For Immediate Release: Contact:
4/08/2005 Gene Eagle (501) 682-5903
Derrick Rose (501) 682-5904
ADFA Supports Seed and Early Stage Venture Capital Fund
On Friday, April 8, the Arkansas Development Finance Authority (ADFA) joined with angel investors across the state to capitalize the Fund for Arkansas’ Future (FAF).
FAF’s principal office is located in Little Rock, AR. The fund’s investment focus is on seed and early stage companies throughout Arkansas. A strong component of FAF’s mission is economic development through the capitalization of companies that have the opportunity for rapid growth and that will create well-paying jobs in the state. On a very selected basis, other opportunities, including without limitation early stage and possibly expansion stage financings will be considered for entities that have identified a significant market opportunity and need. Investments often, but not always, will be in technology or biotechnology-related companies. FAF will not be limited to or necessarily exclude any particular industry. ADFA’ s $100,000 investment will bring FAF’s fund total to $5.25 million. ADFA President Mac Dodson called the investment "a fabulous example of the way government can partner with private enterprise to generate real growth opportunities for new businesses.”
ADFA’s investment was made through the Arkansas Institutional Fund (AIF). The AIF is a $70 million fund of funds, supported by ADFA, that invests to help build the professional venture capital industry that serves Arkansas entrepreneurs.
"We have been working to build the private equity investment side of capital formation in Arkansas for many years. Through this effort we hope to build and grow many more successful business enterprises in Arkansas. This is an excellent next step for the ADFA Venture Capital Investment Program," said Gene Eagle ADFA Vice President of Development Finance.
“We were pleased to recommend supporting this effort in the seed and early stage area of the risk capital spectrum. It is hoped that over time, the AIF, supported by ADFA, will help build a vigorous venture capital industry in Arkansas that actively serves the state’s most promising entrepreneurs,” said Michael Tharp, AIF Fund Manager.
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