Delaware SSBCI venture capital, DASCP direct and DESVCP partner routes

Delaware has a direct route and a partner route

The distinction is who the state deals with. Under DASCP the company is the counterparty; under DESVCP a venture-capital partner is, and the startup's relationship is with that partner rather than with the Division.

That changes where a company should spend its effort. A DASCP conversation is a direct investment conversation with the state, while a DESVCP conversation starts with the venture partner that carries the state's capital.

DASCP follows the seed round

DASCP investments can be up to $1 million, and the program is intended for companies after they have completed a seed round. It is designed to come next rather than first, so a company still assembling its seed is early for it.

Companies generally must have 100 or fewer employees and a lead negotiator. Under the official description, companies that can demonstrate a 1:1 private match receive priority, which makes private capital a competitive advantage in this program rather than only a formality.

DESVCP works through venture partners

DESVCP reaches startups indirectly, through venture-capital partners rather than through an application to the state. The partner makes the investment decision inside its own process.

A company that has been told it is not a fit for the direct program has not necessarily been told it is out of reach of Delaware's SSBCI capital, and a manager working with Delaware companies is on the other side of this route entirely.

Prepare for the administrator's distinction

• Which route the conversation is about, the direct program or the venture-partner program.
• Evidence that the seed round is complete, for the direct route.
• Headcount against the 100-employee test, and a named lead negotiator.
• The private capital available to match the state's investment.
• A clear separation between an equity request and anything belonging to Delaware's loan programs.