SC Launch Inc. Investment Program

Program Name: SC Launch Inc. - SCRA Member Company Investment Program

Geographic Scope: South Carolina

Background: SC Launch Inc. is SCRA's venture capital investment arm providing seed and early-stage funding to innovative South Carolina companies. The program has deployed $3B in follow-on funding to portfolio companies since inception in 2006.

Investment Focus:

• First, second, and/or third rounds of seed-stage capital
• Convertible loans or equity investments
• Later-stage investments (Series A & B rounds) also considered

Financing Amounts: Typically up to $200,000 or more per round; may include matching requirements

Location Requirement (Mandatory):

• Principal office located in South Carolina, OR
• 51% of payroll to employees within the state

Business Characteristics:

• Large, rapidly expanding market
• Innovative technology that can be commercialized
• Durable intellectual property protection (patents, trademarks, trade secrets, copyrights)
• Persuasive strategy with strong, sustainable competitive advantage
• Viable business plan with compelling but realistic growth potential
• Experienced team with at least one full-time management member and board of advisors
• High potential to attract follow-on funding
• Reasonable valuation and significant financial return potential
• Reasonable potential for innovation economy job creation

Due Diligence Process:

• Begins upon execution of letter of intent and term sheet
• Includes: competitive analysis, technology development plan, regulatory considerations, IP review, hiring plan, corporate structure, financial analysis, concurrent investment details, and marketing strategy

Post-Investment Support:

• SC Launch Inc. provides ongoing support after initial funding
• Investment managers provide guidance on investor strategy and long-term funding toward Series A or B rounds

How to Apply:

• SCRA Member Companies are considered for investment upon recommendation from their investment manager
• Applications directed by SC Launch Inc. executive director

Application Process for SC Launch Inc. Investment

Eligibility Screening:

1. Company must be an SCRA Member Company
2. Application requires recommendation from assigned investment manager
3. Applications directed by SC Launch Inc. executive director

Initial Requirements:

• South Carolina Location Requirement: Principal office in SC or 51% of payroll within the state
• Prior Investment: Typically, principals, family, and friends should have already invested before seeking SC Launch Inc. capital
• Investment Stage: Company should be seeking first, second, third round seed capital, or later-stage (Series A/B)

Application Materials:
Applications should address:

1. Competitive analysis
2. Technology development plan
3. Regulatory considerations
4. Intellectual property details (patents, trademarks, trade secrets, copyrights)
5. Hiring plan
6. Corporate structure
7. Financial projections and current financials
8. Details of any concurrent investments underway
9. Marketing strategy and market demand
10. Valuation and financial return potential
11. Job creation projections

Process Steps:

1. Work with assigned investment manager (for SCRA Members)
2. Develop letter of intent and term sheet
3. Due diligence review by SC Launch Inc.
4. Investment decision
5. Ongoing post-investment support from investment manager

Next Steps:
For non-SCRA members seeking to access SC Launch Inc. funding:

1. Apply for SCRA membership
2. Request assignment of investment manager
3. Work with manager to develop investment proposal
4. Submit comprehensive business plan and supporting materials