116O.122 SEED CAPITAL FUND.
Subdivision 1. Establishment.
The corporation shall, in consultation with private venture
and seed capital companies and other public and private organizations as appropriate, implement
a centrally managed seed capital fund to invest in early stage companies and small companies
in Minnesota through equity or equity-type investments. The seed capital fund may receive
contributions from the corporation, as well as from local, state, or federal government, private
foundations, or other sources. Total investments by the seed capital fund in seven-county
metropolitan area based companies must not exceed 20 percent of the total capitalization
appropriated by the legislature or provided by the corporation. Investments which contribute to
the 20 percent metropolitan area limitation are those which will primarily enhance the operations
of a metropolitan based facility. Investments that benefit a Greater Minnesota facility of a
metropolitan based company are not subject to the limitation. Investments by the seed capital fund
must be matched by other sources of capital at a ratio to be determined by the corporation. The
seed capital fund shall identify sources of technical, management, and marketing assistance for
companies funded by the seed capital program and make appropriate referrals. The seed capital
fund shall establish a procedure for liquidating private investments.
Subd. 2. Regional seed capital report.
By February 15, the board shall submit to the
legislature and governor an annual report on the activities of the seed capital program.
History: 1991 c 295 s 1; 1997 c 200 art 1 s 62