Shyla Sheppard, Associate, NM Community Capital
Looking for additional funding to launch or grow your business? If you have the experience, skills and passion, there are a number of potential sources of private equity capital available in New Mexico. Equity capital sources can be broadly placed into two categories: Angel investors and institutional equity investors. Determining which source to pursue is largely a function of three key factors: 1) industry focus, 2) business stage, and 3) amount of money you are raising.
An angel is an accredited investor who invests his or her own, personal capital in early-stage business ventures. Angels are often the bridge from the self-funded stage of the business to the point where a venture capitalist would be interested in investing. An increasing number of angel investors are organizing themselves into angel networks or angel groups.
The New Mexico Angels prefer seed and early stage investments. They consider themselves generalists and will consider investing in a wide range of industries. Initially, they were focused on technology but they now consider non-technology ventures. Initial investment amount ranges from $100,000 to $500,000.
Institutional Equity Investors
The Altira Group focuses on energy technology in early or expansion stages, although they will evaluate previously funded and later stage opportunities on a selective basis. Initial investment amount ranges from $1 million to $10 million.
Flywheel Ventures focuses on information technology, physical sciences and clean technology in seed and early stage ventures. They target innovations arising out of the region’s research universities, R&D organizations, and national laboratories. Flywheel also manages the New Mexico Gap Fund. Initial investment amount ranges from $100,000 to $1 million.
International Venture Fund/Invencor focuses on technology, preferring co-investment opportunities. They favor seed and early stage ventures and are typically one of the first venture investors in a company. Initial investment amount varies.
ITU Ventures focuses on technology ventures in early stage or seed stage. They target businesses emerging from the leading universities, research institutions and corporations. Initial investment amount varies.
Mesa Capital Partners focuses on manufacturing and service companies in underserved industries and locations. They prefer early stage ventures. Initial investment amount ranges from $500,000 to $2 million.
New Mexico Community Capital invests in under-served areas and industries in New Mexico to achieve both financial and social returns. They do not focus on a specific industry and they prefer later stage ventures or those in expansion. Initial investment amount ranges from $500,000 to $1 million.
Psilos Group focuses on healthcare companies that improve quality while reducing healthcare costs and advancing the alignment of payer, patient and provider incentives. They prefer early stage ventures or those in expansion. Initial investment amount ranges from $2 million to $6 million.
Sun Mountain Capital manages a $60 million state investment fund. They look for co-investment opportunities and do not have an industry focus. They prefer early stage or start up ventures or those in expansion. Initial investment amount ranges from $300,000 to $10 million.
Tullis-Dickerson and Company focuses on healthcare and has a national and international presence. They prefer early stage or start-up ventures or those in expansion. Initial investment amount ranges from $500,000 to $10 million.
Verge focuses on technology in New Mexico, preferring seed stage ventures. Initial investment amount ranges from $100,000 to $750,000.
Village Ventures focuses on opportunities in emerging domestic geographies in consumer media and retail, healthcare, and financial services. They prefer seed and early stage ventures. Initial investment amount ranges from $500,000 to $1.5 million.
vSpring Capital focuses on technology – biotechnology, life sciences and information management – in seed, start-up or early stage, although they will invest in later stage companies under special circumstances. Initial investment amount ranges from $2 million to $3 million, although investments can be as small as $250,000 or as much as $5 million.
Epic Ventures, formerly Wasatch Venture Fund focuses on all sectors of technology in early stage development. Their new name reflects the organization’s evolution from a local Utah firm to a growing regional and national fund. Initial investment amount varies.
For definitions of the various stages of business development, see the glossary on the Finance New Mexico website.
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