Media Inquiries: For all MAVA media inquiries, please contact us at 703-506-9300 or email email@example.com.
Check back regularly for news, coverage, and announcements about MAVA.
The Center for Innovative Technology GAP Funds cemented its mantle as one of the region’s most active early-stage investment groups earlier this month when the number of companies in its portfolio surpassed 100.
That marks a rapid pace of investment for any organization that’s not even a decade old, but it’s particularly notable since a majority of those deals have come in just the past four years.
In that time, Virginia’s lawmakers have ramped up financial support for the funds and their mission of investing in technology, life sciences and clean technology companies around the state.
From 2005 to 2009, CIT GAP Funds was allocated roughly $500,000 in each year’s budget — enough money to make just a handful of deals. In subsequent fiscal years, however, that number has climbed to $1.5 million in 2010, $2 million in 2011, $5 million in 2012 and $4.2 million last year.
“They do get what the fund is about and what we’re trying to achieve. The commonwealth as an entity focused right now on economic development is very strongly stepping up its interest and investment in high-growth entrepreneurship. Most of that centers around technology,” CIT’s chief executive Pete Jobse said.
But when it comes to economic development, venture capital investments are a gamble. A state-sponsored fund can pour thousands of taxpayer dollars into a company that may never take off or even stay in business.
Still, a number of government entities are taking the risk in hopes at least some of the start-ups will blossom into big businesses with hordes of tax-paying employees. Those deals could also yield a financial return if the fund eventually cashes out on its investment.