TNInvestco funds sell tax credits to raise $85M for early and mid-stage Tennessee companies

TNInvestco funds sell tax credits, raise $85M

NASHVILLE, Tenn. — The sale of state tax credits by six venture capital funds selected for the TNInvestco program has raised $85 million for investment in Tennessee companies.

According to a news release from the state Economic and Community Development Department and Department of Revenue, Tennessee issued $120 million in insurance tax credits that can be used between 2012 and 2019.

The six companies that were selected for the TNINvestco program received $20 million in credits each and then sold those credits at a discount to insurance companies. They will use the money raised from the sale to invest in Tennessee companies in the early and middle stages of development.

The six participating TNInvestco funds are Tennessee Community Ventures Fund, XMi High Growth Development Fund, Limestone Fund, Tri-Star Technology Fund, Innova Fund II, and Council & Enhanced Tennessee Fund.