Startup America to Expand Capital and Mentoring Services Available to Entrepreneurs

The White House has announced a new public/private effort aimed at expanding capital and mentoring services to support US entrepreneurs.  Startup America, which has already received $400 million in private commitments, will expand a number of federal programs and create a nationwide alliance of private sector partners to provide entrepreneurial support resources.  

The administration plans to commit $2 billion through a variety of programs to encourage private sector investments in early-stage and potentially high-growth companies over the next five years. The initiative will include programs such as the Small Business Administration’s Early-Stage Innovation Fund which will provide a 1:1 match to private capital raised by early-stage and seed funds.  Other programs will encourage venture formation efforts through proof of concept centers focused on cleantech, environmental sustainability and regional economic development.  Known as the i6 Challenge, this program is meant to encourage regional efforts that bring together corporate, university, nonprofit and foundation stakeholders. 

Startup America also includes the Startup Partnership, an alliance of corporations, seasoned entrepreneurs, universities, foundations and other groups to expand entrepreneurial education and mentoring in order to enhance US competitiveness.  Steve Case, co-founder of AOL and chairman of the Case Foundation, will chair this group and Carl Schramm, CEO of the Kauffman Foundation, will serve as a founding board member.  Intel and IBM have committed $200 million and $150 million respectively to help fund capital and mentoring efforts. HP and Facebook have also announced they will join the partnership.