APPLY FOR FUNDING

InvestTN FAQs

Prior to submitting an application for funding, please read through the following frequently asked questions (FAQs) carefully.

Program Overview

InvestTN is a $70 million equity investment program administered by Launch Tennessee and funded by the U.S. Treasury’s State Small Business Credit Initiative (SSBCI) through Fund Tennessee. It supports early-stage, venture-scalable businesses and venture capital funds located in Tennessee.

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Fund Tennessee includes three programs:

  • InvestTN: Equity/venture investment (administered by LaunchTN)
  • LendTN: Loan capital (administered by TNECD)
  • AssistTN: Technical assistance for entrepreneurs (administered by TNECD)

Eligibility & Requirements

Eligible applicants include Tennessee-based early-stage companies with scalable business models and newly formed early-stage venture capital funds with a Tennessee presence or investment focus.

A business must be registered to do business in Tennessee with the Secretary of State and meet one of the following:

  1. 51% of employees are domiciled in Tennessee
  2. Headquarters facility under T.C.A. § 67-6-224
  3. The majority of senior management is domiciled in Tennessee

SEDI (Socially and Economically Disadvantaged Individuals) businesses are at least 51% owned and controlled by individuals meeting specific U.S. Treasury-defined criteria such as race, gender, veteran status, rural location, and more. At least 58% of InvestTN capital must support these businesses.

Investment Process

Submit an intake form. If your company aligns with the program, LaunchTN will guide you through the full application process. Review timelines vary based on application volume and completeness. For a more detailed overview of the application process, click the button below.

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No. Applications are accepted and reviewed on a rolling basis.

Strong applications demonstrate market viability, a scalable model, strong management, and compliance with InvestTN and SSBCI criteria. Incomplete applications will not be considered.

Startups: Investment decisions require a 3 of 4 majority vote by the InvestTN Investment Committee, which meets monthly on the last Wednesday of the month.

Yes. A minimum one-to-one private capital match is required. InvestTN is focused on catalytic investments, meaning we aim to help bring new investors into a round rather than matching capital that’s already been raised. Matching must be secured within 120 days of an InvestTN conditional commitment. 

*Note that investments from the founder, accelerators, incubators, crowdfunding platforms, AngelList syndicates, grant funding, loans, in-kind investments, and investments made in exchange for services or sweat equity do not qualify as a matching co-investment.

Funding Use & Terms

Funds must be used for business purposes only — not for speculative activity, tax repayment, or owner buyouts. Funds cannot support cannabis, gambling, pyramid sales, or lending-based business models.

Yes, but not often. Through the Growth Fund, InvestTN can lead rounds with initial investments of $250K to $3M.

InvestTN can lead or follow in deals, depending on the structure. If terms are already set, they will be evaluated as part of the decision process.

For Venture Capital Funds

Newly formed early-stage VC funds, ideally targeting $10M–$30M in fund size, are eligible. Sidecar funds may also qualify.

  • No standard management fee
  • Fund formation costs are not covered
  • 1.71% annual allowance for portfolio company support services
  • Must meet the one-to-one private match at the fund level
  • Capital may only be used for new investments — not into existing or warehoused companies

Compliance & Legal

Before receiving funds, applicants must certify compliance with SSBCI rules, including the use of proceeds, conflict of interest, and other applicable requirements (e.g., SEDI status).

InvestTN follows strict SSBCI COI guidelines. Any SSBCI insider, their family, or business partners cannot hold a financial interest in an applicant company prior to investment. A cap table review is required as part of the InvestTN due diligence process.

Who is an “SSBCI Insider”?
An SSBCI insider is defined as a person who, in the 12-month period preceding the date on which SSBCI support for a specific investment is closed or completed, held one of the following roles:

  • A manager or staff member of the jurisdiction’s SSBCI equity/venture capital program
  • A government official with direct oversight over the program
  • A board member of a jurisdiction-sponsored non-profit who had authority to vote on SSBCI investment decisions or authority over the employment/compensation of staff managing those decisions
  • A board member of an independent non-profit or for-profit entity operating an SSBCI VC program
  • A member of an investment committee that recommends or approves SSBCI investments


You can find the current InvestTN SSBCI Insider List below.

INSIDER LIST

SSBCI certifications

  • As a federally funded program, InvestTN and its portfolio companies must follow SSBCI guidelines. This form confirms that your company is eligible, the funds will be used for approved business purposes, and there are no disallowed conflicts of interest.


Conflict-of-interest policy

  • This agreement ensures that all InvestTN investments comply with federal SSBCI conflict-of-interest standards. It confirms that no individual connected to the program has a personal financial interest in your company, as required by U.S. Treasury regulations. 


Letter of intent (LOI)

  • The LOI outlines LaunchTN’s proposed investment amount and confirms our commitment, pending your successful one-to-one private capital match. It helps formalize the path to funding and ensures alignment on terms before legal documents are drafted.


Side letter agreement (covers use of funds, audit rights, and compliance)

  • These standard side letters establish key compliance and oversight terms required by LaunchTN’s SSBCI-backed investment. They help us protect taxpayer-backed capital while ensuring transparency and accountability from portfolio companies. They confirm: 
    • The company is a qualified Tennessee business using funds for approved purposes
    • Federal SSBCI compliance obligations are met, including use-of-proceeds and conflict-of-interest rules
    • LaunchTN’s rights to reporting, audits, and potential repurchase in cases of misuse, fraud, or breach
    • Consistent terms across deals, including pro rata rights and most-favored-nation protections

Quarterly and annual reports are required, covering financial performance and other data. Treasury may publish anonymized summaries of this information.

Additional Questions

InvestTN portfolio companies receive exclusive access to Portco Perks—a curated set of partner offers designed to support startup growth.

Offers include Amazon Web Services credits, discounts on day passes, meeting room bookings, and memberships at The Malin (Nashville), and a free day pass to 121 Tech Hub (Knoxville) among others.

Portfolio companies may contact info@launchtn.org for more info or to activate perks.

Yes. Eligible applicants may reapply later. If declined, feedback will be provided via email, but no individual meetings will be offered due to volume.

Yes. It’s encouraged to engage your current and prospective investors early, especially to help secure the required capital match.

FTEs = full-time employees + (part-time hours / 40)
Example: 100 full-time employees + 50 part-time at 20 hrs/week = 125 FTEs

The U.S. Treasury’sSSBCIProgram

InvestTN is funded by the federal State Small Business Credit Initiative (SSBCI 2.0) program and administered by Launch Tennessee, a public-private partnership that supports the state's entrepreneurial ecosystem by providing capital, commercialization, and connections. The fund is managed by Launch Tennessee’s Capital team.

  • The American Rescue Plan Act reauthorized and expanded the State Small Business Credit Initiative (SSBCI) via the U.S. Treasury to provide $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities as the country emerges from the pandemic.

  • SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities.

  • Who’s it for? For access to capital managed and distributed by Launch Tennessee, SSBCI funding is for startups and early-stage businesses that require venture capital or equity funding, as well as for SEDI-owned businesses.

  • Does my company qualify for InvestTN? Eligible companies have scalable business models, are located in Tennessee, and are well-suited for venture funding. In short, we are looking to invest in great companies with business models built to generate strong capital returns for our fund.

  • Companies that are ineligible include those that partake in speculative activities (oil, stock trading, etc.), earn more than half their revenue from lending activities, pyramid sales, activities prohibited by federal law (such as cannabis/marijuana), and gaming/gambling activities.

 

To learn more about the program, including comprehensive details on the guidelines and requirements, visit the SSBCI website.