SSTI Digest

Startup Colorado recently announced the launch of a new $200,000 fund to support events that strengthen the entrepreneurial communities across Colorado. The organization will issue grants to Colorado organizations planning events, seminars and contests that bring together startup communities, particularly those in the Denver-Boulder region, Colorado Springs and Fort Collins, according to the Denver Business Journal. Project applications must be focused on driving entrepreneurship and innovation with the intent of becoming sustainable. Initial financial support for the fund has come from several prominent Colorado entrepreneurs, and a partnership with the Entrepreneurs Foundation of Colorado intends to sustain the program through future contributions. Read more about the fund...

While public debate rages over the role of surveillance in our society, one particularly infamous government surveillance technology, drones, is being prepared for private sector deployment in the U.S. Drone-related technologies are predicted to revolutionize commerce in the U.S., with industry projections valuing their initial deployment as an $82 billion boost to the national economy. In preparation for Federal Aviation Administration (FAA) rollout of drone-use regulations in 2015, entrepreneurs, multinational corporations and state governments are scrambling to be in a competitive position to benefit.

This week, Colorado legislators approved the launch of an advanced industries acceleration program that would provide grants for proof-of-concept, early stage capital and retention, and infrastructure. HB 13-1001 would create the program, which would make $150,000 to $500,000 awards to support commercialization in key industries. A separate bill, HB 1193, would launch a new five-year, $300,000 export program within the state's international trade office to help export products developed under the acceleration program. Gov. Hickenlooper proposed the programs in January (see the January 16, 2013 issue) and is expected to sign both bills. Learn more about the program...

Chris Coburn, the founding executive director of Cleveland Clinic Innovations, is leaving at the end of May to join Boston-based Partners Healthcare, the largest healthcare system in Massachusetts.

Mary Jo White has been confirmed by the Senate as the new head of the Securities and Exchange Commission.

Marcel Valois has been nominated for executive director of the Rhode Island Economic Develop Corporation by Gov. Lincoln Chafee.

Erik Mitisek has been named the CEO of the Colorado Technology Association, effective April 29.

Richard Sutton has been named executive director of the South Carolina Commission on Higher Education.

Investing money from the state's pension fund, Colorado will partner with local CEOs and technology companies to create a $150 million VC fund to help get local tech startups off the ground, according to multiple news sources. The fund, expected to launch by summer, would be run by a consortium of business leaders who would contribute around $10 million each, while the state would be the largest LP, contributing money from pension funds, according to an article in TechCrunch. Colorado's fund would focus purely on tech and span all stages of funding, the article states. Read more...

The second installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Colorado, Nebraska, Nevada, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin. Our first installment was in the Jan. 9 Digest.

Colorado
Gov. John Hickenlooper, State of the State Address, Jan. 10, 2013

“We also ask that you pass House Bill 1 ... bipartisan legislation that will support ‘advanced industries’ in Colorado. ...

“... The second annual COIN Summit, hosted by the Colorado Innovation Network, will take place in August. We will convene national and international stakeholders to discuss technology, workforce development, higher education and our state's brand”

Initiatives aimed at commercializing research were among the most common technology-based economic development approaches in 2012 for states seeking faster returns and job growth during a slow recovery. In the new legislative session that began last week in Colorado, lawmakers introduced a bill to increase access to capital for new startup companies in advanced industries aimed at accelerating the tech commercialization process.

In comparison to most of its peer states, Colorado's workforce excels in educational attainment and entrepreneurship, according to the first Colorado Innovation Index. The index, published by the Colorado Innovation Network, evaluates Colorado's economy in relation to seven benchmark states, including Arizona, California, Massachusetts, New York, North Carolina, Texas and Utah. Only Massachusetts had a higher percentage of Bachelor's degree holders in its workforce, and only Massachusetts and New York had a higher percentage of graduate degree holders. The report includes data on the state's talent, research, capital and entrepreneurship resources. Download the index...

Caren Franzini, the CEO of the New Jersey Economic Development Authority, stepped down after leading the agency for 21 years. Michele Brown, Gov. Chris Christie's appointments counsel, will take over as CEO.

Karen Merrick has joined the Iowa Innovation Corporation as CEO. Merrick previously had been with the Iowa Economic Development Authority.

Thomas Dann, the founder and managing director at CastleHaven Advisors, a Washington, D.C., private-equity firm, was named managing director of the Maryland Venture Fund.

Baiju Shah, the president and CEO of BioEnteprise, is leaving to become the CEO of BioMotiv, a drug development company that spun out of University Hospitals.

Unlike last year when a wave of new governors pushed sweeping proposals to re-organize economic development activities and grow the economy, the 2012 legislative sessions brought mostly modest changes for tech-based initiatives. While many programs were level funded or received smaller increases than in previous years, a handful of states increased funds or introduced new initiatives to support economic development efforts. Colorado lawmakers provided additional funds to attract new companies, Connecticut lawmakers expanded programs from last year's Jobs Bill, and in Virginia lawmakers accepted the governor's amendments to add funds for research and commercialization initiatives.

Tom Walker is departing i2E to join TechColumbus as CEO. Walker, a founding member of i2E, has served the private nonprofit for 14 years. Walker replaces Tim Haynes, who has been serving as interim CEO.

Mark Herzog will step down as executive director of the Virginia Biotechnology Association on June 1. Herzog will serve as senior vice president for corporate and government affairs at Health Diagnostic Laboratory, a Richmond-based company that conducts clinical tests.

Mississippi Gov. Phil Bryant named Brent Christensen executive director of the Mississippi Development Authority. For the past 10 years, he has served as president and CEO of the Gainesville Area Chamber of Commerce in Florida.

James Grunke has been named the president and CEO of the Missoula Economic Partnership. Grunke has been the interim director for the past six months.

Steve VanNurden has been named president and CEO of Fitzsimons Redevelopment Authority, beginning in late May. VanNurden currently is chair of Mayo Clinic Ventures.

As many states near the mid-point of their 2012 legislative sessions, we thought it would be a good time to take a look at some of the bills advancing in statehouses that could impact states' efforts to improve economic conditions. Several states are seeking to advance access to capital initiatives as they continue to struggle with declining revenue and tight credit restrictions. The following overview provides a sampling of TBED bills supporting access to capital, R&D enhancements and higher education standards.

Providing Access to Capital

The Arizona Senate approved last month a bill to empower the state to facilitate $250 million in loans to manufacturers and other businesses by allowing third parties to sell income and insurance premium tax credits to venture capital firms, banks and other lenders, reports The Arizona Capitol Times. Supporters say the program, which has been employed at the federal level over the last decade under the New Markets structure, has been adopted successfully by nine other states. The measure awaits action in the House.