FOR IMMEDIATE RELEASE
July 10, 2025
Contact: Briana Vande Pol 

BOARD APPROVES SEED FUND FOR TECH STARTUPS 

PIERRE, S.D. – The South Dakota Board of Economic Development has approved a $500,000 SD Works Legacy loan to Elevate Rapid City to establish a revolving seed fund for early-stage tech startups. 

“South Dakota’s tech sector is our fastest-growing industry. We want to make South Dakota the best place in the country to start and grow a business, especially in emerging technology,” said Governor Larry Rhoden. “This kind of support gives entrepreneurs a real shot at success and proves once again that South Dakota is Open for Opportunity.” 

The fund will focus primarily on innovation-based businesses that often struggle to access traditional financing, particularly in their earliest stages. Many of these startups are still in the pre-revenue or early-revenue phase and need flexible capital to get off the ground. 

The funding is part of a larger $1 million initiative by the Governor’s Office of Economic Development (GOED) to address a long-standing gap in South Dakota’s startup financing landscape. The remaining $500,000 is expected to be awarded to an East River partner soon. 

The fund will provide early investments with the goal of building a long-term, self-sustaining pool of capital for South Dakota startups. It follows a similar approach to GOED’s COVID disaster loans, which had strong performance and very low default rates. 

“We’re excited to partner with Elevate Rapid City on this effort to support early-stage startups,” said GOED Commissioner Bill Even. “This program helps close a real gap in South Dakota’s financing landscape and gives more entrepreneurs the chance to grow their business here.” 

Elevate Rapid City will manage the western portion of the fund, working with early-stage tech startups in western South Dakota. Their role will help get funding to businesses that fit the program and support the region’s growing startup activity. 

"This is a win not just for western South Dakota, but for the entire state,” said Tom Johnson, President & CEO of Elevate Rapid City. “We’ve spent years working to build a stronger foundation for entrepreneurship, and this fund is a major step forward. Too often, financial barriers stand in the way. Now, we can offer a resource to ensure that innovators with the talent, ideas, and grit to succeed have a real shot at building something here. We’re grateful to the Governor's Office of Economic Development for the partnership and proud to help elevate the economy for all by investing in the people shaping South Dakota’s future." 

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