Hawaii is committing $4.5 million to Startup Capital Ventures II, a Hawaii- and California-based fund that will provide investment capital to help Hawaii technology companies scale.
Hawaii is committing $4.5 million to Startup Capital Ventures II, a Hawaii- and California-based fund that will provide investment capital to help Hawaii technology companies scale.
The Hawaii Strategic Development Corporation announced Thursday the investment, which officials said is a significant milestone.
“The goal of the HI Growth Initiative is to build a continuum of financing for all phases of business development, from startup, to expansion, to growth,” said Lt. Gov. Shan Tsutsui, who spearheads the initiative. “The successful closing of the Startup Capital Ventures II fund establishes this continuum.”
The HI Growth Initiative, administered by HSDC, has already invested in Honolulu-based venture accelerator, Blue Startups, which provides pre-seed capital to startups, and Maui-based investment fund, mbloom Fund I, which provides expansion capital. These funds together with the University of Hawaii research commercialization fund, UPSIDE Fund II, create a pipeline of companies for prospective investments by Startup Capital Ventures, officials said.
“Startup Capital Ventures’ presence in Hawaii opens the door for other Mainland investors to consider investments here as they have an on-the-ground partner to help watch over their investments,” Department of Business, Economic Development and Tourism Director Richard Lim said. “Whereas Hawaii companies were once at a geographic disadvantage, Startup Capital Ventures is closing this gap and making investments here attractive for other investors.”