The Ohio Venture Capital Authority began a formal search Friday for a manager to run a proposed $100 million fund aimed at Ohio-based startup companies.
"Adequate venture capital is a critical component in attracting high-tech, high-wage and high-growth companies that form the foundation of the knowledge economy," said Ohio Development Director Bruce Johnson.
The department on Friday issued a request for proposals seeking a manager for the fund. Responses are due Sept. 30, and a manager will be selected by the end of the year, said Will Indest, technology investment coordinator for the Department of Development.
The manager of the Ohio Venture Capital Fund will be responsible for raising money from investors - up to $100 million - which would be placed with venture capital funds. Of that money, 75 percent must be placed with Ohio-based venture funds, and at least half must be invested with Ohio-based startup companies.
Investors would be paid off with the gains from investments in the startups.
If gains don't occur, the investors would instead receive state tax credits. The state is authorized to issue up to $20 million in tax credits annually for five years.
Indest said the manager could be an individual or a company. He said there has been strong interest in the position.
The request for proposals is available on the authority's Web site (http://www.odod.state.oh.us/tech/ovca/).
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