CAPCO Programs

Through Louisiana’s CAPCO program, Advantage Capital Partners and the Louisiana Tech Fund invest $3 million in ArcMail Technology:

SHREVEPORT, La., Jan. 8, 2008 (GLOBE NEWSWIRE) — Advantage Capital Partners, the Louisiana Technology Fund and other investors today announced participation in a $3 million funding round for ArcMail Technology, a leading provider of email archiving and management technology. The funding will be used to support the company’s marketing and product development needs.

“As email volume and storage problems continue to rise, effective message management becomes more critical,” said Todd Gates, president of ArcMail Technology. “The funding from our investors will allow us to grow our staff, fine tune our products and reach out to more customers in need of an email archive solution.”

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John Neis from Venture Investors Management defends the Wisconsin CAPCO program saying the audit was flawed:

Madison, Wis. – In the aftermath of a critical state audit, a prominent venture investment executive is defending the economic development work being done by the state’s Certified Capital Companies.

John Neis, co-founder and senior partner of Venture Investors Management, LLC, said the findings of the Legislative Audit Bureau are incomplete and provide a distorted picture of the work being done by the so-called CAPCOs, which include Venture Investors, Banc One Stonehenge Capital Fund Wisconsin, and Wilshire Investors, LLC.

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This article from The Chamber Report announced that $200 million will become available to small Texas businesses through the CAPCO program.  The Chamber’s Technology Business Council strongly believe it will increase business successes in Texas:

When the 78th Legislature passed legislation authorizing state-certified venture capital companies, a.k.a. CAPCOs, the Chamber’s Technology Business Council (TBC) applauded.

The TBC has supported funding for all stages of business development, particularly early investment funding for companies in North Texas. The council and the regional life sciences alliance, BioDFW, host a monthly breakfast series on technology issues. Stonehenge Capital Company LLC and Advantage Capital Partners discussed the Texas CAPCO Program at the BioDFW Breakfast Series in October. Both investment firms will be CAPCO investors in 2005.

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Paul Ballard and Byron Beasley discuss in-depth the Texas CAPCO Program and its benefits in Texas Business Review:

As the Texas economy continues its expansion from the 2001 recession, the need for seed and growth capital for young companies is intense. Unfortunately, venture capital funds and angel investors are often the only sources of funds for entrepreneurs. In the aftermath of the “dot-com” boom and bust, venture funds are much more risk-averse than they were a decade ago. The result is an enormous need for capital among startup companies in Texas that otherwise have few funding options.

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Birmingham Business Journal announces the start of Alabama’s CAPCO program and Enhanced Capital Partners’ interest in opening an office in Birmingham:

A new state program that seeks to generate more dollars for startup businesses by giving tax credits to insurance companies that invest in venture capital firms has begun.

Alabama’s CapCo (certified capital companies) program, approved during the recent legislative session and signed into law April 18, was to have started July 1. But the state agency charged with writing the rules that govern the program delayed implementation to give more time for public input.

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The Birmingham Business Journal reports that over the span of ten years, $100 million will be invested through the Alabama CAPCO program:

A long-delayed state program that will provide a much-needed shot of venture capital for Alabama startups is finally under way. The program, signed into law nearly two years ago, provides $100 million in premium tax credits over the next decade to dozens of insurance companies that invest in certified capital companies, or CapCos. The six authorized CapCos, each run by one in-state and one out-of state venture firm, will reinvest the funds in qualified Alabama businesses seeking money to grow.

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Under the Texas CAPCO program, Advantage Capital Partners raised  millions of dollars to be invested in small businesses that meet certain criteria:

AUSTIN, Texas — Advantage Capital Partners has raised approximately $23 million under the Texas Certified Capital Company (CAPCO) program for investment in qualified small businesses.

“We look forward to investing in promising companies with solid growth prospects, companies that will create jobs and increase demand for goods and services from other local businesses,” said Steven T. Stull, Advantage’s president. “Experience in several states around the nation has shown that CAPCO investments attract additional venture capital dollars from outside the area to support entrepreneurs and their businesses, resulting in a more diverse and stronger local economy.”

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Pamela Leavy from the Tampa Bay Business Journal discusses the introduction of Advantage Capital Partners as a venture capital company in Florida’s CAPCO program:

New on the venture capital block is Advantage Capital Partners LLC, located in a suite on the 24th floor of the AmSouth Bank building in downtown Tampa.

Tim Cockshutt is principal of the national firm’s Florida office which signed, sealed and delivered its first venture capital deal in September 1999. A little more than $2 million went into the coffers of Control Center LLC in Orlando, manufacturers of power generation equipment.

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The Journal of Multistate Taxation and Incentives discusses in-depth the importance of CAPCO programs and its success in economic development:

The “certified capital company” (CAPCO) program provides a framework for states to foster local entrepreneurship and lends itself to modifications in response to industry trends, thus giving states a new tool with which to address the priorities of the small-business sector and the states own economic development goals.

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Lynne W. Jeter reports in the Mississippi Business Journal that state technology leaders are lobbying for CAPCO legislation to be adopted:

State technology leaders are lobbying legislators to adopt CAPCO (certified capital companies) legislation in 2004 to spur capital investment in Mississippi and to move the state toward increased access to risk capital. If passed, CAPCO legislation would provide incentives in the form of insurance premium tax credits to boost investment in the state.

“The single greatest need that we hear our state`s start-up and early stage small businesses cry out for is investment capital,” said Mississippi Technology Alliance (MTA) president and CEO Andy Taggart. “We have a wealth of terrific ideas, inventions, innovations, and the like, but we have a real dearth of dollars in our state to chase the deals arising out of all that valuable intellectual property. CAPCO legislation would create a $100-million pool of investment capital in our state to go to work in our state, and we believe the results would be the rapid growth of the innovation economy of Mississippi.”

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