Arkansas Risk Capital Matching Fund

Enterprises eligible for ARCMF financial assistance must be classified in one or more of the following business sectors:

1. Advanced materials and manufacturing systems;
2. Agriculture, food and environmental services;
3. Biotechnology, bioengineering, medical technology and life sciences;
4. Information technology;
5. Transportation logistics;
6. Bio-based products.

Matching funds are for:

1. Preparation of a sound business plan;
2. Conducting market research;
3. Establishing marketing plans;
4. Software, hardware or equipment on which the business is being built;
5. Development of laboratory, pre-clinical or other testing procedures and results;
6. Attaining proof of concept;
7. Building experimental or pilot-scale models of products or facilities;
8. Other similar milestones required for advancement of very early stage enterprises.

Investments from the Technology Validation Account are limited as follows:

(a) Investment in the technology validation process will be in the form of one-to-nine (1:9) matching funds. Funds will provide for up to 90% of the cost of the validation process to be matched with at least 10% of the cost provided by the company.

(b) Any enterprise receiving an investment from the Technology Validation Account shall currently have a business valuation of less than two million dollars ($2,000,000) prior to investment.

Investments from the Enterprise Development Account are limited as follows:

(a) Investment in the enterprise development process will be in the form of four-to-one (4:1) matching funds. Funds will provide for investments up to 20% in the early stage development process to be matched or augmented with at least 80% provided by angel, institutional or other investors.

(b) Any enterprise receiving an investment from the Enterprise Development Account shall have a business valuation of less than twenty-five million dollars ($25,000,000) prior to investment.

(a) Equity capital means common stock, preferred stock, royalty rights, limited partnership interest, limited liability company interests, and any other equity, securities or rights that evidence ownership or investment in private enterprises; and

(b) Near equity capital means secured, unsecured, undersecured, subordinated or convertible loans or debt securities.

First, please submit a one-page business concept executive summary including a paragraph on each of the following:

1. The business outline (product or service, customer and why they would buy);
2. Current state of the business (concept, start-up, prototype, customer base, expansion, sales, roll-out or other);
3. Next steps to be taken by the business;
4. Amount of money needed, including the source and description of the matching funds.

Please submit the executive summary and a detailed resume of each of the principals to ARCMF via email to Chuck Cathey at or Gene Eagle at or mail hard copy to:

Arkansas Development Finance Authority
Arkansas Risk Capital Matching Fund (ARCMF)
P.O. Box 8023
Little Rock, AR 72203-8023

Executive summaries submitted will be screened by a tri-agency state review committee and a private sector advisory committee of at least 5 members. If recommended for potential investment, subsequent steps involved require more detail.

Entrepreneurs who would like an idea of what will be required please click here for application information. For information regarding potential enrollment in EquityNet please click here.

If you would like to speak about the program in person, please call Chuck Cathey at 501-682-5906 or Gene Eagle at 501-682-5905; you may email and as well.