The Effectiveness of State Venture Capital Programs

Daniel Sandler, Professor at the Faculty of Law, University of Western Ontario and an acknowledged expert in tax policy has authored an article for presentation at a symposium in May to examine best practices for states in establishing and operating state-sponsored venture capital programs.

"The US Venture Capital industry is not a national phenomenon. It is highly localized, concentrated primarily on the northeast and southwest coasts. Recent statistics indicate that while the geographic dispersion of venture capital fundraising and investment has increased, it remains concentrated, with many states raising little capital and receiving little investment. Due to the geographic concentration of the formal venture capital industry, a number of states—particularly in the nation’s mid-section—have introduced a variety of programs in order to promote a local venture capital industry."

An advance copy is published here because many state legislatures are currently in session and may find the information of value in considering the options available:
NASVF Stories & Studies Database http://www.nasvf.org/web/allpress.nsf/pages/12444

Editor’s note: NASVF Staff is currently engaged in collecting data for a compendium of state-sponsored or state-incented programs for capital formation, to be unveiled at a May 18th symposium in D.C. If you believe such programs in your state might be overlooked, please let us know.

George Lipper [email protected]