Growing Texas Businesses

Objective:

Create jobs and economic vitality in the State of Texas by investing, under the rules of the Texas CAPCO program, in Texas-based, early-stage companies with the potential for growth in revenue and in jobs.

Texas CAPCO Program Overview:

  • The CAPCO program is an economic development program created by state legislation to increase investments in small businesses located within the state.
  • A CAPCO (Certified Capital Company) is a state certified venture capital fund.
  • The sponsoring state allocates premium tax credits to the investors in the CAPCOs.
  • Insurance companies invest in the CAPCOs through debt instruments that combine tax credits and a cash return
  • The CAPCOs make investments in small businesses located within the state.
  • The new businesses create jobs for the local economy and provide both direct and indirect economic benefits to the state.