RAPID CITY, S.D. — Tech entrepreneurs in western South Dakota are getting a significant boost as the South Dakota Board of Economic Development has approved a $500,000 loan to Elevate Rapid City to launch a revolving seed fund for early-stage technology startups.
The funding, awarded through the SD Works Legacy Fund, is part of a broader $1 million initiative by the Governor’s Office of Economic Development (GOED) to address long-standing challenges faced by innovation-based businesses in accessing early capital. The remaining $500,000 is expected to go to an East River partner.
“South Dakota’s tech sector is our fastest-growing industry,” said Governor Larry Rhoden in a statement. “This kind of support gives entrepreneurs a real shot at success and proves once again that South Dakota is Open for Opportunity.”
The fund will target businesses in the pre-revenue or early-revenue stage—companies that often don’t qualify for traditional loans but need capital to scale operations, develop products, or enter new markets. Elevate Rapid City will oversee the fund’s western South Dakota operations, working directly with local startups to evaluate funding opportunities.
“This is a win not just for western South Dakota, but for the entire state,” said Tom Johnson, President and CEO of Elevate Rapid City. “Too often, financial barriers stand in the way. Now, we can offer a resource to ensure that innovators with the talent, ideas, and grit to succeed have a real shot at building something here.”
According to GOED Commissioner Bill Even, the effort builds on the success of previous revolving loan programs, such as COVID-era disaster loans, which demonstrated high repayment rates and strong entrepreneurial outcomes.
With the Black Hills region already seeing momentum in entrepreneurship, the new fund positions Rapid City as a key driver in South Dakota’s tech-driven economic development.
