The Georgia state government could take a lesson from our esteemed neighbors to the south, where Florida Governor Jeb Bush is doing his part to spur on local economic development.
Florida Gov. Jeb Bush has proposed that the state’s legislature set aside $75 million to invest with established venture capital firms that would match the state’s funds and invest the money in Florida start-ups. The state also would guarantee a certain minimum return for the participating venture capital firms, which would be compensated with tax credits — if the as-yet undetermined returns were not hit, Inc. magazine reported. Florida attracted only about 1.4% of total venture capital investment in the U.S. in 2004, according to a report from the state’s economic development agency.”We have to continue to grow our innovation economy if we are going to compete worldwide,” said Bo Taff, deputy director Governor’s Office of Tourism, Trade, and Economic Development.
I like the strategy of investing the state funds along with “established venture capital firms.” Looks like a solid way for the state to invest in their own economy, but at the same time mitigate the risks a bit by leaning more on the professionals. The guaranteed return and tax credit compensation is a nice hook …
– Scott Burkett