BOND WOULD STRENGTHEN SMALL BUSINESS DEVELOPMENT

Proceeds would capitalize revolving investment fund

AUGUSTA – A $5 million bond, proposed by Senator Justin Alfond of Portland, to support the Maine Venture Fund received a public hearing in the state’s Appropriations Committee today.

Sen. Justin Alfond of Portland

“For nearly two decades, the Maine Venture Fund has strategically invested in small companies across Maine,” said Alfond. “Maine Venture Fund success stories include companies like: Gelato Fiasco, Sea Bags, Blue Tarp Financial and Coast of Maine.”

The Maine Venture Fund is a professionally managed venture capital fund that invests exclusively in Maine companies that demonstrate a potential for high growth and public benefit. The Fund has been actively investing in Maine companies since 1997, and has received $13 million in capital contributions from the State of Maine.

The Fund has invested in 67 companies over the last two decades, and currently has 26 companies in its portfolio. The Fund has managed to a number of successful profitable exits, which replenish the Fund. Unlike MTI, MVF does not receive an annual appropriation. MVF has received its capital investment from the State periodically as funds are dedicated to it.

The Appropriations Committee will be holding a work session on the bill, “LD 100, “An Act To Authorize a General Fund Bond Issue To Help Small Businesses,” in the coming weeks. If approved, the bond measure will go to the voters of Maine for their approval.