The Invest Georgia Fund

The Invest Georgia Fund is a state-backed fund-of-funds created to increase access to capital for innovative, high-growth Georgia businesses. Those businesses, in turn, create and grow jobs across Georgia's innovation sectors. It is an evergreen investment fund intended to complement the state's other economic expansion initiatives.

Why the program exists

Early- and growth-stage innovation companies often face a capital-access gap between startup and expansion. Invest Georgia was created as a long-term strategy to improve access to capital for Georgia small businesses and entrepreneurs.

With the program in place, more capital stays and is invested in Georgia, helping companies grow and remain in the state. This strengthens Georgia’s intellectual capital, creates more opportunities for job growth, and expands the state’s tax base.

How the Invest Georgia fund works

Invest Georgia uses a fund-of-funds model, meaning the state does not invest directly in individual businesses. Instead, capital is invested through qualified venture capital funds.

A third-party administrator evaluates venture funds focused on early-stage or growth-stage investments and presents qualified funds to the Invest Georgia Board for approval. The venture fund managers then conduct their own due diligence and select the individual businesses in which they invest.

Investment returns flow back to Invest Georgia. The Fund receives its original capital plus its share of investment profits, and those proceeds are reinvested to support future investments.

Venture Fund Qualifications

Venture funds considered for Invest Georgia investment must meet requirements related to their experience, investment strategy and connection to Georgia.

Growth-stage venture funds must have:

  • at least two principals directing investments
  • a principal office and majority of employees in Georgia.

Early-stage capital funds must have at least one principal directing investments.

Qualifying fund principals must have at least five years of relevant venture capital, angel capital or private equity experience. Funds must primarily invest in Georgia-domiciled companies or have managers with an office in Georgia.

Their investment strategy must focus on transformational economic-development outcomes through investment in high-growth-potential businesses.

Fund principals must demonstrate the ability to:

  • lead investment rounds
  • advise and mentor entrepreneurs
  • facilitate follow-on investment.

The third-party administrator also considers management structure, principals' investment experience, industry reputation, ability to attract co-investment and syndicate investments, relevant knowledge and capabilities, and tenure/turnover of senior investment professionals.

Investment Parameters

The state program's allocation model is described as:

  • 40% early-stage funds
  • 60% growth-stage funds

Private-capital match requirements:

  • Growth funds: 50%
  • Early-stage funds: 10%

Return structure:

  • 100% return of state capital
  • industry-standard 80/20 VC profit share thereafter
  • distributions reinvested through the program.

Select Sectors

Technology

  • AI
  • Cybersecurity
  • Fintech
  • AgTech
  • Logistics/Supply Chain
  • Alternative Energy
  • Robotics/Automation

Healthcare

  • Digital Health & Wellness
  • Health IT
  • Healthcare Services
  • Life Sciences/Medical Devices