Investing in Illinois Innovation and Start-Up Companies Will Create Jobs

FOR IMMEDIATE RELEASE

Kotowski: Investing in Illinois Innovation and Start-Up Companies Will Create Jobs

Springfield, IL—State Sen. Dan Kotowski (D-Park Ridge) is sponsoring legislation that will encourage the state treasurer to invest in up-and-coming Illinois companies, creating jobs and improving the state’s business climate.

“The highest priority in Springfield has to be putting people back to work,” Kotowski said. “The average unemployment rate in this state is above 11 percent. If people aren’t working, they can’t afford to pay their mortgages; they can’t go shopping and support local stores; and they can’t support schools, roads, and other vital public services.”

Senate Bill 3655 creates the Technology Development Account II (TDA II). The treasurer’s office will use this account to invest in up-and-coming Illinois companies, primarily those that work with high technology. The treasurer is authorized to put up to two percent of his investment portfolio—money that he would already be investing on behalf of the state—into the TDA II account.

“We need TDA II because the state has already successfully invested all the money in the first TDA,” Kotowski said. “Using the $25 million in the first account, the state attracted half a billion dollars from private investors to 34 Illinois companies, creating more than 3,800 new jobs.”

Kotowski, Chairman of the Senate Commerce Committee, learned about the first TDA account at a special hearing on venture capital in January. In an effort to find ways to spur job growth and improve Illinois’ business climate at little or no cost to the government, Kotowski invited experts in venture capital to attend the meeting in Chicago. He learned that venture capital—the practice of investing in start-up and developing businesses—is a great way to encourage economic development. For example, for each dollar the state invested from its TDA account, it was able to attract 22 dollars in private investment. The state treasury has also seen a healthy rate of return on its investments.

“Investing in up-and-coming Illinois companies is proven to bolster our economy,” Kotowski said. “It encourages innovation and technological development. It also makes us competitive with other states and helps us to keep and create jobs.”

Senate Bill 3655 has passed the Senate Commerce Committee and now awaits a vote in the full Senate.

For more information, contact at Ian Watts 217.782.0591.