Tuesday, October 30, 2012

Fourth company to receive money from Perry’s tech fund files for bankruptcy

Speaking of bankruptcies, I did a search for bankruptcies in Texas and hit this article.  Maybe one daywe'll learn to let companies rise or fall with private money instread of spending my hard earned money I had to fork over to the state government!

Terrabon is the fund’s second bankruptcy in the past four months, losses that severely cut into state estimates that the fund has delivered a $4.5 million return on investment.

The state’s venture capital-like fund has raised concerns about accountability and transparency, including a critical report from the state auditor’s office this past year. Perry’s political opponents have also hammered him over ties between campaign contributors and fund recipients.

Terrabon’s bankruptcy, which was filed in a Houston federal court in September, is the tech fund’s biggest hit to date and brings the total losses of four failed investments to $5.25 million. In the fund’s 2012 annual report released in January, Perry’s office estimated the portfolio’s 133 investments were worth $4.5 million more than what the state had handed out.

When first asked by The Associated Press about the fund’s four bankruptcies apparently wiping out the gains entirely, Perry spokeswoman Lucy Nashed said the annual report was outdated and argued the fund’s value could have increased. She later amended her comment, saying the January report factored in the first two companies to go under in 2010, in what was a combined $2.25 million loss.

But the fund’s financial health remains unclear. Nashed said new figures are not expected until January, and further defended the fund by pointing to $592 million that the startups have collected from private investors.

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