Archive for July, 2009

SEEC INC, a multidisciplinary commercialization incubator based in Atlanta, Georgia, announced the formation of a low-profit limited liability company (L3C) to further its mission of bringing its portfolio of technologies to global markets through socially, environmentally, and economically beneficial applications. The subsidiary, SEEDR L3C, concentrates R&D and field expertise to aid SEEC technologies in designing applications for global development, particularly in the fields of health, energy, infrastructure, and recycling.

The L3C is a new type of legal structure designed for businesses wishing to bring private-sector resources to charitable causes in the spirit of social enterprise. Although L3Cs pursue traditionally nonprofit causes, they still compete in markets and therefore are not tax exempt and do not fall under many of the same rules governing nonprofits.

While L3Cs must return a minimum of 80% of their proceeds to their own charitable mission, they are permitted to distribute the remaining 20% of their profits to investors. This structure provides L3Cs a unique IRS designation that allows them to work more closely with private foundations through grants and program-related investments (PRI) while also accepting investment from private investors. This more flexible capital structure enables SEEDR to better manage potentially risky investments in R&D and ventures in developing countries. It also avails SEEDR to a broader range of financing sources than those of traditional for-profit and nonprofit organizations.

Because the L3C legal structure is only available in a limited number of states, SEEC registered SEEDR in the State of Michigan. SEEDR will operate from the SEEC headquarters in Atlanta, Georgia. As SEEDR’s parent company, SEEC will provide an expanding portfolio of technologies and an infrastructure of strategy, financial, and legal services.