding from InvestTN... but still unsure how to get started?

Don't worry, we've got you.

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InvestTN success stories

“LaunchTN’s investment has indeed been catalytic, sparking considerable interest among potential investors.”
Nikki Sanz
Nikki SanzGIGGS, founder
“The investment by Launch Tennessee in iO Urology was pivotal for our investment syndicate. It demonstrated that Tennessee — with our Tennessee-based lead VC Solas Bioventures — is a fertile ground for nurturing and financing promising medical technologies.”
Britton Garrett
Britton GarrettiO Urology, CEO
“InvestTN kept my company based in Tennessee. Prior to this contribution, I was looking at moving my company out of state to secure funding. This program is essential to growing businesses, igniting innovation, and promoting economic development in Tennessee.”
Téa Phillips
Téa PhillipsATS Innovations, founder

The U.S. Treasury’sSSBCIProgram

InvestTN is funded by the federal State Small Business Credit Initiative (SSBCI 2.0) program and administered by Launch Tennessee, a public-private partnership that supports the state's entrepreneurial ecosystem by providing capital, commercialization, and connections. The fund is managed by Launch Tennessee’s Capital team.

  • The American Rescue Plan Act reauthorized and expanded the State Small Business Credit Initiative (SSBCI) via the U.S. Treasury to provide $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities as the country emerges from the pandemic.

  • SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities.

  • Who’s it for? For access to capital managed and distributed by Launch Tennessee, SSBCI funding is for startups and early-stage businesses that require venture capital or equity funding, as well as for SEDI-owned businesses.

  • Does my company qualify for InvestTN? Eligible companies have scalable business models, are located in Tennessee, and are well-suited for venture funding. In short, we are looking to invest in great companies with business models built to generate strong capital returns for our fund.

  • Companies that are ineligible include those that partake in speculative activities (oil, stock trading, etc.), earn more than half their revenue from lending activities, pyramid sales, activities prohibited by federal law (such as cannabis/marijuana), and gaming/gambling activities.

 

To learn more about the program, including comprehensive details on the guidelines and requirements, visit the SSBCI website.

Investmentprocess

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Interested in applying for funding from InvestTN... but still unsure how to get started? Don't worry, we've got you — just follow these steps:

This website has a ton of information to familiarize yourself with the InvestTN program, the U.S. Treasury’s SSBCI program that funds InvestTN, who we are, what we do, and, perhaps most importantly, the types of companies we’re hoping to fund.

This is just the first step in our process. We recommend blocking out some time when you’re filling it out, to ensure you’re answering questions accurately and thoroughly. The intake form helps us screen you for the appropriate InvestTN fund.

Once you’ve submitted your intake form, bear with us as our Capital Associates review your information. We’ll be in touch as soon as possible to find out whether you’re a fit for either of InvestTN’s funds. With increased interest in the program, this initial screening process may take a few weeks. Please be patient. 

If you’re a fit for either the Regional Seed Fund or the Growth Fund, you’ll receive an email with a link to our official application from a Capital team member. Incomplete applications will automatically be disqualified.

  • For Regional Seed Fund applicants, we strongly encourage you to work with the Capital Coordinator at your respective Entrepreneur Center and have them review your application prior to submission. 
  • For Growth Fund applicants, be as thorough as possible with the information you provide. 

Once you submit your application, our associates will get to work and dive into due diligence. This process may take up to 8-12 weeks with a number of calls and meetings with you and your colleagues. Rest assured, we’ll be in touch as soon as we’re ready and able to continue the conversation.

Launch Tennessee’s Investment Committee meets once a month (typically at the end of the month) to review applications and due diligence findings and formally vote to approve funding allocations. 

Once you receive a conditional commitment from InvestTN, it’s your turn to get to work and use that as leverage when looking to secure the required minimum 1:1 private capital match.  Remember: for every $1 of SSBCI funding you receive through InvestTN, the goal is to catalyze $10 of private investment.

*Please note: Launch Tennessee has the discretion to approve or deny any applicant throughout this process. Meeting all the requirements doesn’t guarantee acceptance.