Codefi launches Innovate SOMO Funds

Cape Girardeau-based technology incubator Codefi launched a first-of-its-kind regional venture investment solution Thursday, April 18.

Innovate SOMO Funds combine a not-for-profit fund backed by charitable contributions and a for-profit backed by limited partners. These combine to invest in startups across Southern Missouri.

“Tech ecosystems beyond the major financial centers are often starved for the type of early-stage, risk-tolerant capital and comprehensive support required to translate great ideas into sustainable, job-creating enterprises,” Codefi president and chief executive officer James Stapleton said in a news release. “These funds are specifically designed to catalyze opportunity in these overlooked geographies, where there is tremendous philanthropy and interest in economic diversity and growth.”

The $2 million in Innovate SOMO Funds will go toward high-growth potential software in pre-seed or seed stages. According to the news release, most investments will likely range from $50,000 to $200,000 and will be deployed within the next three years.

Initial investment is being led by the Springfiel-based Hatch Foundation and an anonymous donor from Cape Girardeau.

The Bank of Missouri, headquartered in Perryville, committed $100,000 to help offset administrative and management costs of the funds for the first two years.

Innovate SOMO Funds are the latest development from the Southern Missouri Innovation Network, or Innovate SOMO, which is a collaboration between Codefi and Missouri State University’s efactory.

“We’re really excited to be working with Codefi and the other partners to launch Innovate SOMO Funds to expand upon the work we began nearly 10 years ago,” said Allen Kunkel, associate vice president for economic development at Missouri State University. “We appreciate the support of donors who allowed us to launch our accelerator program, the region’s first program of its type, and those investors supporting the new funds.”

Do you want more business news? Check out B Magazine, and the B Magazine email newsletter. Go to www.semissourian.com/newsletters to find out more.