Written by Kotowski Staff Thursday, 04 February 2010 14:51
"We need to do whatever we can to create a healthy business climate that ensures economic vitality and spurs job growth," said Kotowski, the Commerce Committee Chair. Maura O’Hara, Executive Director of the IVCA, gave the example of the Technology Development Account (TDA) as a successful State investment program. Using the TDA, the State invested $25 million through professional venture capital firms. By matching public investments with private investments in high-growth-potential Illinois businesses, the State government attracted $540 million dollars for 34 in-state companies. For every dollar the State invested, private investors contributed 22 dollars. "Research shows that each direct job in a venture-capital-backed company results in 2.2 indirect jobs, showing that TDA investments have created over 3,800 jobs in Illinois," O’Hara said. "I know of no other state program with that level of return on investment or employment growth." The hearing participants discussed the merits of the venture capital and private equity sectors and emphasized the importance of investing in high-growth-potential Illinois companies. "Encouraging the development of innovative Illinois-based businesses should be one of the state’s primary goals," Kotowski said. "These businesses create high-paying, long-lasting jobs. They also help support a healthy Illinois economy, improving the quality of life for everyone."
Chicago, IL—State Sen. Dan Kotowski (D-Park Ridge) convened a special hearing of the Senate Commerce Committee today to highlight the benefits of venture capital and private equity investing in start-up
and existing Illinois companies. The goal of the hearing was to emphasize how the state can partner with private companies to protect existing jobs and create new jobs.
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