$35 MILLION INCENTIVE PLAN FOR TECHNOLOGY SENT TO CRIST

Florida lawmakers Tuesday finished creating a $35 million package of incentives aimed at commercializing the state's technology and solving one of the biggest obstacles for infant companies -- money.

The bill would establish a $29.5 million Florida Opportunity Fund that would choose from venture firms in and outside the state for investment. They would have to show a track record of investing in Florida startups before getting any cash.

On Monday, Senate President Ken Pruitt, R-Port St. Lucie, called commercializing the state's wealth of technology the "fourth leg of Florida's economic stool" and said it ultimately would create high-paying jobs and stimulate the tax base.

"We are truly creating a new economy for the state of Florida," Pruitt said.

The package received unanimous support from both legislative chambers. The Senate signed off on the deal Tuesday, sending the proposal to Gov. Charlie Crist for approval.

"It's always good to encourage people to invest in Florida," Crist said.

The incentives package also sets aside $4 million in matching grants to help market technology developed at state universities and calls for creation of an institute in South Florida for commercializing research. Companies formed to bring Florida technology to market could showcase it there for potential investors and entrepreneurs.

"The idea is to have a showroom," said state Rep. Gayle Harrell, R-Stuart.

As the bill -- which also contains $1.5 million to pay startup and operational costs -- worked its way through committees, supporters pointed to the state's $310 million investment in a Florida campus for The Scripps Research Institute. The Jupiter-based campus has already helped attract other biomedical research institutes and is expected to produce spinoff companies from its research.

"Obviously we have done a lot with respect to research, and one of the components that's been missing has been getting products to the point of commercialization," said Jack Sullivan, president of the Florida Research Consortium.

At least eight other states have state-funded programs to help spur venture capital investment.

Venture capitalists have tended to put their money in more mature startups that have made at least some sales. As a result, very early-stage companies have complained that a capital gap exists in Florida in which they can't find the backing they need to get beyond the concept stage.

There are about 30 venture capital firms headquartered in the state, but few invest in infant companies.

"A grad student or an entrepreneur putting something together in a spare bedroom -- those ideas can be very interesting, but they fall below the radar," said Craig Burson, managing director of H.I.G. Ventures in Miami.

The institute concept drew lukewarm reaction. Burson said it would make it easier for potential investors to cover the best of Florida's technology without traveling to each school.

But John Fraser, director of technology transfer at Florida State University, said venture capitalists like to see scientists in their environment.

"They want to see the faculty and the laboratory where the action really happens," Fraser said. ''It's a local-contact sport.''

Staff writer S.V. Date contributed to this story.

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Incentive details

The $35 million incentives program:

- Establishes the Florida Opportunity Fund and sets aside $29.5 million for early-stage venture capital funds. It also allows for $500,000 in start-up costs.

- Creates the Institute for the Commercialization of Public Research to help commercialize products developed at the state's universities and colleges. The bill sets aside $100,000 for initial expenses and $900,000 for operational costs.

- Forms a state University Research Commercialization Assistance Grant Program and sets aside $4 million for start-up companies based on university technologies.

Source: House Bill 83