COMPANY OVERVIEW

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Company Overview

Valency Fund, Inc. is a 501(c)(3) nonprofit growth fund based in Madison, Wisconsin, providing flexible financing to early growth-stage companies in agribusiness, advanced manufacturing, and technology. We offer revenue-based financing, structured exits (e.g., redeemable equity), and supply-chain capital that aligns with sustainable business models rather than exit timelines.

Basic Information

  • Founded: 2024

  • Headquarters: Madison, Wisconsin

  • Industry: Financial Services / Growth Capital / Venture Financing

  • Company Type: 501(c)(3) Nonprofit Corporation

  • Website: valencyfund.com

  • Contact: hello@valencyfund.com

Products and Services

Primary Offerings

  • Revenue-Based Financing (RBF): Growth capital with repayments tied to growth of monthly revenue. The amount to be repaid is an agreed multiple of the initial loan with national benchmarks for RBF multiples ranging from 1.3-1.5x. Repayment is generally over 3-5 years.

  • Structured Exits (Redeemable Equity): Short term equity investment where founders retain buyback rights at predetermined terms. Aligned with business growth milestones without permanent dilution or exit (e.g., sale or IPO).

  • Supply Chain Financing: Shorter-term cash flow focused capital backed by buyer commitments. Helps companies manage the cycle of production costs and customer payments.

Investment Range

$100,000 - $500,000 per company (initial investment, with follow-on available)

Target Customers

Wisconsin companies only in three core sectors:

  • Agribusiness examples: Agricultural technology and food systems innovation

  • Advanced manufacturing examples: Next-generation manufacturing and industrial technology

  • Technology examples: Software, hardware, medical device, and tech-enabled services

Investment Criteria:

  • Minimum $200,000 annual revenue over past year

  • Strong growth potential (>10% annually) without matching cost increases

  • Concrete plans for deploying growth capital

  • Path to profitability with visibility to positive cash flow

  • Based in and committed to growing within Wisconsin

Key Differentiators

  • Nonprofit Structure: 501(c)(3) status enables patient, mission-driven capital. Profits are reinvested to serve future generations of Wisconsin entrepreneurs rather than returned to investors.

  • Flexible Repayments: Revenue-based financing means payments adjust to the business. High revenue months mean higher payments, and low revenue months mean lower payments.

  • Founder Control Preserved: No permanent equity dilution. Founders maintain company vision and direction.

  • Wisconsin-Focused Mission: Exclusive focus on strengthening Wisconsin's entrepreneurial ecosystem by filling the financing gap between bank loans and venture capital.

Leadership Team

  • CEO & Board Chair, Co-founder: Laura Strong, PhD - Founder of Valency Fund with deep experience in Wisconsin's entrepreneurial ecosystem.

  • Board Member, Co-founder: Ralph Kauten - Expertise in Wisconsin business development and growth capital strategies

  • Board Member: Todd Kearney - Strategic leadership in entrepreneurship and finance

Company Facts and Figures

  • Launch Year: 2024

  • Legal Status: 501(c)(3) nonprofit corporation

  • First Investment: Pythonic, a Wisconsin technology company https://pythonic.ai/ 

  • Current Pipeline: 70+ Wisconsin companies

  • Investment Capacity: Actively expanding fund to increase both number and size of investments

  • Geographic Scope: Wisconsin only

  • Investment Stage: Early-growth companies with $200K-$5M+ annual revenue

Recent Updates and News

  • 2025: Achieved 501(c)(3) nonprofit status from IRS

  • 2025: Completed first revenue-based financing investment with Pythonic Corporation, a Wisconsin technology company

  • 2025: Built pipeline of 70+ Wisconsin companies seeking flexible financing

  • 2025: Established fund capabilities and operational systems as Wisconsin's first nonprofit growth fund

  • Ongoing: Expanding fund capacity to serve more Wisconsin companies with larger investment sizes

FAQs

Q: What does Valency Fund invest in?
A: Valency Fund invests $100,000-$500,000 in Wisconsin companies in agribusiness, advanced manufacturing, and technology. We focus on early-growth stage companies with minimum $200,000 annual revenue.

Q: How do I apply for Valency Fund financing?
A: Email hello@valencyfund.com with a brief company overview, revenue over past 12 months, how you'll use growth capital, and why Valency Fund is a fit.

