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As the St. Louis region continues to cultivate innovative founders, ideas and companies, the need for additional funding sources grows. We asked 10 St. Louis-based venture and private equity firms to comment on the gaps they see for our startups, what they consider when making investments and how they view St. Louis’ current funding climate.

Peter Reinecke is Founder & Managing Director of Arsenal Capital Management.

Pete Reinecke
Photo courtesy of Peter Reinecke

From your perspective, what gaps do you see in local funding for startups?

The seed round between $1 million and $3M; a seed fund with $50 million raise.

What are some of your organization’s current focuses or goals?

Managing the current portfolio, building a successful track record.

When looking at potential companies in which to invest, what are the top three factors you consider?

Strength of product, realistic valuation and integrity and commitment from the founder.

What advice do you have for founders seeking capital right now?

Have a realistic valuation structure and downside risk management.

Why should investors invest in St. Louis startups right now?

Entrepreneurs have to go where the money is. Arsenal Capital Management’s goal is to keep them in the St. Louis area.

This article was published in EQ’s Spring 2016 issue.

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Kelly is Cofounder/Managing Partner of EQ and Cofounder of ALIVE Media Group. After earning an M.A. in literature at Washington University in St. Louis, Kelly cofounded ALIVE in 2002. He believes becoming an entrepreneur can change not only the life of that entrepreneur, but also his/her community and the world, and that being able to tell stories of transformation like that is the best job one could have.