By Ron Davis, Reporter, Albuquerque Business First. May 16, 2018, 2:52pm MDT
NMA Ventures Managing Partner Dorian Rader announces her venture capital firm will receive $1.6 million from the Catalyst Fund. (Ron Davis | Albuquerque Business First)
NMA Ventures is the latest to receive a spark from the Catalyst Fund.
Three New Mexico angel investors, John Chavez, Dorian Rader and Sherman McCorkle, created NMA Ventures in 2017. NMA Ventures will receive up to $1.6 million from the Catalyst Fund. That commitment will leverage $2.6 million in funds from NMA Ventures to be invested in New Mexico startups, Gov. Susana Martinez and the New Mexico Department of Economic Development announced at a news conference Wednesday at SolAero Tecnhologies.
“Investing in homegrown New Mexico companies and entrepreneurs strengthens and diversifies our economy,” Martinez said in a statement. “The Catalyst Fund helps our local companies get off the ground and succeed, creating new jobs and opportunities for New Mexicans.”
“We are honored by the support from the state of New Mexico and Governor Martinez to help offer capital to promising startups,” Rader said in a statement. “The Catalyst Fund sends a clear message that this state believes in the success of homegrown businesses and is willing to invest in entrepreneurs from seed to market.”
NMA Ventures will fund “early-stage, high-technology companies” in the state.
“NMA Ventures is live,” Rader announced. “Together, we’re [pooling] our expertise to find tomorrow’s most innovative companies.”
The Catalyst Fund is comprised of $10 million in public funds allocated by the State Investment Council with $5 million from the State Small Business Credit Initiative, and the other half coming from commitments from private institutional investors, according to a news release. Recipients of the Catalyst Fund must provide at least matching private investment.
The Catalyst Fund invests in emerging and existing venture capital funds in New Mexico, and those funds invest in startup companies. It has projected to support over 50 companies in the state.
In May 2017, BayoTech received $1.7 million from Cottonwood Technology Fund and $300,000 from the state of New Mexico. Cottonwood was announced in April 2017 as one of three New Mexico venture funds to receive monies from the Catalyst Fund, according to previous Business First reporting.
Barbara Brazil, deputy secretary of the state’s economic development department, said New Mexico has five portfolio funds, with three of them owned by women.
According to data compiled by Bloomberg, companies in the U.S. received $67 billion in venture capital funding in 2017.
Publication Link: https://www.bizjournals.com/albuquerque/news/2018/05/16/abq-fund-the-latest-to-receive-catalyst-fund-money.html