Idling Missouri Performance in New Economy Technology Start-Ups Leads to Recommended Actions for State; Following Independent Study by Bloch School at
DATELINE: JEFFERSON CITY, Mo. Nov. 5
JEFFERSON CITY, Mo., Nov. 5 /PRNewswire-USNewswire/ -- A statewide group which has served over the past 6 months as the academic Steering Committee for just-released UMKC research report about Missouri's capital formation needs, today announced its own specific recommendations that Missouri establish a new course of action, based on the Report's results, with greater Missouri State government involvement.
The group calls for three major actions:
-- State should develop a five-year strategy for technology-based economic
development, advised by major technology employers and financiers.
-- Legislature should enact technology business finance programs, based on
best-practices that include an Angel Credit Tax Program, Seed Stage
Co-investment and Proof of Concept support. It should also establish a
long term funding position for the Missouri Technology Corporation,
which is operating under funds from a one-time MOHELA investment.
-- Work with the Governing Boards of Missouri's 116 state and local
pension funds to establish proactive policies for In-State Private
Equity Investment & Economically Targeted Investments.
Published via the "GrowMeState.com" website, the group explained: "The Bloch School's Report has led this Steering Committee to the conclusion that as a State, we must develop a capital formation strategy and aggressively pursue its objectives. In addition, there are particular Seed Stage funding gaps that we can and should immediately address."
The research Report released on October 25th 2007, by Dr. Mark Parry of University of Missouri, Kansas City Bloch School of Business and Public Administration, entitled "Missouri's Need for Risk Capital: An Assessment and Recommendations", identified some very positive facts about Missouri's research capacities, but also detailed some very poor performance in metrics that measured Missouri's entrepreneurship levels and Missouri's ability to attract external risk capital. The Report also compared Missouri's poor relative performance against neighboring states and technologically similar states.
Mitch Robinson, Executive Director of the Cape Girardeau Area MAGNET, and a Steering Committee member stated: "The Grow Me State Initiative is an aggressive plan to provide entrepreneurs the critical capital they need to create jobs, and will provide Missouri legislators a great guideline in development of new programs and tools for Missouri entrepreneurs during the 2008 session."
"This study is the first comprehensive look at the reality of what works in Missouri, what needs improvement, and what path will take us to where we need to be. The Missouri of the future will look little like the Missouri we used to know, but that future will either be bright and better, or cloudy and worse based upon the tough decisions we make today," explained Bob Marcusse, President & CEO of the Kansas City Area Development Council.
"In a competitive resource environment, it's our job here to demonstrate to the decision-makers in Jefferson City why investment into technology-based economic development is an appropriate role for the State. It is important to grow these jobs here, that's why we call it the "Grow Me State Initiative," said Dick Fleming, CEO of the St. Louis Regional Chamber & Growth Association.
The group believes that the recommendations that comprise our Grow Me State Initiative, which require a $17.25 million investment, is on par the average per capita investment made by the Report's benchmarking states, and will begin to shape Missouri's knowledge-based, future economy.
The Steering Committee is comprised of: Jim Andersen, President of Springfield Chamber of Commerce; Jim Baker, Vice President for Research and Economic Development at Missouri State University; Brian Clevinger, Managing Partner of Prolog Ventures; Jay De Long, Vice President of Capital Formation & New Ventures at St. Louis Regional Chamber & Growth Association; Richard C. D. Fleming, CEO of St. Louis Regional Chamber & Growth Association; Tom Henderson, Assistant to Provost of University of Missouri - Columbia; Greg Johnson, Managing Director of Prolog Ventures; Bob Marcusse, President and CEO of Kansas City Area Development Council; Teresa Maledy, President and CEO Central MO Region of Commerce Bank; William Nelson, Managing Director of Prairie Capital Management Inc.; Mitch Robinson, Cape Girardeau Area MAGNET; Joseph Schlafly, Senior Vice President of Stifel, Nicolaus & Company, Inc.; and Scott Zajac, Managing Director at Advantage Capital Partners.
CONTACT: Jay De Long, +1-314-444-1130, cell, +1-314-660-9389, or Gary
Broome, +1-314-444-1171, both for St. Louis Regional Chamber & Growth
Association
Web site: http://www.growmestate.com/
SOURCE St. Louis Regional Chamber & Growth Association