Venture capitalists lend money, hand to South Dakota companies – State program will increase amount available to firms

When Cemeteries Aglow Inc. was looking to expand its solar-powered memorial-light business in the early 1990s, the company got in touch with Paul Schock.

Schock and Steve Kirby were forming Bluestem Capital Co. in Sioux Falls when the Mitchell-based business sought to grow, said Cemeteries Aglow Chief Executive Officer Sherri Kayser.

"They liked the product, liked what we do for people, and a relationship grew from that," Kayser said.

Schock and Kirby invested a few hundred thousand dollars in Cemeteries Aglow. It eventually was able to move to its own building and expand into other products.

To boost emerging companies’ access to investors, the state will begin granting loans of up to $1 million to venture capital firms that put up four times the borrowed amount, said Jafar Karim, director of the governor’s Office of Economic Development.

WEB SITES

# Bluestem Capital http://www.bluestemcapital.com

# Genesis Equity Fund http://www.genesisequityfund.com

# Governor’s Office of Economic Development http://www.sdgreatprofits.com

DIRK LAMMERS
Associated Press

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