Since 1979, the Massachusetts Technology Development Corporation has made equity investments in start-ups that might not have found funding otherwise — mainly relying on taxpayer money. The goal of the quasi-public corporation is to nurture entrepreneurship and create jobs in Massachusetts. and the MTDC says that its portfolio companies today employ 7,500 people in the Commonwealth, with a payroll of $612 million. But while the MTDC hasn't invested a staggering sum over its lifetime (about $83 million in 133 companies), and it boasts a 16.5 percent internal rate of return, its future always seems to be in doubt, given its reliance on money from Beacon Hill.
This summer is no different, says Jerry Bird, who took over last month as executive director. "The legislature approved $5 million for us about a year-and-a-half ago, but it's not yet in our bank account," says Bird. The hang-up? While the state has already issued bonds to raise the money, there's a technical issue related to freeing up that money to make equity investments, Bird says.
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Author: Scott Kirsner
