Arizona Insurance

The compensation fund of the State, a group of workers providing services health insurance for small businesses, introduced new efforts to increase venture capital available to High-Tech Start-up Arizona.

The Fund has announced plans to invest $ 25 million in the next three to five years in an economy based on knowledge of new capital funds would help ensure that new businesses - in the process of creating jobs and strengthening the economy.

The organizers hope that the new fund is to attract, finally, from $ 100 million privatesector investors to help fill a critical gap in the state of economic development. The governor of the Council for Innovation and Technology has a chronic shortage of venture capital as one of the biggest obstacles for Business Development in Arizona.

“This is important because it allows a company to its next phase of growth,” said Janet Napolitano, Dir. “With the creation of a pool of Venture Capital, we are undoubtedly more to see in the spring of Google in Arizona rather than in other countries.”

Compensation Fund State President Donald A. Smith Jr. said fund managers, because “We wanted to do more to improve the business climate in Arizona …. Based on preliminary information, we believe that the commitment of up to $ 25 million in the knowledge economy Capital Fund is a good investment for our policyholders, but also the capital needed for development d ‘greater economy of Arizona.

The transition to the establishment of the new fund, after years of ineffective efforts by the technology sector governmentsponsored to win approval of a program to increase the availability of venture capital in the state. These measures have died in the Arizona legislature, mainly because concerned that taxpayers’ money would be threatened by risky investments.

Although the structure of the new Fund is still under development, the proposal is intended exclusively to a private company that does not rely on state resources or tax credits, said Bill Hardin, co-chairman of the Governor’s Council.

Even in the absence of state support, Hardin is of the opinion, the Fund is sufficiently attractive to investors, he said.

“Regarding the compensation fund said, she felt … It would be good for long-term growth of their own business behind for promoting growth of healthy firms to the state , “Said Hardin. “We hope that other investors will come to the table with the same motivation.”

Other insurance companies, financial institutions, pension funds and private investors are regarded as probably the origin of capital.

The State Compensation Fund wants others for money in the capital, swimming pool to share the risk, “said Duane Miller, the Compensation Fund’s Chief Operating Officer. To further reduce the risk of making funds is less than 1 percent of its own record amount in the Fund, he said.

In addition, the new fund will only invest in other funds investing in start-up ventures, rather than directly in companies themselves - the so-called “Fund of Funds” model. In other funds in the image up to $ 250 million could be available to start-up, “said Miller.

If properly managed, should raise funds yield favourable, “he said. Professional Manager you companies for investment, products need capital, but to achieve fully exploit their potential. Finally, the fund’s investment, or if the company is bought on the stock market, he said.

“Some of these companies are business and some are even break, but some are the biggest winners,” said Miller. “When you add that all, allows a potential attractive return flight.”

The State Compensation Fund of Arizona is the largest supplier of workers, provision of health insurance in Arizona, the protection of injured workers “on the job.