Venture capital fund seeks growing companies

BURLINGTON, Vt. (AP) — A venture capital firm from Portland, Maine, wants to invest in socially responsible companies in low-income communities of Vermont, Maine and New Hampshire.

CEI Community Ventures will give 12 to 15 businesses $100,000 to $500,000 each as part of the New Markets Venture Capital Fund, half funded by the U.S. Small Business Administration, said Michael Gurau, president of CEI Community Ventures.

Only one company has received funding from the new account — Juno Rising Inc. of Burlington. The maker of Isis-brand outdoor clothing for women had been based in a Colchester home when the owners heard about the new fund for startups.

"It's really hard to find venture capital money in this economy and even harder if you are a small startup like we are," said Carolyn Cooke, co-founder and chief executive.

The fund is available only in areas of the three states that need new jobs. Most Vermont counties — though only a few towns in each — are eligible.

Colchester was not on the list, so in December Juno moved to Burlington, which is on the list. The company received $200,000 from the fund, as well as $400,000 from its sister fund, Cooke said. Gurau used profits from that sister fund created several years ago to start the latest venture.

Gurau said he is looking for small companies with a potential for significant growth and at least two members on the executive team. The startup also has to have improved the business climate in a socially responsible way. For example, Juno Rising is operated by and for women.

Gurau hopes to spend the money over the next couple of years, and then start another fund.

For the latest fund, Gurau spent a year and a half raising more than $5 million from nonprofit organizations and other venture funds. The SBA is matching the money Gurau raised, said Kenneth A. Silvia, SBA's Vermont district director.

"What it will do is give companies that have a good idea and a good product the ability to take that product and that idea and grow on it and expand it and bring better jobs," Silvia said. "It is generally about creating a better economy in the community."