Today, the Department of Defense (DoD) is publishing the names of the entire first cohort of Licensed and Green Light Approved funds under the Small Business Investment Company Critical Technologies Initiative (SBICCT Initiative). The SBICCT Initiative is a partnership between the DoD and the U.S. Small Business Administration (SBA) to strengthen U.S. national and economic security by attracting and scaling private investment into the DoD Critical Technology Areas (CTAs) and into component-level technologies and production processes.
Collectively, this first cohort is projected to invest over $4 billion into over 1700 portfolio companies focused on all 14 CTAs and on strategic component technologies and production processes. These investment funds hail from all regions of the country with offices in 15 states and Washington, D.C. Taken together, this first cohort plans to invest across the full spectrum of stages and strategies of private investment including seed, venture, growth, buyout, direct lending, special situations, and fund-of-funds.
To meet the Green Light Letter milestone, these investment funds:
● Prepared and submitted a detailed application describing, among other things, their management team, investment strategy, track record, fund structure, and copies of their governing documents.
● Successfully underwent a rigorous operational and investment due diligence process and legal review of their application.
● Participated in a formal interview with the SBA's Investment Committee.
● Received notification that the fund had demonstrated the requisite experience and skills to successfully manage a Small Business Investment Company (SBIC) from the Investment Committee, the SBA Agency Licensing Committee, and the SBA Administrator.
After receiving the "Green Light Letter," each fund is invited to raise private capital. When the fund is ready to close on the initial tranche of private capital, that fund will apply to receive their SBIC license – after which they will be able to access their approved leverage and begin investing in portfolio companies. Seven funds in the first cohort are fully licensed and have commenced investment activity.
SBICCT Initiative - First Cohort
**The above graphic lists 17 of the 18 Licensed and Green Light Approved funds in the first SBICCT Initiative fund cohort. One fund that is Green Light Approved has elected not to have their name shared publicly, which is permitted under SBA policy.
Interest in the SBICCT Initiative continues to grow, with over 100 funds having expressed interest to date. The diligence process has commenced on the second cohort of funds that have applied to the SBICCT Initiative, with additional funds expected to file applications at the next filing deadline on March 31, 2025.