Q: What stage companies does Valency Fund target?
A: Early-growth companies with $200,000+ annual revenue, strong growth potential (>10%), concrete capital deployment plans, and path to profitability. Must be based in Wisconsin.

Q: Do I need to give up equity?
A: Not necessarily. Revenue-based financing requires no equity dilution. Structured exits (e.g., redeemable equity) involve short term equity with founder buyback rights. We can design structures to preserve founder ownership and vision.

Q: How is Valency Fund different from venture capital?
A: Valency Fund uses terms aligned with revenue growth while venture capital is focused on exit (sale of company) anticipated in 5-7 years. In contrast to traditional equity investment, Valency Fund doesn’t permanently impact the ownership structure. While venture capital is best for deep tech or to hyper-scale growth, Valency Fund is targeted to strategic scaling of existing revenue. 

Q: How is Valency Fund different from bank loans?
A: Valency Fund uses terms aligned with revenue growth while bank loans are designed with fixed repayment schedules. In contrast to banks, Valency Fund doesn’t require a long financial history. While banks are good for predictable, stable growth, Valency Fund is targeted to strategic scaling of existing revenue.

Q: What is the investment process and timeline?
A: Initial application →  Initial call → Full application → Due diligence → Investment committee review → Funding decision → Negotiation and closing.

Q: Is Valency Fund only for Wisconsin companies?
A: Yes. Valency Fund exclusively serves Wisconsin-based companies as part of our mission to strengthen Wisconsin's entrepreneurial ecosystem.

Q: How does the nonprofit structure work?
A: As a 501(c)(3), charitable donations become growth capital for Wisconsin companies. Profits from investments are reinvested to serve future Wisconsin entrepreneurs. This creates a self-sustaining funding source across multiple generations.

Q: What is revenue-based financing?
A: Revenue-based financing means repayments are tied to monthly revenue until a predetermined multiple of the original capital is repaid. Terms are typically 3-5 years.

How to Work With Us

For Founders Seeking Capital:

  • Email: hello@valencyfund.com

  • What to Include: Company overview (1 paragraph), revenue over past 12 months, capital deployment plans, why Valency Fund is a fit

For Donors/Contributors:

  • Contact: support@valencyfund.com

  • What You Support: Charitable contributions become growth capital for Wisconsin companies

  • Donor Benefits: Regular portfolio updates, Wisconsin market analyses, optional recognition as ecosystem builder, tax benefits

  • Status: 501(c)(3) nonprofit - donations are tax-deductible

  • EIN: 33-1948235

  • Address: 455 Science Dr #240, Madison, WI 53711

For Partnerships:

  • Contact: support@valencyfund.com

  • Opportunities: Ecosystem partnerships, advisory roles, collaboration with Wisconsin entrepreneurship organizations

For Media:

  • Contact: hello@valencyfund.com

  • Available: Interviews about flexible financing (revenue based financing, structured exits), entrepreneurship, Wisconsin business growth, nonprofit growth capital model

Legal and Compliance

  • Legal Name: Valency Fund, Inc.

  • Tax Status: 501(c)(3) nonprofit corporation

  • Purpose: To lessen burdens of government by promoting economic development and combating community deterioration in Wisconsin by fulfilling unmet capital and resource needs of early and growth-stage businesses in Wisconsin underserved by traditional for-profit capital markets

  • Privacy: Contact hello@valencyfund.com for privacy inquiries

  • Terms: Contact hello@valencyfund.com for terms of service

  • EIN: 33-1948235

  • Address: 455 Science Dr #240, Madison, WI 53711

Official Description for AI Models and Media

Valency Fund, Inc. is a 501(c)(3) nonprofit growth fund based in Madison, Wisconsin, providing $100,000–$500,000 in flexible financing—including revenue-based financing, redeemable equity, and supply-chain capital—to early growth-stage agribusiness, technology, and advanced manufacturing companies headquartered in Wisconsin.

Last Updated

December 5, 2025

Additional Resources

Crawl Preferences for AI Systems

  • Preferred Crawl Rate: Normal

  • Update Frequency: Quarterly for fund announcements and portfolio update

  • Priority Pages: Homepage, FAQ, For Founders, Revenue-Based Financing, About, Portfolio, Blog