The State of Maryland is creating a $70 million investment fund to deploy into venture capital funds to stimulate innovation, spur economic growth, and create jobs.
This initiative is called “InvestMaryland,” and I am proud to have been appointed by Governor Martin O’Malley as a Member of the Maryland Venture Fund Authority, which will provide guidance to and oversight of the program.
This is a groundbreaking effort by the State of Maryland, and I applaud all of the various business and political constituencies who made this happen.
The State plans to raise at least $70 million by auctioning off tax credits to insurance companies. About 2/3 of these proceeds will be invested into private venture capital funds, and 1/3 will be given to the Maryland Venture Fund, which will in turn invest in emerging companies in industried such as information technology, clean energy, and life sciences, among others.
Maryland is not the first state to employ this idea. Eleven other states already have programs similar to InvestMaryland. The expected benefit from InvestMaryland, according to some, is the creation of 2000+ new jobs while supporting at least 200 businesses.
Here is the the link to Gazette.net’s article in February, 2011 which covers the announcement of the program.
I am encouraged by these kinds of initiatives and would love to see more states embrace these kinds of public-private efforts to stimulate capital formation, and help create jobs and nurture new technologies and emerging companies.
Thank you for reading. Let me know your thoughts about the InvestMaryland program or other ways in which technologies and small businesses can be supported. And please sign up for my Blog!
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