active State Program

California IBank Venture Capital Program (Expanding Venture Capital Access)

California Infrastructure and Economic Development Bank (IBank) — Governor's Office of Business and Economic Development (GO-Biz)

Equity co-investment (state-managed $250M)

Visit official program ↗ See if you qualify — free

The short version

State VC co-investment

The California IBank Venture Capital Program — branded 'Expanding Venture Capital Access' — is a state equity-investment program funded by the federal State Small Business Credit Initiative (SSBCI 2.0) and administered by IBank within GO-Biz. The program commits up to $250 million (initially $200M, supplemented with up to $50M from the state's Small Business Expansion Fund) to build a more inclusive venture capital ecosystem in California: roughly $150–200 million is invested into venture capital funds (especially those led by underrepresented managers and those reaching socioeconomically disadvantaged geographies), with the balance invested directly into eligible startups. Direct investments require the startup to have already secured a lead investor in the current equity round. Applications are screened by IBank's investment advisors (Cambridge Associates and Recast Capital). Unlike a grant, this is an equity investment program.

Funding type: Program
Level: State
Amount range: Equity co-investment (state-managed $250M)
Realistic amount: For direct investments, IBank co-invests alongside a lead investor on the round's terms, so …
Deadline: Rolling — IBank accepts fund-manager and direct-investment applications on an ongoing basis and makes investments as opportunities are evaluated.
Status: active
States: California
Payment model: advance

Who qualifies

Direct investment: company must have secured a lead investor in the current equity financing round (equity only; debt does not qualify)
California nexus consistent with SSBCI program rules
VC fund managers: must target a fund size of at least $50 million; program prioritizes underrepresented managers
Program priorities favor underrepresented entrepreneurs, socioeconomically disadvantaged geographies receiving limited VC, and climate equity/justice
Must complete IBank's application form (direct-investment or fund-manager) in full to be considered

Hard requirements

Must be an incorporated business

What it covers

Eligible expenses

Equity capital for company growth (general corporate purposes per the round)
Capital for VC funds to deploy into California businesses

Ineligible expenses

Debt financing (does not qualify for direct investment)
Uses inconsistent with SSBCI program rules

How to apply

1

Determine your track and secure a lead investor (startups)

Decide whether you are applying as a VC fund manager or as a startup seeking direct co-investment. For direct investment, first secure a lead investor for your current equity round — this is a prerequisite.

~8 hrs
2

Complete the appropriate IBank application form

Fill out the IBank Fund Application Form (fund managers) or the IBank Direct Investment Application Form (startups), answering all required questions. Incomplete forms are not considered.

~8 hrs
3

Screening by IBank's investment advisors

Cambridge Associates and Recast Capital screen submissions. The program notes that many strong opportunities are declined due to limited capital and competitive dynamics.

~4 hrs
4

Diligence and investment

Selected opportunities proceed to diligence and investment on the round's terms (for direct deals, alongside the lead investor).

~8 hrs

Insider tip

For the direct-investment track, do not apply until you have a committed lead investor on the current round — IBank co-invests on the lead's terms and won't price the round itself, so the lead is the gate. The program is explicitly mandated toward underrepresented managers and underserved geographies, so a fund or founder fitting that thesis is a materially stronger fit than a generic Bay Area round.

Deadline & timing

There is no fixed deadline. VC fund managers and startups (with a secured lead investor) submit IBank's fillable application forms; investments are screened by Cambridge Associates and Recast Capital and made as capital and fit allow. Program funding was supplemented in recent years toward the ~$250M commitment.

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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.