A Portland, Maine, venture capital firm is
looking to invest $10 million in and give away $3 million worth of
technical assistance to 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 onlyin areas of the three states that
need new jobs. Most Vermont counties -- though only a few towns in
each -- are eligible, Gurau said.
Colchester was not on the
list, so Juno moved to Burlington in December, which is on the list.
The company received $200,000 from this fund, as well as $400,000
from its sister fund, Cooke said. Gurau used profits from that
sister fund -- created several years ago -- to jump-start this
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, be it environmental
or beneficial to an underserved part of the population. For example,
Juno Rising is operated by and for women.
Gurau hoped to
spend the money over the next couple of years, and then start
another fund.
For this new fund, he spent a year and a half
raising $5 million from nonprofit organizations and other venture
funds to invest in companies, and $1.5 million for the grants. 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."
Juno Rising will use the
money for marketing, product development and other ways to increase
sales. The company has six employees and expects to double or even
triple its revenues over the next few years, Cooke said. She
declined to state revenues.
"This is a wonderful way to be
able to grow a small business into a larger one," Cooke said.
Conact Sue Robinson at 660-1852 or srobinso@bfp.burlingtonfreepress
.com New money
FUND: New Markets Venture Capital Fund
COMPANY: CEI Community Ventures PRESIDENT: Michael Gurau
HEADQUARTERS: Portland, Maine MONEY: $10 million in equity
funding; $3 million in technical assistance grants SPONSORS:
U.S. Small Business Administration, and local organizations
STATES ELIGIBLE: Maine, New Hampshire, Vermont FOR MORE
INFORMATION: http://www.ceicommunity/ ventures.com
