Vermont startup incubator VSET briefs House committee on HUD-backed fund, workforce and lending gaps

David Bradbury, president of the Vermont Center for Emerging Technologies (VSET), told the Vermont House Committee on Commerce & Economic Development on Jan. 13 that VSET supports startups statewide through advising, a platform of in‑kind perks and a family of investment funds — and urged the state to consider tools to fill gaps in lending and workforce training.

Bradbury said VSET focuses on “people, platform, and capital” to help tech and tech‑enabled businesses start, scale and sustain. “We try to be authentic, serve the entrepreneur,” he said, adding that VSET is a nonprofit organization that provides no‑cost advising and connects founders with mentors, shared services and discounts.

Why it matters: Bradbury told lawmakers that companies advised by VSET have generated substantial economic activity and that capital programs can be structured to encourage Vermont‑based growth. He cited cumulative outcomes VSET tracks — “$780,000,000 in revenue, $614,000,000 in capital total” — and said those figures show companies increasingly rely on customer revenue rather than only outside capital.

Fund structure and federal support

Bradbury described a set of funds VSET helps manage. He said Fund II (referred to by VSET as the Vermont Growth Fund II LLC) launched roughly two years ago with a $9,000,000 appropriation that Senator Patrick Leahy secured using HUD monies; under HUD’s conditions that vehicle cannot be used to buy or rehabilitate real estate. “As a condition of the agreement with HUD … we’re like no, no fixed real estate with the capital that we would invest,” Bradbury said, explaining the restriction was intended to avoid triggering lengthy environmental reviews and to keep investments syndicable. Bradbury said VSET has invested about $4,700,000 from that fund to date.

He contrasted Fund II with the state’s Vermont Seed Capital Fund (formed around 2009 with legislative and executive support), which has different eligibility limits and may invest in smaller, earlier‑stage companies that meet revenue and Vermont‑employment thresholds.

Programs and portfolio examples

Bradbury highlighted VSET’s noncapital supports — cloud credits, software licenses and a shared jobs listing platform — and said the nonprofit recently ran a jobs site that listed more than 500 positions by year‑end. He named several portfolio companies as examples of sector diversity, including Praxis Health Solutions (medication therapy management), a control‑technology firm working on HVAC and drying systems, ResNetLink Medical (wireless charging for implants) and a thin‑film solar project using perovskite technology being piloted with the Leahy Institute.

State policy recommendations and financing gaps

In response to committee questions, Bradbury urged the reauthorization of VEGI (referred to in the hearing as “Veggie”) and said SSBCI (State Small Business Credit Initiative)‑style funds expanding venture capital resources are promising. He also identified an unmet need for a state lending vehicle that can provide short‑term working capital on terms risk‑tolerant enough to enable growth (for example, financing of receivables or near‑term federal contracts) without forcing entrepreneurs to dilute equity.

“We need some sort of lending vehicle that is a little bit riskier,” Bradbury said, explaining that such financing would let mid‑stage companies buy equipment or fulfill large government contracts without expensive equity raises.

Education, capacity and federal grants

Bradbury told lawmakers VSET engages with career technical education programs and hosts high‑school and college visits, but said the organization is capacity constrained and has prioritized college‑age founders and teams. He noted VSET has offered free student membership and supports internships. On federal funding, Bradbury described administrative constraints (drawdown and reimbursement rules) that can complicate the use of federal grants for venture investing, but said recent federal programs have expanded the pool of available capital.

What’s next

Bradbury invited committee members to visit VSET in Burlington and closed by thanking the committee. The chair then moved the meeting to the next agenda items, saying additional training and floor items would follow later in the day.

Attribution: Direct quotes and paraphrased claims in this article are attributable to David Bradbury, president of the Vermont Center for Emerging Technologies, as spoken to the Vermont House Committee on Commerce & Economic Development on Jan. 13, 2026.