Venture Debt and Economic Development Assistance

According to Dan Primack’s Term Sheet, Virdia (whose name was changed from HCL CleanTech), “a Redwood City, Calif.-based developer of cellulosic sugars, has raised $20 million in new VC funding from existing backers Khosla Ventures, Burrill & Company and Tamar Ventures. The company also has secured $10 million in venture debt from Triple Point Capital and signed a $75 million  with the Mississippi Development Authority to build manufacturing plants in the state. www.virdia.com”

The interesting thing here is the venture debt from Triple Point Capital and the assistance from Mississippi to build manufacturing plants. Venture-backed firms and strong angel-backed firms can access debt even though they don’t fit the typical debt profile for a bank. Any company that will make a large enough impact on job creation can access economic development funds from a number of different states, counties and cities, depending on the economic impact that company will provide. Investigate. Check first with your (or your targeted) state’s economic development entity for a list or introduction to available resources.

Like what you read here? Sign up for Dan Primack’s Term Sheet by going to: www.GetTermSheet.com.

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About Tiffany C. Wright - The Resourceful CEO

Tiffany C. Wright is the author of “The Funding Is Out There! Access the Cash You Need to Impact Your Business” and “Solving the Capital Equation: Financing Solutions for Small Businesses.” She is the founder of The Resourceful CEO, which helps owners of small/medium-sized businesses prepare their businesses for sale. Tiffany has an MBA from the Wharton School of Business, sits on non-profit boards and serves as a business mentor with the Cherie Blair Foundation.
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