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UK, Keyhorse awarded ‘Build to Scale’ grant to support Kentucky startups, diversify investors

UK, in partnership with Keyhorse Capital, is a 2023 Capital Challenge Grant recipient. The project “Invest Blue — Supporting Kentucky Startups, Developing Venture Capital Managers” was awarded nearly $1.5 million in total, including the federal award with a local match from UK and Keyhorse Capital.

UK-backed program aims to cultivate more in-state angel investors

Invest Blue is a partnership between Keyhorse Capital at Kentucky Science and Technology Corporation (KSTC) and Launch Blue at UK, which is the “accelerator arm” — in Smalls’s words — of UK Innovate.

According to the description on a UK website, the program “aims to facilitate deployment of private, risk-based capital into early-stage Kentucky startups, including startups within the UK community and those formed to commercialize technologies resulting from UK Research.” It is rooted in a U.S. Economic Department Administration (EDA) Capital Challenge grant of $749,795 that went into effect on Nov. 1, 2023 and runs to Oct. 31, 2026.

The infrastructure for the program has been put into place. Now, Smalls and her team are trying to recruit possible angel investors from all parts of Kentucky. In recent times, Smalls has maintained an ambitious travel schedule, similar to that of Monique Quarterman, the former executive director of KY Innovation.