About this programme
The Arkansas Venture Capital Development Fund (AVCDF) makes matching investments in Arkansas technology-based companies that are already raising private equity from angel, seed or venture capital investors. The fund is administered by the Arkansas Venture Capital Investment Trust (AVCIT) through the Arkansas Development Finance Authority (ADFA), part of the Arkansas Department of Commerce.
The fund exists to help Arkansas technology companies close out a private raise, not to be the first or only money in. It only steps in alongside investors who are already committed, and it invests on the same terms those private investors get.
How it works
AVCDF invests between $50,000 and $1,000,000 in a single company, capped at 20% of the total capital raise.
Before applying, the company must already have commitments from private investors covering at least 50% of the capital it is raising.
AVCDF's investment carries the same terms and conditions as the other private investors in that specific offering, so it does not negotiate separate terms.
Once funded, companies must keep reporting to ADFA: internally prepared quarterly financial statements within 45 days of each quarter-end, and audited annual financial statements plus employment reports within 90 days of fiscal year-end.
ADFA may also require life insurance on key personnel and can ask for shareholder or board information at any time.
Who can apply
The company must be a for-profit proprietorship, partnership, corporation or LLC, duly formed and in good standing with the Arkansas Secretary of State.
It must be technology-based and Arkansas-based, meaning headquartered in Arkansas with a significant managerial and employee presence in the state.
It needs a board of directors with at least three members.
It must already have commitments from private investors for at least 50% of the capital it is raising in the current round.
AVCIT gives preference to companies whose focus aligns with Arkansas's target industries and university research priorities, and to ventures that create high-wage, high-skill jobs.
How to apply
- Submit the official Arkansas Venture Capital Development Fund Application form (PDF, available on the ADFA program page).
- Contact ADFA's development finance team to discuss the specific investment offering and terms.
Documents you’ll typically need
- Arkansas Venture Capital Development Fund Application
- Ongoing: quarterly financial statements and annual audited financial statements plus employment reports, once funded
Frequently asked
Does AVCDF invest before I have any private investors lined up?
No. The company must already have commitments from private investors for at least 50% of the capital raise before AVCDF will invest.
How much can AVCDF put in?
Between $50,000 and $1,000,000 per company, and never more than 20% of the total capital raise.
Does AVCDF set its own investment terms?
No. It invests on the same terms and conditions as the other private investors in that specific offering.
Who do I contact about AVCDF?
Chuck Cathey, Vice President of Development Finance at ADFA (charles.cathey@arkansas.gov, 501-682-5906).
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.