TLDR: Virginia, investment funds in new economic development push
– Virginia launches a new economic development initiative using federal grant money and venture capital funding
– The “Virginia Invests” program will direct $40 million of a $176 million grant to seven venture capital funds
Virginia is launching a new multimillion-dollar economic development initiative that aims to use a federal grant with matching funds from venture capital firms to fund small businesses, Gov. Glenn Youngkin said Monday. The program, called “Virginia Invests,” will direct $40 million of a $176 million grant from the U.S. Treasury’s State Small Business Credit Initiative to seven venture capital funds. These funds will then match the money dollar for dollar for Virginia-based funds, and $1.50 for every dollar for out-of-state funds, creating a pool totaling around $100 million. The goal is to help Virginians with innovative business ideas and support small businesses already in operation to grow and thrive.
The initiative aims to bring together investors, venture capital firms, and small businesses in Virginia to address the challenge of accessing capital that many small businesses face. This program will not only provide financial support but also mentorship, advice, and networks that can help these businesses succeed. Gov. Youngkin expects each dollar from the original Treasury grant to generate $10 of additional investment as the businesses grow and attract more funding. The program is part of the State Small Business Credit Initiative, a federal fund program to support small businesses and entrepreneurship across the U.S.
The federal grant money, won by Virginia in 2022, is being channeled through the Virginia Innovation Partnership Corp., which will work with venture capital partners and small businesses to provide necessary capital and support. The rest of the grant will go towards additional small-business investments. Gov. Youngkin, who has experience in the investment sector, highlighted the importance of this initiative in leveraging funding and supporting the growth of small businesses in Virginia.
