Illinois House & Senate Pass Legislation to Invest in Illinois

SPRINGFIELD, Ill., July 25, 2011 /PRNewswire-USNewswire/ -- On July 25, 2011, Governor Quinn signed into law SB 107, funding Technology Development Account II (TDA II).  TDA II is an investment fund designated for investment in IL-based venture capital funds with the requirement of supporting investment in early stage Illinois companies.   TDA II will build on the great success and investing structure that has been in place for TDA I since 2003.  This structure includes an experienced manager who selects the best venture and private equity funds to ensure that more Illinois-based growth companies can expand in Illinois.  These growth companies will help stoke Illinois' job creation engine for years to come.  

The success of TDA I is well documented:  

• 37 Illinois companies have received TDA investment.
• Those 37 companies today employ (at least) 1,500 people in Illinois directly – this number is an increase from the 1,200 estimated in September 2010.
• An econometric study shows that each direct venture-backed job results in 2.2 indirect jobs.  These indirect jobs include contract and part-time workers, service professionals, office services, delivery services etc.  Using this multiple of 2.2 times 1,500 direct jobs, TDA investment has driven the creation of 4,800 total jobs.
• Since 75% of venture investments go to payroll, we further estimate that these companies have already paid $8 million in payroll taxes.

SB 107 garnered bi-partisan support in the General Assembly.  Sen. Kotowski (D-Park Ridge) introduced the bill which was supported by Senate leadership and passed early in the legislative session.  In the House, Freshman Rep. Daniel Biss (D-Skokie) tenaciously worked with House Leadership to advocate for passage of this important "Invest in Illinois" initiative.  Freshman Chris Nybo (R-Elmhurst) worked tirelessly with Rep. Biss to add co-sponsors and move the bill forward.  Without the support of Speaker Madigan, Rep. Barbara Flynn Curie (D-Hyde Park) and Rep. Lou Lang (D-Skokie), the program might have been lost for another year.  In all, the House counted 80 co-sponsors of the Legislation.  Governor Quinn and Treasurer Rutherford actively supported passage of TDA II.

A large group of organizations and institutions actively supported the legislation, including the Illinois Venture Capital Association (IVCA), the Illinois Biotechnology Industry Organization (iBIO), TechAmerica and Illinois Science & Technology Coalition (ISTC), Northwestern University, University of Chicago and Illinois Institute of Technology.  

"Illinois is experiencing a renaissance of entrepreneurial activity," said Maura O'Hara, IVCA Executive Director, "It is heartening to know that jobs and companies will not be forced to move to the Coasts to find growth capital.  They can stay in Illinois and create the next big companies right here!"

 For more information, Maura O'Hara can be reached at [email protected] or at 312.201.2886

SOURCE Illinois Venture Capital Association