This special edition of our e-newsletter focuses on actions taken by the 81st Texas Legislature impacting economic development and long-term access to capital for entrepreneurs and emerging companies.
In each newsletter, we highlight Texas’ emerging investment infrastructure, recent investments, and the spectrum of funding sources available to our small businesses. Texans are pioneers, and the infrastructure we are seeing come to fruition – connecting companies and capital – is no exception.
We are a resource for promising young companies, entrepreneurs, investors, economic developers, and other stakeholders in the deal flow chain. The Texas Coalition for Capital hopes to work with you to keep Texas the most vibrant business climate in the country.
With best regards,
Craig Casselberry, President
Texas Coalition for Capital
Global Consortium of Entrepreneurship Centers 2009 Conference
October 15-17, 2009
Click HERE to learn more.
Advisory BoardChairman, Tom Kowalski
Texas Healthcare & Bioscience InstitutePresident, Craig Casselberry
Quorum Public AffairsDan Matheson
Matheson Law PartnersJeff Clark
Tech AmericaLarry Peterson
Texas LyceumPike Powers
Fulbright & JaworskiDamon Rawie
Advantage Capital PartnersSteven Anderson
West Texas Coalition for Innovation CommercializationJames Arie, Ph.D.
University ot Texas Medical Branch-GalvestonCurt Bilby
Terapio LLC Susan Davenport
Greater Austin Chamber of Commerce/Central Texas RCICGuy Diedrich
Texas A&M UniversityYork Duncan
Texas Research Park FoundationMichael Dwyer
Azaya Therapeutics Inc.Sloan Foster
Digital Convergence InitiativeEric Fox
Lockheed MartinFernando Gonzalez
Rio Grande Valley Regional CICNeal Iscoe, Ph.D.
University of Texas-Office of Technology CommercializationMartin Lindenberg
AlphaDEV LLPMike Lockerd
North Texas Regional CICAndrew Nat
Texas Life Science Regional Center of InnovationBeto Pallares
El Paso/Trans-Pecos Regional CICJim Poage
Satai Network/South Texas Regional CICBrian Hermann
University of Texas Health Science Center San AntonioBob Prochnow
Gulf Coast Regional CIC Terry Schpok
Akin Gump Strauss Hauer & Feld, LLPBrent Sorrells
TECH Fort Worth Dennis K. Stone, M.D.
University of Texas Southwestern Medical Center Mark Ellison
Texas A&M University Sara Patuel
The University of Texas/TechBA Program Jacqueline Northcut
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Emerging Technology Fund is Fully Replenished
Amid the current economic storm, there is a silver lining for Texas entrepreneurs.
The 81st Texas Legislature agreed to replenish the Emerging Technology Fund with an appropriation of $203.5 million for investment in new companies with global impact.
The funding of this crtical program will accelerate the next generation technology economy in our state and reaffirms Texas' position as a global leader in a new company formation, high-paying jobs, wealth creation and commercialization or our world class research.
The ETF's Regional Centers of Innovation and Commercialization provide the statewide infrastructure. Eight RCICs throughout the state represent the economic and technological diversity of their regions. Today over 500 seasoned experts volunteer their time to evaluate, coach, mentor and select quality investment opportunities. The fund has screened over 1,000 company proposals and invested in more than 80 early stage technology companies.
ETF has become a national model. The fund has grown into the most active early stage investment fund in the country and today provides the foundation for innovation, transitioning ideas into the marketplace with management and private capital. The program maintains a diverse portfolio of medical devices, energy, nanoelectronics, semiconductors, pharmaceuticals, biopharmaceuticals, IT, biotechnology, robotics, nanomedicine, defense, aerospace telecommunications and software.
Every ETF-funded company has a collaborative relationship with one or more Texas institutions of higher education. Since ETF's creation, 45 world-class researchers and their teams have been recruited from around the world to 14 Texas public universities. Today, the fund's investment of over $74 million to recruit those teams has resulted in an additional $139 million from private and federal sources into those institutions - and we're still counting.
The success of the ETF would not have occurred without the leadership and foresight of our elected leaders at all levels, the work of economic development officials across the state and the enduring entrepreneurial spirit that makes Texas the best place in America to do business.
New Threshold Exempts More Businesses from Margin Tax
The Legislature gave a tax break to an estimated 40,000 small businesses in Texas by exempting those making less than $1 million from the state’s business margin tax.
Some tax policy watchers say recession hindered passing a bigger break as the exemption threshold was originally set at $300,000 in annual revenue.
The move will save Texas small businesses about $172 million over the next two years. The business margin tax raised about $4.3 billion in the 2008 fiscal year, but was originally projected to raise $6 billion annually. The money goes to support public education in Texas.
To continue reading, please click here.
CAPCO Program Investing in Texas Small Business
The Texas Certified Capital Company (CAPCO) program continues to provide a boost to promising young companies and the Texas economy.
With venture investment and bank lending at a standstill, programs like CAPCO provide an ever critical role in catalyzing the flow of capital to our promising young companies. In the current economic environment, our entrepreneurs and small businesses can be the engine that will drive our state and nation back to sustained prosperity.The U.S. Small Business Administration credits small businesses with the creation of 60 to 80 percent of the net new jobs in the U.S. over the past dozen years.
Since the CAPCO program’s inception in 2005, the results have been impressive. According to the Comptroller’s report to the Legislature - and additional data encompassing 2008 - certified capital companies have invested $122,158,000 in small Texas companies, and attracted follow on private capital totaling $108,267,035 in these companies, creating or retaining 1,743 jobs.
“Access to working capital often makes the difference between success and failure for small companies,” said Clayton Christopher, president and CEO of Sweet Leaf Tea, which has received CAPCO funding. Sweet Leaf Tea recently announced that Nestl Waters North America, Inc. has purchased a stake in the company that will transform the company from a regional brand to one with full national distribution within 24 months.