Delaware Accelerator And Seed Capital Program

The Delaware Division of Small Business is seeking qualified organizations and investment funds to manage the Delaware Accelerator and Seed Capital Program, a State Small Business Credit Initiative (SSBCI) designed to support early-stage startups and entrepreneurial development. The Request for Proposals (RFP) seeks professional services to establish an accelerator model that will provide structured services and concept-stage capital to entrepreneurs, with a focus on high-growth potential companies. Proposers must demonstrate expertise in early-stage investments, accelerator programs, and familiarity with Delaware's entrepreneurial ecosystem. The program requires fund managers to evaluate and select investment opportunities, develop strategic operating plans, conduct outreach, and manage investment portfolios while ensuring compliance with program guidelines. Key deliverables include tracking portfolio company metrics, managing investments, and reporting on economic impact. The RFP timeline includes a questions deadline of April 21, 2023, with proposals due May 31, 2023, at 4:00 PM local time, and an estimated award notification in August 2023. The contract term is four years with two optional one-year extensions.

The procurement has specific set-aside designations and restrictions, prioritizing businesses owned by socially and economically disadvantaged individuals (SEDI) and companies located in underserved areas. At least 90% of investments must target Delaware-based companies, with a particular focus on target industries including biotech/life sciences, advanced materials, IT/enterprise tech, fintech, and agtech. Approximately $7.5 million in SSBCI funds will be allocated, with a maximum of $2.5 million awarded to any single accelerator program. The program requires a 1:1 private sector capital match at the investment level, with management fees capped at 4% of the SSBCI contribution. Non-profit funds can be considered as private sector match if used for company investments. The program aims to leverage early-stage investments that can ultimately raise at least a 10:1 ratio of private capital over a 10-year period. Selected fund managers will be expected to provide returns to the State of Delaware on a pari passu basis, with 96% of SSBCI capital required for direct investments in companies and 4% allowed for program support.