Faculty & Entrepreneurs
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 startup 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 by Pappajohn Centers in four locations at The University of Iowa, University of Northern Iowa, Iowa State University and North Iowa Area Community College (NIACC) to Equity Dynamics. Equity Dynamics, at no cost to Wellmark, will further review the recommended projects, perform the necessary financial due diligence and, if appropriate, approve funding.
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.
Qualifications:
Applicant company must be an Iowa based for profit corporation.
Geographic Coverage:
Companies located in the following counties should submit applications to the John Pappajohn Entrepreneurial Center (JPEC) at The University of Iowa: Appanoose, Benton, Cedar, Clinton, Davis, Des Moines, Henry, Iowa, Jackson, Jefferson, Johnson, Jones, Keokuk, Lee, Linn, Louisa, Lucas, Mahaska, Monroe, Muscatine, Powesheik, Scott, Van Buren, Wapello, Washington, and Wayne. Companies outside of this region should contact the nearest JPEC office at either Iowa State University, the University of Northern Iowa, or North Iowa Area Community College.
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 JPEC's. The UI process includes the following:
- A company will submit one copy of their 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 their 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
- Upon final approval, Wellmark will issue a check to the company, which will be delivered through JPEC.
Evaluation Criteria:
- Level of impact - based upon factors such as jobs created, quality of jobs created, infrastructure developed (buildings and equipment), and other factors that provide growth in the Iowa economy.
- Management team - experience and fit.
- Uniqueness of project and technology.
- Business plan - demonstrates acceptable probability of success with reasonable risk factors.
- Owner investment in project.
- Leverage - ability to match Wellmark investment with private equity capital or other sources of funding.
(At their discretion, individual Pappajohn Centers may impose additional criteria based on the specific dynamics of the region it serves.)
Other Requirements:
Approved companies will be required to provide semi-annual reports of activities and progress to JPEC. Required information includes: current (year-to-date) income statement, balance sheet and cash position; projected cash flow for next 12 months; description of goals for next six months; evidence of use of proceeds; and verification that all tax returns have been filed. JPEC will compile the information from all active accounts and forward to Wellmark noting any concerns.
Contact Information:
Questions regarding the program or submission of the business plan for consideration should be directed to:
The University of Iowa
John Pappajohn Entrepreneurial Center
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
In addition to the UI JPEC and SBDC, the following SBDC offices in the region are also available to assist in preparing the business plan:
| Kirkwood Comm. College SBDC Steve Sprague, Director Marion, IA 52302 319.377.8256 sspragu@kirkwood.cc.ia.us |
Eastern Iowa SBDC Ann Hutchinson Davenport, IA 52801 563.336.3255 x3401 ahutchinson@eicc.edu |
Southeastern Comm. College SBDC |
Indian Hills Comm. College SBDC Bryan Ziegler, Director Ottumwa, IA 52501 641.683.5127 bziegler@ihcc.ia.us |
Other Locations: |
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| Iowa State University Pappajohn Center for Entrepreneurship Attn: Michael Upah 2501 North Loop Drive, Suite 1615 Ames, Iowa 50010 Phone 515.296.7828 Fax 515.296.6714 mjupah@iastate.edu |
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| University of Northern Iowa John Pappajohn Entrepreneurial Center Attn: Katherine Cota-Uyar Curris Business Building, Suite 5 Cedar Falls, Iowa 50614-0130 Phone 319.273.7350 Fax 319.273.7512 katherine.cota@uni.edu |
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| Northern Iowa Area Community College John Pappajohn Business & Entrepreneurial Center Attn: Tim Putnam 500 College Drive Mason City, Iowa 50401 Phone 641.422.4111 Fax 641.422.4129 putnatim@niacc.edu |
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