VC News

New Mexico Firms Would Receive $30M in Venture Funding

New Mexico might be close to closing on two venture deals worth a combined $30 million, the Albuquerque Journal recently reported. The New Mexico State Investment Council (SIC) gave preliminary approval of the $30 million to two Santa Fe-based firms early last month. Flywheel Ventures, one of the two companies in consideration for the money, was said to be raising its own $30 million for investment in seed and early-stage technology companies. Rio Grande Venture Partners, the other beneficiary, would indirectly contribute to tech firms through a $100 million fund it hopes to close this spring. The New Mexico investment program requires that both companies provide match funding and do business in the state, either whole or in part.

The state has committed roughly $168 million to about 20 venture capital funds over the last decade, with $70 million in commitments made since 2003, the Albuquerque Journal states. The $168 million comes from a pool of $200 million for venture capital investment, drawn from New Mexico's $3.5 billion severance tax permanent fund. With approval of the two new deals, something SIC will consider at its May 25 meeting, the state will have committed the entire balance of money available for 2004. Because of the ever-changing market value of the severance tax fund, however, the available pool of money would not be exhausted. In addition, some earlier investments may expire, resulting in millions of unused dollars.

For more information on SIC, visit http://www.state.nm.us/nmsic/.

Minority Business Roundtable Forms New Venture Fund

Small, minority- and women-owned businesses around the country can expect to benefit from the newly-created Minority Business Roundtable (MBRT) Venture Capital Fund, Inc. For these groups, the Fund means a source of early-stage venture capital that fully intends to generate returns on investment. The Fund already has taken equity in three companies and plans to invest in 15-20 new companies each year.

Business, financial and community leaders, invited as potential board members, convened last month to formally recognize the MBRT Venture Capital Fund. Founding partners of the Fund include Artemis Strategy Fund, Inc. and the Corporate Finance Institute, Inc.

"Historically, relatively little capital has been available for small and minority businesses, even in an entrepreneurial climate," said Rebel Holiday, president of the MBRT Venture Capital Fund and the Artemis Strategy Fund. "(The Fund) will seek small, minority- and women-owned businesses that have developed proprietary products, strong margins, and excess rate of return, exceptional management, near-term revenues, and strong potential for stock liquidity."

More information on the Fund is available at http://www.mbrtventurecapitalfund.com/.