Louisiana is set to enhance its support for homegrown tech companies with the launch of the $50 million Louisiana Growth Fund in 2024. Spearheaded by Louisiana Innovation (LA.IO), a new division within Louisiana Economic Development (LED), the fund aims to address a critical funding gap for promising companies needing investments between $1 million and $5 million.
The initiative, led by Josh Allen Fleig, seeks to expedite the distribution of federal dollars to state entrepreneurs and foster the growth of tech-enabled startups. The Louisiana Growth Fund is sourced from the State Small Business Credit Initiative, backed by the U.S. Treasury. Investments will target companies that have demonstrated business plan viability and secured initial private capital, serving as a catalyst for further expansion.
In addition to the Growth Fund, LA.IO will oversee the Louisiana Institute for Artificial Intelligence, intended to harmonize academic, public, and corporate research efforts. The division will also integrate existing LED departments, including LED Corporation, small business services, the tech transfer office, and Louisiana Entertainment.
LED Secretary Susan Bourgeois emphasized the importance of nurturing local talent, stating, "Josh makes a compelling argument that we're not going to be successful just by attracting corporate headquarters here, but by growing our own." The state plans to outsource fund management to an external entity, with a selection expected by the end of the month.
The Louisiana Growth Fund represents a strategic move to bolster the state's innovation economy and capture its share of the next industrial revolution.