Southern Appalachian Fund

The Southern Appalachian Fund is a venture capital firm based in Oak Ridge, Tennessee, with an additional office in London, Kentucky. The firm specializes in providing growth capital and early-stage financing to small businesses in southern Appalachia, focusing on Tennessee, Kentucky, and selected Appalachian counties in Georgia, Alabama, and Mississippi. With a total fund size of $12.5 million, it typically invests between $200,000 and $600,000 in companies with strong management teams and high growth potential, often in two or more investment rounds. The firm seeks equity investments, primarily acquiring preferred stock, and generally aims for exits within four to seven years through methods such as external sales, mergers, or management buyouts. The Southern Appalachian Fund is also involved in operational assistance and active board participation to enhance the value of its portfolio companies. As one of six New Markets Venture Capital Companies in the U.S., it aims to promote economic development and job creation in low-income areas, leveraging partnerships with institutional investors and access to U.S. Small Business Administration-backed debt. Currently, the fund is fully invested and is not seeking new investment opportunities.