Texas’ Emerging Technology Fund Electrifies the Texas Economy
The Texas Emerging Technology Fund (TETF) was created by the Texas Legislature at the urging of Governor Rick Perry in 2005 and reauthorized in 2007. The TETF provides up and coming Texas technologies with the support needed to develop and commercialize new technologies, many of which have ties to universities. To date, the TETF has allocated $127.5 million dollars to Texas companies and partnering universities creating a deal flow infrastructure that will serve the state well for many years to come.
In Texas, we understand that high-tech companies don't just happen overnight but are a product of forethought, sound vision and planning, and strategic investments by both the public and private sectors. Through our Emerging Technology Fund, we are bringing the best scientists and researchers to Texas, attracting high-tech jobs and helping start-up companies get off the ground faster. - Governor Rick Perry
Texas Emerging Technology Fund
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Latest Investment Stats
Six Months of Economic Support and Growth in Texas Due to the TETF
In the past six months the TETF has made great strides in providing investment to Texas’ thriving technology sector.
CardioSpectra, a medical device company based in Texas, was awarded $1.35 million in May 2006 and has since produced a 46% return on investment for the TETF.
The Emerging Technology Fund awards $750,000 to StarVision Technologies, Inc., a lead provider of intelligent optical-based guidance.
Texas invests $150,000 in TXL Group, Inc., an El Paso company that develops thermoelectric devices.
OrthoAccel, a Houston-based designer of orthodontic devices, receives a $750,000 investment from the Texas Emerging Technology Fund.
Dallas-based MicroTranponder, a leading developer of closed loop neuroprosthetic devices, receives funding from the ETF.
On February 29, 2008, the TETF invests in NetWatch Solutions, an asset management software company based in Richardson, TX.
Texas Piezoelectric of Dallas receives funding from the TETF to assist in their development of battery-free medical implants and wireless environmental sensors.
The Texas Emerging Technology Fund invests in Anatomically Precise Manufacturing Consortium, a North Texas organization that accelerates the affordable commercialization of nanotechnology products.
Future Semiconductor Commercialization (Fusion), a company that produces nanostructure materials to enhance medical imaging, received funding from the TETF.
Good News From the North Texas RCIC
North Texas Hosts Second Annual TECH SUCCESS Event – Secretary Wilson Announces $12 Million in Awards to Five Companies/Consortia
Dallas, TX –March 4, 2008 --- The North Texas Regional Center for Innovation and Commercialization (NTXRCIC) hosted their annual event, TECH SUCCESS 2008 on February 28th. Guests were invited to the Communities Foundation of Texas to celebrate innovation, entrepreneurship and five new ETF awards totaling $12 Million.
The event was attended by over 220 including Texas Secretary of State, Phil Wilson, Senator Florence Shapiro, representatives from the Governor’s Office and a variety of leaders from industry, academia and the investment community from across North Texas. Mark Ellison, Executive Director for the ETF was the Master of Ceremony for the evening, thanking the attendees for their support of the TETF and inviting the audience to
“Keep up the good work!”
This year’s TECH SUCCESS included a North Texas ETF Awardee Showcase with ten companies and organizations participating; SNR Labs, PrincipleSoft, Resonant Sensors, Photodigm, Global Contour, OptiSense Networks, Hanson Robotics, University of North Texas Health Science Center Fort Worth, University of Texas -Tyler and The Nanotechnology Research Initiative (UT-Dallas, UT-Austin and UT-Arlington). Each exhibitor had the opportunity to visit with guests to provide an overview and display of their innovative products and technologies.
During the program Secretary of State, Phil Wilson announced $12 Million in awards to five new projects; Atomically Precise Manufacturing Consortium (APMC), Future Semiconductor Commercialization Consortium(FUSION), MicroTransponder Inc., Texas Piezoelectric, Inc. and Net Watch Solutions. Each awardee received a commemorative ‘Texas size’ check and a photo with the honored guests to acknowledge their entrepreneurial spirit and partnership with the State of Texas.
Thank you to all of our volunteers, evaluators, Board of Trustees and staff that made this event possible. We look forward to Tech Success 2009!
Photos of the event may be viewed at:
Texas Becomes a Leader in
the Fight Against Cancer
In 2007 Texas took a bold step in the fight against cancer. Texas lawmakers passed, and Texas voters approved, a measure to create the Cancer Prevention and Research Institute of Texas and invest $3 billion over 10 years towards finding a cure for cancer.
