Maine Public & Private Business Finance & Venture Funding Sources

There are a growing number of public and private venture capital funding sources for Maine technology companies. The Finance Authority of Maine, along with Masthead Venture Partners has published a primer on venture capital as a resource for entrepreneurs This publication provides detailed information on what venture capital is, what it isn't, how venture capital investors work, how to approach venture capitalists, how to determine if you are ready for venture capital, and alternative sources of capital in Maine. Download the PDF Financing Bright Ideas - A Primer on Venture Capital in Maine.

The Borealis Fund, L.P.
114 N. Main Street, Suite 201
Concord, NH 03301
Phone: 603-226-4480
Fax: 603-226-4485
The Borealis Fund is a venture capital funding serving Northern New England. A Village Ventures affiliate, the fund targets a range of companies from start-up to growth stage and invests from $500,000 to $3,500,000 per company.

Brook Venture Fund II
301 Edgewater Place, Ste 425
Wakefield, MA 01880
Phone: 781-295-4000
Fax: 781-295-4007
Brook Venture Fund II targets expansion stage companies within the following fields: Medical Instrumentation and Software (including biotech), Information Technology, Enabling Chemistry and Optical Technologies (i.e., fiber optic, infrared, laser, and others). The target company should be generating sales and should be able to exhibit sustainable profitability within 18 months under a “base case” scenario. Brook Venture Fund II typically invests from $500,000 to $3,000,000.

CEI Ventures, Inc./CEI Community Ventures, Inc.
2 Portland Fish Pier, Suite 201
Portland, ME 04101
Phone: 772-5356
Fax: 772-5503
CEI Ventures Inc. and CEI Community Ventures, Inc. are both Maine-based venture capital funds which make equity investments of $500,000-$2,000,000 in growing companies showing the potential to generate above-average equity returns over a 5-7 year window while meeting social goals.

Flybridge Capital Partners
500 Boylston Street
18th Floor
Boston, MA 02116
Phone: 617-307-9292
Fax: 617-307-9293
By leveraging the Flybridge Capital Partners platform--an unparalleled combination of global, IT and BioIT market research, media and financing resources--Flybridge Capital Partners helps companies understand their markets better and penetrate them faster than their competition. Investment size ranges from $1 million to $3 million for startups and $3 million to $5 million for "emerging winners".

Little Diamond Island Enterprises
75 Pearl Street, Ste 209
Portland, ME 04101
Phone: 207-761-0717
Fax: 207-772-0385
Since 1993, Little Diamond Island Enterprises has made early-stage investments in technology companies, with a focus in the areas of software, computer services and data communications. Investment size ranges from $.5 million to $1.5 million.

Maine Investment Exchange (MIX)
120 Exchange Street
Portland, Maine 04112
Phone: 207-871-0234
Fax: 207-775-6716
The Maine Investment Exchange (MIX) was established to provide forums for qualified entrepreneurs seeking risk capital to make formal presentations to providers of risk capital. Although MIX cannot guarantee that successful investments are made, it provides an opportunity for entrepreneurs to meet potential investors.

Maine Merchant Bank
Two Monument Square
Portland, ME 04101
Phone: 207-772-8141
Fax: 207-761-4464
The Maine Merchant Bank invests in low to medium technology companies with identified brand name, product base and/or positive service reputation in their primary market(s); as well as, later stage companies with developed or soon to be developed proprietary technologies, products and/or services with exceptional growth potential. Investment size ranges from $250,000 to $1 million.

Maine Technology Institute
405 Water Street, Ste. 300
Gardiner, Maine 04345
Phone: (207) 582-4790
Fax: (207) 582-4772
The primary objective of MTI is to provide seed investment grants to private companies and research laboratories that will increase the level and the pace of research and development and create new jobs for Maine in the following seven targeted technology sectors: aquaculture and marine technology; advanced technologies for forestry and agriculture; biotechnology; composite materials technology; environmental technology; information technology; and precision manufacturing. Grants range from $10,000 early stage seed grants to $500,000 Development Awards, which may require payback under some circumstances. All awards are made through a competitive review process and require a minimum of 1:1 matching funds for project expenses. MESDA was actively involved in the creation of the Maine Technology Institute and was a primary factor for expanding this program's availability to all emerging technology sectors.

Masthead Venture Partners
Four Milk Street
Portland, ME 04101
Phone: 207-780-0905
Fax: 207-780-0913
Masthead Venture Partners invests in early stage information technology and biotechnology companies. Masthead seeks companies with a "disruptive" technological advantage, rapid growth potential and strong management teams. Masthead provides both capital and the active support of Masthead's partners, who have diverse operating, venture capital and Wall Street experience in high technology and healthcare companies. Initial investments typically range from $500,000 to $8,000,000.

