About this programme
InvestMS is an equity investment program for Mississippi-based early-stage companies and venture funds, powered by Innovate Mississippi, a nonprofit that supports technology entrepreneurs and emerging companies in the state's startup ecosystem through capital, networking and development efforts. InvestMS invests at the Pre-Seed through Series A stages.
The program is enabled by $86 million in federal funding for Mississippi through the U.S. Department of the Treasury's State Small Business Credit Initiative (SSBCI), which more broadly supports equity investments, debt lending or technical assistance to expand access to capital. Meeting InvestMS's eligibility criteria is not a guarantee of funding.
A minimum of 66% of InvestMS capital must go to businesses majority-owned (51% or more) by Socially and Economically Disadvantaged Individuals (SEDI), a category that includes people in CDFI or USDA-designated rural areas and those who have faced credit discrimination based on race, gender, veteran status, disability or rural residence.
How it works
For startups, the InvestMS Direct Fund invests between $50,000 and $1 million in early-stage companies. A 1:1 private capital match is required, with a minimum of $50,000 committed from private investors.
For venture funds, InvestMS targets investments of $1 million to $5 million per fund, also requiring a 1:1 private capital match, of which at least 50% must already be secured at the time of application.
Deals use standard venture instruments such as convertible notes or preferred equity, with customary protections including information rights and pro-rata participation rights. InvestMS does not take board seats, but it does hold board observation seats.
Once terms are set, closing documents are exchanged with investors, which starts a 90-day window during which the private match must close; capital transfers after that. InvestMS prefers that all investors in a round close together.
Portfolio companies must provide books-and-records access to the Treasury Inspector General and the Government Accountability Office, as required under the federal SSBCI program. Loan or investment proceeds cannot be used to repay taxes, purchase ownership stakes, or fund prohibited activities.
Who can apply
The business must be registered to do business with the Mississippi Secretary of State and have a working physical office in Mississippi, meeting at least one of: headquartered in Mississippi, a majority of the C-Suite based in-state, or a majority of employees based in-state.
The company must have a scalable business model suitable for venture funding. Ineligible sectors include speculative trading, lending-focused businesses (where lending is more than 50% of revenue), pyramid sales, federally prohibited activities such as cannabis, and gaming or gambling businesses (where that activity is more than one-third of revenue).
At least 66% of InvestMS's capital overall must go to SEDI-qualifying businesses, defined as majority-owned (51%+) by individuals in CDFI/USDA rural areas or by people who have faced credit discrimination on the basis of race, gender, veteran status, disability, or rural residence.
How to apply
- For startups: submit the intake form; the investment committee reviews live pitches monthly, and applications are reviewed on a continuous basis with no fixed deadlines. The process typically takes a few weeks to several months.
- For venture funds: applications are reviewed on a rolling basis, with the process from application through legal review typically taking several months.
Frequently asked
How much can InvestMS invest in my startup?
The InvestMS Direct Fund invests between $50,000 and $1 million in early-stage companies, and requires a 1:1 private capital match with a minimum of $50,000 from committed investors.
Do I need to already have investors lined up?
Yes. Startups need a 1:1 private capital match. Venture funds also need a 1:1 match, with at least 50% of it already secured at the time of application.
What kind of businesses are not eligible?
Speculative trading businesses, businesses where more than 50% of revenue comes from lending, pyramid sales schemes, federally prohibited activities such as cannabis, and businesses where gaming or gambling makes up more than one-third of revenue.
Does InvestMS take a board seat?
No. InvestMS does not take board seats, but it does hold board observation seats, along with customary protections like information rights and pro-rata participation.
How long does the process take?
For startups, typically a few weeks to several months from application to funding. For venture funds, the process from application through legal review typically takes several months.
What happens after terms are agreed?
Closing documents are exchanged with investors, starting a 90-day window in which the private match must close before capital transfers. InvestMS prefers that all investors in a round close together.
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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.