Venture capital investments; creates program which makes investment return guarantees for certain. (HB1697)

Introduced By

Del. Bob Purkey (R-Virginia Beach)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Venture capital investments, investment return guarantees. Creates a program under which the Commonwealth makes investment return guarantees for certain investments made between January 1, 2007, and January 1, 2012, in venture capital funds that invest in technology firms located in the Commonwealth. The Virginia Economic Development Partnership Authority shall administer the program. A venture capital fund eligible under the program must have an office in the Commonwealth, an established history of investing in businesses or industries that are in the early stages of development, and must enter into a contract with the Authority under which it promises to use its best efforts to invest three times the amount of principal it receives in technology firms located in Virginia. Pension funds, endowments, and other institutions investing in eligible venture capital funds shall receive investment return guarantees from the Commonwealth. The Commonwealth guarantees a 10% average annual rate of return over a 10-year horizon to such institutions incorporated or having administrative headquarters located in the Commonwealth. The Commonwealth guarantees to all other institutions that they will not lose any of their principal investment over the 10-year period. The financial guarantees are in the form of supplemental appropriations to such institutions such that the guaranteed rates of return are realized. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
12/15/2006Committee
12/15/2006Prefiled and ordered printed; offered 01/10/07 078919472
12/15/2006Referred to Committee on General Laws
01/10/2007Assigned GL sub: #4 Prof./Occup./Admin. (Cosgrove)
01/12/2007Impact statement from DPB (HB1697)
01/25/2007Referred to Committee on Appropriations

Comments

Harry Landers writes:

Why should the taxpayers of Virginia subsidize (with their financial guarantee) a private business? And what makes technology firms more worthy of these subsidies than any other business?