State Legislators to Propose Expansion of Ohio Capital Fund

In support of what they call one of the state’s key economic development programs, two state representatives said they plan to introduce legislation that will extend by at least $100 million the Ohio Venture Capital Fund. State Reps Jay Goyal, D- Mansfield and Sandra Williams, D-Cleveland made their announcement as part of the 2008 Ohio Venture Capital Summit held this week in Columbus. 

Established in 2005, the Ohio Capital Fund is a $150 million investment fund committed to venture capital firms that operate a principal office within the state and invest at least half the money they receive into Ohio-based companies.  The program, which currently has $111 million committed with the balance being delivered soon, has resulted in the funding of 35 companies which generate in excess of $90 million in annual payroll within the state. 
"The Ohio Venture Capital Fund provided a significant draw to venture funds from outside the state and make investments," says Ted Ford, president of TechColumbus.  "The expansion and further growth of that is much needed."
Also during the Summit, Michael Camp, academic director for OSU’s Center for Entrepreneurship, presented the results of the 2008 Ohio Venture Capital Report.  The report showed that although venture capital investment fell by four percent in 2008, in context that dip followed a 66 percent increase in 2007.  Camp noted that Investment in the earliest stage companies – pre-seed, seed and early-stage – was up 66 percent for the year, totaling $238 million.  The biggest drops were in investments in companies that were close to being sold.  These investments were down 44 percent.  

In comparison Camp reported that many other states experienced drops in venture capital investments of approximately 50 percent.  The state’s total venture capital investments were $446 million in 2008. 

For more details see the stories in Business First and Columbus Dispatch.