Greater Winston-Salem Inc. is launching a new startup investment fund to drive growth and innovation in Winston-Salem and Forsyth County’s entrepreneurial ecosystem.
The Winston-Salem Pledge Roundtable (WSPR) Fund will invest seed-stage capital in local startups that are scaling and, although not required, have a focus in industry sectors in which Winston-Salem has expertise. These include health care, technology, data analytics, aviation, virtual reality and more. Startups not based in Winston-Salem are eligible but must commit to relocating to the city.
Technology and high-growth entrepreneurship is a strategic industry sector for Winston-Salem’s and Forsyth County’s long-term economic development. The entrepreneurial ecosystem is supported by 30-plus local organizations and has fostered the growth of dozens of startups that have already attracted more than $25 million in capital investments, according to the accelerator Winston Starts.
The WSPR fund is designed to offer a complementary option within the local ecosystem that will further attract and support startup development.
“Winston-Salem has been identified nationally as one of the best cities to start and grow a business,” said Greater Winston-Salem Inc. President and CEO Mark Owens. “We are home to one of the world’s leading innovation districts and have built a network of entrepreneurial resources that support startups along the entire continuum of growth.
WSPR will operate as a pledge fund, a type of investment vehicle in which members make a non-binding pledge to contribute capital to a series of investments. Unlike a blind pool, contributors to a pledge fund reserve the right to review each investment prior to contributing. Members are not required to invest the amount of capital that they have pledged, but they must meet a minimum investment over a three-year term.
Participants younger than 40 must invest at least $30,000 over the three-year term of the fund, while those 40 and older must invest a minimum of $60,000. Investors can choose to participate again at the end of the three-year term. Membership in the fund is contingent upon meeting the accreditation requirements set forth by the Securities Act of 1933.
“Startups create jobs, attract talent and invest in the local community,” Owens said. “We believe this investment fund can help to plant the seeds that will help the next big ideas grow right here in Winston-Salem.”
Those interested in applying to join the fund or startups seeking an investment can email Clay Johnson at cjohnson@winstonsalem.com. The fund will accept new members through June 30.