Governor Rick Perry who championed this effort said, “With additional funding, we can enhance existing research efforts, lure the brightest research minds from around the world, and provide grants to promising projects.”
The Institute has three main functions:
- Further cancer research and prioritize a medical or scientific breakthrough in the prevention of cancer and cures for cancer;
- Attract, create, and expand research capabilities of public or private institutions of higher education and other public or private entities that will promote a substantial increase in cancer research and in the creation of high-quality new jobs in this state; and
- Develop and implement the Texas Cancer Plan.
Appointments to the Institute’s oversight committee to date include:
- Malcolm Gillis of Houston
- Jeanne J. Phillips of Dallas
- Scott C. Sanders of Austin
- Dr. Joseph Bailes of The Woodlands
- Dee Kelly of Fort Worth
- Cindy Brinker of Dallas
The Coalition will keep you updated on developments as the Institute begins its important work.
Small Businesses Thrive with the
Texas Certified Capital Company Program
To improve access to much needed capital for small and early stage businesses in the State, the Texas Legislature approved legislation (in 2005 and reauthorized in 2007) to target investment in small and early stage companies. The Texas CAPCO Act provides $200 million of investment capital for businesses located in the State. A portion of the investment is targeted to a Strategic Investment Area, which is a county that receives special investment status for the CAPCO Program and other programs as well. A low-income community receives special status for the CAPCO Program and for federal programs.
CAPCO’s earn tax credits by raising large sums of capital to invest in targeted businesses. A CAPCO must meet certain investment criteria and timeframe milestones, pay annual certification renewal fees to the Comptroller’s office and adhere to reporting and spending requirements. This results in tax revenues for the state through business growth and creation of high paying jobs.
47 companies in Texas have received investments from the CAPCO program to date.
For additional information go to:
Paris, Texas Company Makes Great Strides with CAPCO Investment
T&K Machine, Inc.
Use of funds: Recapitalization and growth capital to expand the business at a precision aerospace machine and assembly facility
Location: Paris, TX
Advantage Capital Partners Texas CAPCO investment: $1.5 million
Stonehenge Capital Corporation Texas CAPCO investment: $1.5 million
Total investment from all sources in funding round: $5.03 million
Project Summary: T&K Machine is a manufacturer of highly engineered precision-machined airframe components and light assemblies for the commercial and military aerospace markets. The company produces a wide range of structural and airframe components, such as door latches and parts for wing boxes and cargo boxes. T&K serves some of the leading original equipment managers (OEMs) and Tier 1 aerospace suppliers
including Spirit AeroSystems, Goodrich Corporation, Boeing and Vought Aircraft.
The 2007 Texas CAPCO investment and follow on funding enabled T&K Machine to purchase new manufacturing equipment, restructure debt, and create and/or retain approximately 70 well-paying jobs with full benefits, with an average salary of $35,019. Financing also enabled management team members to purchase ownership in the company.
T&K is located in Paris, Texas, the seat of Lamar County, a "Strategic Investment Area" county in northeastern Texas, close to the Oklahoma border. Additionally, the region is a federally qualified "Distressed Area" and "Hot Zone."
The company fosters job opportunities for low-income and unemployed persons through collaborative relationships with the Texas Workforce Centers. The one-month long program targets both high school graduates and out-of-work hourly laborers for high-speed, precision machining. Participants spend two weeks of half-day classroom oriented curriculum (developed by T&K) and half-day in the T&K manufacturing setting for
live demonstrations; at the conclusion of the two weeks, participants then spend two weeks of full-day apprenticeship on the T&K manufacturing floor. To date, 45% of those starting the program have graduated, with 14 securing full-time employment with T&K.
Texas Provides Funding for Businesses in Critical Growth Stage
The Texas Small Business Fund and Texas Product Development Fund provide funding for companies in the growth stage. This is a critical period when a company has received its early stage or seed money but hasn’t fully matured. The state has found a unique solution with the Texas Small Business Fund to support these companies during their growth.
IBM and the IFC Work Together to Help Small Businesses Succeed
On July 26, 2007, IBM and IFC – the private sector arm of the World Bank – officially launched the next chapter of the SME Toolkit. The new SME Toolkit management platform will deliver more than 500 interactive tools, business forms and how-to articles created by leading content providers for the small and medium enterprise space. This cutting edge set of assets helps promote economic growth in underserved and emerging markets.