Criteria and Eligibility
SCRA Member Companies may be considered for investment from SC Launch Inc. when there is alignment among the SCRA Relationship Manager, an SC Launch Inc. team member, and the Member Company that the company is ready to begin investment diligence.
When a company is recommended to begin diligence, the Member Company will receive an email or verbal recommendation from the SCRA Relationship Manager or SC Launch Inc. team member, along with SC Launch Inc.’s diligence checklist and next steps.
If you are interested in seeking an investment from SC Launch Inc., please carefully review our investment criteria and process below.
Criteria
Prior to an SC Launch Inc. investment, companies have typically secured capital or support from founders, principals, friends and family, customers, strategic partners, angel investors, or other early funding sources.
SC Launch Inc. invests in high-growth technology companies with the potential to create economic impact in South Carolina. Investments may include seed-stage, early-stage, and later-stage opportunities, including Series A and Series B rounds.
SC Launch Inc. investments are determined on a case-by-case basis and may vary based on company stage, financing needs, round structure, diligence findings, available funding, and required approvals. Historically, the average SC Launch Inc. investment has been approximately $300,000; however, actual investment amounts may be higher or lower.
SC Launch Inc. may invest through convertible notes, SAFEs, preferred equity, or other investment structures, depending on the company, round, terms, and applicable approvals. Investment consideration does not guarantee funding, and all investments remain subject to diligence, approval by the appropriate decision-making body, legal documentation, and available capital.
Companies receiving an investment typically exhibit the following characteristics:
- The company’s principal office must be located in South Carolina, or at least 51% of payroll to employees must be within the state.
- The company is addressing a large and rapidly expanding market.
- The company has innovative technology with strong commercialization potential.
- The company has durable intellectual property protection or a defensible technology position, which may include patents, trademarks, trade secrets, copyrights, proprietary know-how, or other competitive advantages.
- The company has a persuasive strategy with a strong and sustainable competitive advantage.
- The company has a viable business plan with compelling but realistic growth potential.
- The company has experienced team members, at least one full-time member of management, and appropriate advisors, board members, or strategic support.
- The company has demonstrated potential to attract follow-on funding.
- The company has a reasonable valuation and the potential for meaningful financial return.
- The company has reasonable potential to support South Carolina’s innovation economy through job creation, commercialization activity, follow-on capital, or other economic impact.
Investment Diligence Process
The investment diligence process begins when there is agreement among the SCRA Relationship Manager, an SC Launch Inc. team member, and the Member Company that the company is ready to proceed. At that point, the Member Company will receive SC Launch Inc.’s diligence checklist and next steps by email or through a verbal recommendation from the SCRA Relationship Manager or SC Launch Inc. team member.
Diligence may include review of the company’s market opportunity, competitive landscape, technology development plan, intellectual property, regulatory considerations, business model, team, hiring plan, corporate structure, financials, capitalization table, current and prior financing activity, customer traction, go-to-market strategy, and potential for follow-on funding.
As part of the diligence process, SC Launch Inc. may request additional materials, schedule follow-up discussions, review third-party documentation, and evaluate the company’s fit with SC Launch Inc.’s investment criteria and available funding priorities.
Following diligence, companies may be invited to advance through additional stages of review. Advancement through diligence or review does not guarantee an investment. Any investment remains subject to final approval, legal documentation, and available capital.
SC Launch Inc. provides ongoing support after an initial investment. Your SCRA Relationship Manager and the SC Launch Inc. team can provide guidance on investor strategy, future financing readiness, and potential pathways toward additional funding, including later-stage rounds.
