Founded in 1987, Ames Seed Capital is an equity based investment fund operated by the Ames Regional Economic Alliance. We provide equity-based funding for central Iowa startups at seed and early growth stages. The capital we invest is provided by individuals and businesses primarily located in central Iowa.
Purpose: Ames Seed Capital (ASC) makes investments in exchange for equity (ownership). Our goal is to assist businesses achieve growth, leading to an “exit” which creates a commensurate rate of return for Ames Seed Capital investors.
Fund: ASC is a fund with a decision-making board of directors which provides the advantage of not having to pursue investors individually.
Prospective businesses should be able to demonstrate a credible plan and a reasonable degree of traction with prospective partners or customers.
Seed stage businesses are often pre-revenue but have compelling progress in validation of products and markets.
Growth stage businesses are sometimes cash-flow negative but have achieved relationships with key partners and have paying customers
Our investments range from $50,000 to $400,000. Investments at the larger end of the range are often achieved in multiple investment tranches.
Our Purpose/Cause/Passion: Driving business and community vitality in the Ames region.
Our Niche: Being connectors for our customers to positively impact regional vitality.
Core Values: Customer Driven, Integrity, Team Player, Good For It, Innovative, Greater Good
The three key pillars that will drive our will be: Leadership, Engagement, and Advocacy
Investments are limited to businesses in Central Iowa, which does not necessarily require a global or U.S.A headquarters in Central Iowa, but at minimum a significant operation, such as an R&D laboratory or manufacturing facility.
Investments are not focused on a specific industry. The common factors are cutting-edge products, large market opportunities and high growth potential.
ASC can operate as a lead investor; however, investments are often made in partnership with other funds and investors.
Our process is flexible but generally consists of the following steps:
Introduction: The first meeting is often a phone call, Zoom or a personal meeting with ASC Director Mike Upah, or with an ASC board member. Please email a request to meet to Mike Upah (Mike@AmesAlliance.com) and include a business summary.
Small Group: A typical second step is a small group meeting with three to five managers. The result can be an invitation to pitch the full ASC board; a pause for ASC to gather information and determine the next step; or the setting of a milestone which, when achieved, will be an opportunity for reconnection.
Full ASC Board: A pitch to the full ASC board can range from an opportunity to create familiarity and feedback, to a vote on investment.
While there are many formats for a fundraising pitch, those that are well done strike a balance between being concise, focused and informational. Presentations are not required to be in any specific format, but a guide to making a presentation is available.
Meetings typically occur at the Ames Regional Economic Alliance Building at 304 Main Street in Ames, but can be offsite if that is useful for demonstration.
Ames Seed Capital began operations in 1986 and is currently investing from Fund VII, which is composed of 101 investors with a collective $4.235M investment commitment. Each fund is composed as a cohort of investors.
Questions about how to become an Ames Seed Capital investor should be sent to ASC Director Mike Upah (Mike@ameslliance.com).
The Ames Regional Economic Alliance (AREA) is the parent organization of Ames Seed Capital and provides significant support and resources for operating the fund.
Contact Mike Upah
Director, Ames Seed Capital
mike@amesalliance.com
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