The state of Texas is using the CAPCO investment program to help bring more venture capital investment to the state. Texas is a large state with many undeveloped areas that are anticipating quite a lot of development. Companies in Texas are moving into open areas that have not yet seen real development, and the CAPCO programs help bring companies together to match venture capitalists to companies in need.
#1: How Does The Program Work?
The program certifies every investor in the state of Texas based on their financial situation. Investors around the world have caused problems for their beneficiaries when false financial statements are to enter into a venture capital agreement. Companies that are in need of funding are more likely to find the venture capital they need, and the program helps companies meet on equal terms. A company that once had to look for months to find venture capital can find a venture capital partner in just a few moments.
#2: Are There Incentives?
The incentives in the program vary based on how much each company has put into their venture capital investing. The incentives for each company are a bit different, and the state treasurer tracks the incentives that were earned by each company in the CAPCO program. The CAPCO program does put a limit on certain investments, but each company that requests funds can come back to ask for money in the future. CAPCO is completely open to businesses in need of cash, and the companies that continually fill out applications for funding are likely to find more new partners over the course of time.
#3: How Quickly Are Applications Funded?
Applications for the CAPCO program are funded at the speed the investor can produce the cash. Each investor only puts in what they agree to put in, and the company must wait until payment is rendered by their venture capital partner. The two companies enter into a relationship that is only between the two of them, and the state does not get involved except to check the status of the funding.
The CAPCO program is the only way for some businesses to find the venture capital partners that they need to survive. Venture capital will pay for many things, but using the CAPCO program makes everything move much faster. A company that applies for funding today will likely have that money in the bank before they know it.