According to our good friends Eric Gregg and Allen Maurer at TechJournalSouth, the Georgia Research Alliance is launching a new venture fund (details below). A good move, although I think the amount invested by the state is on the small end. A lot of the research coming out of the universities will require significant amounts of capital (biotech, cleantech, nanotech, etc.) Even though they are getting 3-to-1 matching funds from the private sector, it could/should be more.

Georgia launching venture fund
January 15, 2008
ATLANTA–Georgia is launching the Georgia Research Alliance Venture Capital Fund, Gov. Sonny Purdue told a Georgia Chamber of Commerce Meeting.

The fund will partner the state with private sector dollars to give companies formed around Georgia research university IP early stage financing.

The state is investing $10 million in the fund which will be matched 3-to-1 by private dollars.

This doesn’t help non-research-based ventures at all, but all boats rise with the rising tide, as they say. I still would like to see the state reconstitute and overfund the ATDC’s seed fund, however. It is time they got serious about boosting early-stage fast-growth deals in the private sector. Don’t get me wrong - governmental involvement is very rarely the solution to a problem. But in this case, I think they can send a strong signal, and play an integral role.

I referred a media contact of mine to the ATDC not too long ago. I completely envisioned a role whereby he could offer internal media/public relations consulting services to ATDC portfolio companies. Think about the tremendous advantage that having a free public relations expert at your disposal would bring to a typical startup. I think the ATDC folks liked the idea, but unfortunately, they are a government entity, and are thus susceptible to the normal budgetary constraints that you would expect.

Come on, Sonny. Let’s get it done.  The ATDC has some great ideas for the future, but the impact that they will inevitably have on the regional economy will be directly correlated to their operating budget and their ability to engage the private sector.

Cheers.