Texas

And With That The Texas Startup Fund Is Gone

Texas Startups

With a new Governor in place in Texas and the former Governor, Rick Perry, preparing for a Presidential Bid, many wondered what would happen to the Emerging Technology Fund, a fund, that by all accounts, supported Texas’ startup boom. Under the Perry administration we saw startup hubs form and dominate in Austin, Dallas and Houston, in part because there was money to attract young startups in a resource rich state.

The Emerging Technologies Fund was replaced by a “governor controlled researcher recruitment effort” According to the Star Telegram, new Governor Greg Abbott (not the guy who sang Shake You Down) this new fund will be used to lure researchers like Nobel Laureates to the great state of Texas. At the same time, eliminating the fund that helped attract startups.  There is $40 million dollars earmarked for the Governor’s new fund.

“I commend the Texas Legislature for passing legislation that will allow us to make great strides toward my goal of elevating our higher education system, and ultimately creating better jobs and more opportunity for all Texans,” Governor Abbott said in a prepared statement.

Private funds have stepped up to fill the void of the emerging technologies fund. Darlene Boudreaux the Executive Director of Tech Fort Worth’s business incubator says the end of the fund won’t be devastating to the startup scene. “They can now fund deals of $2 to $5 million, where five years ago, the ETF was about the only option to get those companies off the ground,” she said about Angel networks across the state.