Tuesday, January 26, 2016

Illinois to invest $220M in venture funds focused on tech startups

Meg GrahamContact ReporterBlue Sky Innovation

Illinois Treasurer Michael Frerichs said Tuesday that the state will invest more than $220 million in venture funds focused on emerging local technology companies.

The Illinois Growth and Innovation Fund will invest the capital in 15 to 20 funds over the next three years, with no more than 15 percent of the money placed in any one fund. Tech leaders said the influx of new money will strengthen fledgling tech companies and create jobs.

Frerichs, who announced the initiative Tuesday morning at Merchandise Mart-based tech hub 1871, said the money will come from funds already allocated for investments and will be aimed at technology and bioscience companies.

An advisory board will oversee the investments, which will begin later this quarter. Northern Trust subsidiary 50 South Capital Advisors will manage the program.

“We think it’s going to help grow the technology industry here in the state; really make Chicago the leader in technology in the Midwest,” Frerichs said.

In 2002, Illinois lawmakers authorized the first Technology Development Account, which resulted in investments in venture funds that backed parking app company SpotHero, online childcare matching service Sittercity and cancer surgery probe maker Diagnostic Photonics, among other companies. The Illinois Growth and Innovation Fund is nicknamed “TDA II.”

“We expect to see... more great entrepreneurial stories, and we expect to see some great returns for the treasurer's office,” said Maura O'Hara ⇒, executive director of the Illinois Venture Capital Association.  

Above is from:  http://www.chicagotribune.com/bluesky/originals/ct-frerichs-tech-venture-funds-bsi-20160126-story.html

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