Innovation Finance Program

LD 1 "An Act To Stimulate Capital Investment for Innovative Businesses in Maine" has been signed into law.

This program creates incentives for 20 Million Dollars in the Public Employee Retirement System that have already been targeted for equity investments to be placed in funds that are seeking to invest in innovative Maine businesses.

TechMaine has worked over the past several legislative sessions to bring together our state legislators and government executives together with venture capital partners and other successful Fund managers to develop legislation for Maine.  While the new Innovation Finance Program is smaller in scale than the original $100 Million Fund of Funds that TechMaine proposed, it is a needed capital resource initiative that will build a pool of private equity investment in emerging technology start-ups and ideas. Maine can secure a competitive advantage in New England by implementing this new investment vehicle.

WHY THE INNOVATION FINANCE PROGRAM:

• Drive Maine’s level of venture capital investment higher
• Attract attention of top venture funds: Maine continues to be a flyover State
• Create a more fertile private funding environment for commercialization of Maine’s R&D efforts without burdening the State’s tax revenue

BENEFITS: More money for more Maine companies!!

• Stimulates the availability of funding for innovative companies
• Increases the State’s venture capital (VC) culture and infrastructure
• Increases the number of jobs in high-growth, knowledge businesses
• Elevates the profile of innovative Maine companies
• Creates a competitive investment market in the state
• Leverages investment funds through syndication
• Supports commercialization of R&D efforts
• Matched to State economy

THE PROGRAM:

The purpose of the Innovation Finance Program is to attract more venture capital to innovative Maine businesses. The program provides the Maine Public Employees Retirement System with an incentive to invest in high-quality venture capital funds that evidence both a commitment to seeking Maine investments and the ability to produce favorable returns to minimize the risk of tax credit redemption. This program will increase the supply of venture capital by improving access of innovative Maine businesses to venture capital funds.

Capital is a critical tool in building new technology companies. This program will stimulate funding for technology innovation by leveraging private money. This initiative will fill the funding gap and enable companies to stay and grow in Maine without a direct investment of public dollars.

Thank You:

Thanks to Senator Peter Mills for moving our "Fund of Funds" initiative forward and sponsoring the bill, the Legislature's Business Research and Economic Development Committee, Tim Agnew of Masthead Venture Partners, John Burns of SEGF, FAME, and others for their leadership in promoting this important legistaltion.