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The Delaware Innovation Fund History

The DIF is a $10 million dollar non-profit seed and early stage venture capital fund in Delaware. The DIF operates in a similar manner as a for-profit venture fund, except that job creation, entrepreneurial education, technical and operational assistance, and business support counseling are part of its mission. The DIF was initially funded through grants and debt instruments structured as “permanent equity,” with the goal that the DIF would become a self-perpetuating pool of capital available for businesses located within Delaware and the surrounding Mid-Atlantic region. 

The DIF has made investments in 21 companies since its inception and has been  instrumental in assisting portfolio companies with raising in excess of $20 million in subsequent institutional investment rounds for its portfolio companies. 

The DIF has been recognized nationally as a unique entrepreneurial funding source by "Inc." and "Entrepreneur" magazines and has also been recognized as one of the four most successful seed fund models by the National Association of Seed and Venture Funds. In addition, the DIF's President, David J. Freschman, was awarded the 1998 "Financial Advocate of the Year" award by the Small Business Administration.

The DIF is also one of the founding sponsors of the nationally recognized Early Stage East Venture Fair, an event that strives to match highly qualified entrepreneurs with venture capital funding sources. Participating entrepreneurs are pre-qualified and present their business initiatives to an audience of venture capitalists, investors and investment firms from around the country. Nationally recognized as a premier venture capital event, Early Stage East attracts serious investors, earnest entrepreneurs and renowned business and government leaders. Early Stage East now includes monthly programs promoting technology and entrepreneurial issues. Over $500 million in venture capital has been raised to date by the companies that have participated in Early Stage East programs.

David Freschman, CEO of the DIF, is also the founder of Early Stage East. 

In December 2000, the America-Israel Chamber of Commerce awarded the DIF a joint citation from the State of Israel and the Mayor of Philadelphia for our economic development work between the Israeli technology community and this region.