15E.61 - FINDINGS -- PURPOSE.
15E.61 FINDINGS -- PURPOSE.
1. The general assembly finds the following: Fundamental changes
have occurred in national and international financial markets and in
the financial markets of this state. A critical shortage of seed and
venture capital resources exists in the state, and such shortage is
impairing the growth of commerce in the state. A need exists to
increase the availability of venture equity capital for emerging,
expanding, and restructuring enterprises in Iowa, including, without
limitation, enterprises in the life sciences, advanced manufacturing,
information technology, alternative and renewable energy including
the alternative and renewable energy sectors listed in section
476.42, subsection 1, paragraph "a", and value-added agriculture
areas. Such investments will create jobs for Iowans and will help to
diversify the state's economic base.
2. This division is enacted to fulfill the following purposes:
a. To mobilize private investment in a broad variety of
venture capital partnerships in diversified industries and locales.
b. To retain the private-sector culture of focusing on rate
of return in the investing process.
c. To secure the services of the best managers in the venture
capital industry, regardless of location.
d. To facilitate the organization of the Iowa fund of funds
in which to seek such private investment and to create interest in
such investments by offering state incentives for private persons to
make investments in the Iowa fund of funds.
e. To enhance the venture capital culture and infrastructure
in the state of Iowa so as to increase venture capital investment
within the state and to promote venture capital investing within
Iowa.
f. To accomplish these purposes in such a manner as to
minimize any appropriations by the state of Iowa.
g. To effectuate specific, measurable results, including all
of the following:
(1) The creation of three new venture capital fund offices in
Iowa within three years of February 28, 2002.
(2) The investment of resources from the Iowa fund of funds in
Iowa businesses within three years of February 28, 2002.
(3) A cumulative rate of return on venture investments of the
Iowa fund of funds equal to a minimum of one and one-half percentage
points above the ten-year treasury bill rate in effect at the end of
five years following February 28, 2002. Section History: Recent Form
2002 Acts, ch 1005, §1; 2002 Acts, ch 1006, §13, 14; 2006 Acts, ch
1142, §16; 2008 Acts, ch 1032, §201
Referred to in § 15E.63