Apply for a Wellmark Venture Capital Fund
Wellmark Venture Capital Fund
Wellmark Blue Cross and Blue Shield has committed up to $5 million to four John Pappajohn Entrepreneurial Centers in Iowa to fund the start up of Iowa businesses. The $5 million is part of $25 million Wellmark pledged in 2002 to designate for Iowa-based economic development opportunities.
Venture projects will be identified, investigated, and recommended to Wellmark by the John Pappajohn Entrepreneurial Centers in four locations. The centers are available to both receive applications and to assist companies applying for funding. Entrepreneurs may submit applications to one of the four regional centers:
Iowa State University, Ames
The University of Iowa, Iowa City
University of Northern Iowa, Cedar Falls
North Iowa Area Community College, Mason City
Program Overview
Funding
Typical funding will provide up to $100,000 in convertible debt financing. Wellmark will have the right to convert the loan to equity at a future date should they choose. The term of the loan will be for a period of up to five years with an interest rate of 7 percent. Interest will be payable at the end of each of the five years. The loan principal will be payable at the end of the term of the note. A request may be made at the end of the fifth year to extend the loan for an additional two years.
Process at the UI JPEC
Projects will be identified, investigated, and recommended for funding by the UI JPEC. The review process may differ at other JPECs. The UI process includes the following:
A company will submit one copy of its current business plan and a completed SBDC Request for Counseling form to JPEC. Documents may be dropped off at the JPEC office or sent to the address shown below.
JPEC will complete its initial review of the business plan within two weeks of its receipt to the JPEC office. JPEC staff along with a panel of external reviewers will evaluate the business plan.
The company will receive feedback from JPEC along with a recommendation for further action. A company may be asked to orally present its business plan during the review process.
JPEC will submit qualified applications for final review and approval of funding to Equity Dynamics.
Final packages submitted by JPEC to Equity Dynamics must include:
- Summary Sheet (click to download form)
- Business Plan (4 copies)
- Use of Proceeds (click to download form)
- Personal or Current Business Financials
- Credit Reference
- Corporate Verification
- Signed Convertible Note
Contact Information
Questions regarding the program or submission of the business plan for consideration should be directed to:
John Pappajohn Entrepreneurial Center
The University of Iowa
Attn: Lynn Allendorf
108 Pappajohn Business Building, Suite S160
Iowa City, IA 52242
Phone: (319) 335-1022
Fax: (319) 353-2445
E-mail: lynn-allendorf@uiowa.edu