The Kentucky Economic Development Finance Authority today granted to UpTech Fund II, LLC $800,000 in state income tax credits, pursuant to the Kentucky Investment Fund Act. UpTech Fund II, the pre-seed fund connected with the UpTech, Inc. accelerator program in Covington, is in the process of raising a $2,000,000 fund to make investments in the next four to five UpTech classes.
With this grant, qualified investments under the Investment Fund Act will generate for the UpTech Fund a 40% tax credit, which will be passed on to investors in the Fund. Trey Tapke, the volunteer fund manager for the UpTech Fund, made the presentation to the KEDFA Board today in Frankfort.
“UpTech has built a fantastic business accelerator, allowing UpTech Fund I to invest in 22 companies over the first three classes. The tax credit is a critical element in allowing that to happen, and KEDFA sees that,” said Tapke.
The UpTech, Inc. board is in the process of selecting its fourth class of startup companies, which will start with the program in September. JB Woodruff, UpTech Program Director, says he likes what is seeing from applicants so far.
“We are seeing some excellent quality in this year’s applicants, which have come from across the country and four continents. We’re very excited about how this year’s class is shaping up.”
Companies selected for the UpTech program receive from the UpTech Fund an initial investment of $20,000. The Fund then sets three milestone events for each company, each of which results in additional funding of $10,000 for a total of $50,000. UpTech also brings to each company mentors, attorneys, accountants, training from the entrepreneurship community, and assistance from the Kentucky Innovation Network office in Covington.