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Florida's new Opportunity Fund seeks seed and early stage VC firms

comment from theodore tanner jr: i hope they raise enough money and also that they shorten the time horizons for investments in high technology areas if they want to attract the talent to support the investments.

Florida's new Opportunity Fund seeks seed & early stage VC firms
January 23, 2009
TALLAHASSE, FL - To expand on the success of venture capital investments in Florida, the State has created the Florida Opportunity Fund, a multimillion-dollar program that directs investments to high-performing venture funds committed to seed and early stage businesses.

The program is designed to build upon the successful Florida investment activities of leading national venture capital investors such as Kleiner Perkins Caufield & Byers, Benchmark Capital and Sycamore Ventures.

These firms provide capital to companies focused on developing cutting edge technologies like surgical robotics design, business intelligence software, defense and aerospace applications, and green methods to create new products out of recyclables.

The Florida Opportunity Fund seeks to further establish the State as a hub of innovation as it seeks a larger share of the billions invested nationally from fund managers, particularly at the seed and early stage.

Strategic sectors targeted
The program will seek to grow the availability of venture capital funds for companies in strategic sectors such as life sciences, clean energy, homeland security, aerospace and defense, information technology and advanced manufacturing.

In turn, it will seek to serve as a platform for creating new companies with high-wage jobs.

“The State is rich with early stage investment opportunities that can attract the interest of venture capital funds alongside other high-profile firms that have invested in Florida,” said Christopher Fountas, general partner with MILCOM Venture Partners (MVP).

The Florida Opportunity Fund is a fund of funds established by Enterprise Florida pursuant to Florida’s Capital Formation Act and is managed by Florida First Partners (FFP) – a joint venture between MVP, a leading Florida venture capital fund manager, and the Credit Suisse Customized Fund Investment Group (CFIG), the global investment bank’s primary private equity fund-of-funds investment team.

Enterprise Florida is an economic development partnership between business and government leaders and is the principal economic development organization for the State.

Fourth largest tech employer
In the United States, Florida is the fourth largest employer in the high-tech industry – with more tech jobs than every other state but California, Texas and New York, according to the report Cyberstates 2008 by AeA, the American Electronics Association.

The State has one of the largest homeland security and defense industries, with nearly $11 billion Department of Defense Prime Contract Awards in 2006, according to Enterprise Florida.

And Florida, which ranks among the top 10 biotech states in a recent report by Ernst & Young, is poised to see tremendous job growth with the addition of Scripps Florida in Palm Beach County, the Burnham Institute for Medical Research in Orlando and The Torrey Pines Institute in St. Lucie County.

Nearly 700 venture capital deals have closed in the State since 2000, resulting in more than $6.4 billion in total venture capital spending, according to Enterprise Florida.

Seeks long term returns
“This program seeks to realize significant long-term returns from funds making investments in early stage Florida opportunities,” said CFIG investment professional Mel Carter.

"But ultimately, it’s more than just a catalyst for investors. The program’s activities are expected to attract additional venture capital for entrepreneurs and companies active in Florida’s high growth sectors, which will energize the State’s economy.

“By providing incentives, like the Florida Opportunity Fund, we hope to increase the amount of innovation that occurs within the State.

This will ensure that Florida’s workforce and economy are diverse, vibrant and competitive for years to come,” Lt. Governor Jeff Kottcamp said about the program funded by the Legislature.

FLORIDA OPPORTUNITY FUND APPLICATIONS
In evaluating firms that apply for the first series of investments from the Florida Opportunity Fund, FFP will consider a variety of factors, including funds with a track record of strong returns, an interest in seed projects or early stage companies, and a willingness to work with startups developed through Florida university and research institutions.

Eligible firms must have offices in the State or a history of investing in Florida companies.

The first series of applications from state, regional and national venture capital firms to be considered for funds from the program will be accepted through January 30, 2009.

Interested participants from the venture capital community should visit the program’s Web site at www.floridaopportunityfund.com.