Governor Janet Napolitano has shown interest in the creation of a state-backed venture capital fund to invest in high-tech Arizona companies, according to remarks made during a recent meeting with a Tucson-based group of about 70 millionaire investors and entrepreneurs.

The governor met with the Desert Angels to seek their input on such issues as venture capital and technology transfer. The Angels evaluate companies as a group, and then decide as individuals whether to invest in them. In the group's history, members have invested a sum of approximately $3 million in seven Arizona companies.

"As we look at the 21st-century economy for Arizona, technology transfer is part of it," said Napolitano, quoted in the Tucson Citizen. "It goes without saying that the Arizona economy is at a tipping point. Either we are able to bring in knowledge-based jobs or we languish with service jobs."

Technology transfer is currently limited by the state constitution, which prohibits state universities from holding equity positions in companies formed around university research.

Napolitano successfully pushed legislation this session to permit universities to exchange research rights for company stock. The measure is awaiting voter approval in the November 2004 election.

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More information:

"Governor likes Ariz. venture fund idea," Tucson Citizen, 6/12/2003