Material science good investment for our economy

After making just two investments worth $12 million in two independent venture funds in two years — when at least $60 million was available — the State Investment Council is sharpening its focus on new ventures.

That vision is especially important in a state suffering from a severe case of economic myopia, where nine of the top 10 employers are federal and state government.

Last week, the SIC made its first major investment in a venture fund that targets startups in the material sciences, vets the need for those new technologies and makes the connections to bring great advances to market. California-based Phoenix Venture Partners will get $10 million from the SIC toward the $100 million fund it is putting together.

In addition, the SIC approved a new program to provide capital for eight to 10 micro funds, with each providing at least 50 percent in matching funds. Projections are for a minimum of $30 million, possibly up to $40 million or more, available for startup companies statewide.

Some of that money is unused, leftover federal stimulus cash. SIC spokesman Charles Wollmann says “the program is aimed at addressing the existing gap in New Mexico’s ecosystem at the seed and early stage investment levels.”

And it wisely includes key risk-reduction measures, including drawing 50 percent of the funds from the U.S. Treasury and private investors.

Phoenix’s managing general partner Zach Jonasson says “we see New Mexico as a geographic center of excellence for material science.”

It is a logical investment in a state with three national research labs and three research-based universities — and it is an initiative championed by Gov. Susana Martinez.

It should be the first in a long line of smart investments to diversify, and thus strengthen, the state’s economy.

— Albuquerque Journal