Governor Signs Bill to Boost Capital for Tech Start-ups

Gov. Pat Quinn on July 25 signed legislation that will boost start-up capital for emerging technology companies in Illinois. State Rep. Chris Nybo (R-41st, Lombard) sponsored and helped unanimously pass Senate Bill 107 on the final day of the spring legislative session. 

The measure will allow the Illinois State Treasurer to invest 2 percent of its investment portfolio in private capital funds to attract, assist and retain technology entrepreneurs in Illinois. 

"Expanding access to business capital is a critical measure as we fight our way out of this recession, because it will help companies get started, grow their operations and create more jobs,” Nybo said. “Illinois has been consistently criticized for its shortage of venture capital and private equity for entrepreneurial endeavors, and this bill will partially remedy that problem without any expenditure or loss of tax dollars.”

The Illinois State Treasurer’s investment portfolio will allow about $160 million to be invested in emerging Illinois businesses, Nybo said. The legislation partners the public and private sectors by providing the core capital and making start-up businesses more attractive to other investors.  

All investment decisions are made by a private-sector administrator with an advisory board, of which all are precluded from receiving investments from the fund.

“The technology sector in Illinois will stand to significantly benefit from this public-private partnership joining private investments side-by-side with the Treasurer’s capital,” Nybo said. 

Quinn signed SB 107 at the Merchandise Mart, joined by elected officials, community leaders and representatives from Illinois’ business and technology sectors.