West Virginia Executive Summer 2019 | Page 68

SPECIAL ADVERTISING SECTION (304) 345-6200 www.wvjit.org A Drive for Success in West Virginia Economic Impact WVJIT currently has 20 companies in its portfolio ranging from education technology, biotechnology and aquaculture to automotive products, Fintech and health care. A study that evaluated the economic contributions by WVJIT’s portfolio companies from 1999-2011 concluded that they created: • $104,429,000 in total industry output • $44,404,000 in gross state product • $32,940,000 in total employee compensation • $3,765,000 in total state and local taxes • 814 jobs Capital Partners To date, INNOVA has worked with more than 500 companies and entrepreneurs and placed more than $2.9 million of direct investments into 18 companies. Fifteen of those companies attracted an additional $6,658,000 in follow-up investments. On average, for every $1 invested by INNOVA, these companies were able to attract an additional $2.23 in follow-up funding, including out-of-state venture capital, providing the opportunity to retain 100 jobs and create 32 new positions. Early stage investment capital is a vital and critical component of a healthy business climate due to its contribution to rapid economic de- velopment and growth in state, re- gional and national economies. Risk- based equity capital stimulates and facilitates technological advances and products into the market place, thereby enhancing innovation, pro- ductivity, employment growth and wealth creation. This type of capital is often viewed as a catalyst to tech- nological innovation and advance- ment across many business sectors that results in economic growth and the transformation of economies. The West Virginia Jobs Investment Trust (WVJIT), West Virginia’s ven- ture capital fund, operates with the goal of investing in entrepreneurs, funding development, growing companies and creating jobs. “Entrepreneurs are the future of West Virginia,” says Michele O’Con- nor, WVJIT investment manager. “They drive economic growth and will help diversify the state’s economy. For us, success is seeing a company go to the next level. That is defined differently for each company, but creating jobs and generating revenue are always considered successes.” With pressure on the budgets of many state agencies, organizations such as WVJIT and INNOVA Com- mercialization Group, an initiative of the High Technology Foundation, are stepping up to provide debt capital to startups and growing companies. WVJIT’s proven method of structuring investments and loans that are in the best interest of the fund and the company allows for transaction flexibility and the ability to act as a long-term investor and partner. The group also provides non-financial resources such as collaborative networking, technical assistance, corporate consulting and strategy development/execution. “At one point, all new technologies were research, all companies were startups and all successful enter- prises went through predictable and predefined stages of funding at