News Summary
Lawmakers in Georgia are reassessing the Invest Georgia venture capital fund, established to support local startups. With around $50 million disbursed since its inception, the fund has contributed to creating over 4,300 jobs but faces scrutiny over its future direction. A study committee is exploring strategies to enhance investment opportunities, including potential tax incentives and regulatory reviews. As the committee prepares recommendations, the focus remains on sustaining Georgia’s vibrant startup ecosystem amidst evolving investment challenges.
Atlanta, Georgia – Georgia lawmakers are currently reassessing the effectiveness of the state-run venture capital fund, Invest Georgia, established in 2013 to promote economic growth through investments in local startups. Originally created with a $100 million allocation, the fund has only disbursed approximately $50 million to date, according to the board chairman, Charlie Thompson.
The Georgia General Assembly formed a study committee, chaired by Representative Todd Jones (R-South Forsyth), to evaluate the success and future direction of Invest Georgia. In a noted effort to spur the state’s economic ecosystem, the fund aims to provide essential capital for businesses poised for growth and development. However, Thompson pointed out that despite Georgia’s thriving startup community, these companies require more investment to scale effectively.
Since its inception, Invest Georgia has allocated funds to 18 venture capital firms, which in turn have invested in 119 Georgia-based companies. As a result of these investments, more than 4,300 jobs have been created across the state, illustrating the fund’s impact on local employment.
Legislation governing Invest Georgia explicitly mandates that the fund’s investments are limited to companies operating within Georgia, reinforcing the focus on local economic development. The financial performance of the fund has been highlighted, showing that each dollar invested by the state-run fund has yielded a return of $1.60. This statistic underscores the fund’s potential for generating positive economic outcomes.
Sean Banks, a partner at TTV Capital, remarked on the significance of Invest Georgia, noting that it played a crucial role in elevating Atlanta’s profile, particularly in the financial technology sector. However, stakeholders like Thompson emphasize the necessity for additional resources to assist businesses in transitioning out of the startup phase and into successful, sustainable operations.
To bolster the effectiveness of Invest Georgia, the study committee is currently exploring various strategies, which may include offering tax incentives. These measures aim to provide local companies a competitive edge and enhance investment opportunities within the state. Additionally, Representative Stacey Evans (D-Atlanta) has proposed a review of regulations governing alternative investments related to the state’s pension funds as a means to increase investment options for businesses.
The study committee is set to compile its findings and present recommendations to the full House by December 31, 2023. The future of Invest Georgia remains uncertain as lawmakers evaluate the fund’s role in the broader context of state economic policy and the ongoing demand for investment capital among local startups.
In conclusion, while Invest Georgia has made notable strides in supporting local businesses and job creation, lawmakers emphasize the need for a strategic reassessment to ensure that Georgia’s startup ecosystem continues to flourish and remains competitive in the ever-evolving landscape of venture capital investment.
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Author: STAFF HERE SAVANNAH WRITER
SAVANNAH STAFF WRITER The SAVANNAH STAFF WRITER represents the experienced team at HERESavannah.com, your go-to source for actionable local news and information in Savannah, Chatham County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Savannah Music Festival, St. Patrick's Day Parade, and Savannah Jazz Festival. Our coverage extends to key organizations like the Savannah Area Chamber of Commerce and United Way of the Coastal Empire, plus leading businesses in aerospace, education, and logistics that power the local economy such as Gulfstream Aerospace, Savannah College of Art and Design, and Colonial Group. As part of the broader HERE network, including HEREAtlanta.com and HEREAugusta.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