MerchantBanc
MB Venture Partners, LP
Two Wall Street
Manchester, New Hampshire 03101
Phone: 603-623-5500
Fax: 603-623-3972
MerchantBanc offers an investment fund focused on opportunities in New England and has provided investment capital to rapidly growing businesses since 1992. During the past ten years, MerchantBanc has been the source for over $140 million of private capital. MerchantBanc invests in the range of $500,000 to $5 million.

North Atlantic Capital Corporation
2 City Center, 5th Floor
Portland, ME 04101
Phone: 207-772-4470
Fax: 207-772-3257
North Atlantic Capital is a late stage private equity firm that invests in established, growing businesses throughout the northeastern United States. They specialize in helping businesses with $3 million to $50 million in sales, get to the next level. Investment size ranges from $2 million to $5 million.

Rockwater Capital
22 Monument Square, Ste 504
Portland, ME 04101
Phone: 207-774-4461
Fax: 207-772-2227
Rockwater Capital Partners offers a private royalty based financing fund. They invest in companies with established, growing revenue streams and the potential to grow meaningfully through expansion and or acquisition. Investment size ranges from $1 million to $3 million.

Small Enterprise Growth Fund
PO Box 619
Augusta, ME 04332
Phone: (800) 228-3734
Fax: (207) 623-0095
The Small Enterprise Growth Fund was created to help small Maine businesses obtain patient capital. The Fund targets initial investments of up to $400,000 (reserving funds for follow-on rounds) in businesses with the potential for high growth and public benefit, including job creation. The business must be located in Maine and must obtain a co-investment in an amount at least equal to the investment from the Fund. The Fund seeks a reasonable risk-adjusted return on investment within a five to seven year period.

Finance Authority of Maine (FAME)

The Finance Authority of Maine (FAME) is Maine's public business finance agency. FAME supports start-up and expanding businesses by working closely with Maine banks to improve access to capital. FAME offers a wide array of programs, ranging from traditional loan guarantees for small and large businesses to tax credits for investments in dynamic manufacturing or export-related firms. FAME has also established taxable and tax-exempt bond financing programs that provide loans to creditworthy firms at very favorable rates and terms. Some of FAME's many programs designed to help start-up and expanding businesses are summarized here. For more comprehensive information, including eligibility criteria, please call 207-623-3263 or visit FAME’s Web site.

Commercial Loan Insurance Program

This program provides large business borrowers, who would otherwise have problems securing conventional loans, with access to capital. FAME can insure up to 90 percent of a commercial loan, not to exceed $7 million, for most types of business projects.

Export Financing Services

Working Capital Insurance from FAME provides additional security to lenders and encourages greater lending activity for international business ventures. Export Credit Umbrella Insurance, provided by the Export-Import Bank of the United States (Eximbank) and administered by FAME, reduces international credit risk and allows an exporter to offer credit terms to foreign buyers in a competitive market.

Maine Seed Capital Tax Credit Program

This program encourages the increased availability of risk equity to enterprises that bring capital into the State. It provides 30% tax credit for private investments of up to $200,000 per investor per eligible company. Eligible companies may receive up to $1,000,000 in investments; recent changes allow second round and venture fund investments in the same amounts.

Plus l Computer Loan Program.

This program provides lenders with loan insurance on an expedited basis for small businesses that need to borrow money to acquire and install computer equipment and software.

Regional Economic Development Revolving Loan Program

This program, administered by FAME, was capitalized with a $10-million bond issue approved by Maine voters in 1994. Under the program, FAME distributes $10 million to community, regional or statewide public sector or non-profit entities that will, in turn, loan the funds to eligible small business borrowers. Businesses may qualify for loans of up to $200,000 from the fund.

Small Business and Veterans’ Small Business Loan Insurance Program

This program is designed to help small businesses that cannot obtain conventional commercial financing. FAME can insure up to 90 percent of a small business loan, to a maximum insurance exposure of $1 million. If the borrower is an eligible wartime veteran, the authority may insure up to 100 percent of a loan of $75,000 or less, and up to 90 percent of a loan up to a maximum exposure of $1.1 million.

Small Enterprise Growth Fund - Maine's Venture Capital Fund

This program was created to provide Maine entrepreneurs with access to patient sources of venture capital. The Fund targets the needs of entrepreneurs with financial requirements of between $150,000 and $350,000. The fund provides loans that are convertible to equity to certain small business enterprises on flexible terms with other rights to be required based on relative risk. See contact information below.

Bond Financing Programs

FAME, using its authority to issue taxable and tax-exempt bonds, provides reduced-rate financing to large projects. Under the SMART-E Bond Programs, FAME issues tax-exempt bonds for manufacturing projects, which must meet eligibility requirements established under the Internal Revenue Code. The SMART Bond Program and Major Business Expansion Program offer reduced interest rates by using FAME's guarantee authority to put the strength of the State of Maine's credit rating behind financing for larger projects.