State fund OKs $1.6M for startups

The state-backed Catalyst Fund has approved a $1.6 million commitment to NMA Ventures, a new fund planning to invest in early-stage technology companies across the state.

New Mexico Angels President John Chavez, former Angels Vice President Dorian Rader and Angels board member Sherman McCorkle partnered together to launch NMA Ventures. They have raised $4.2 million in commitments, including the Catalyst money, said Rader, now NMA Ventures’ managing partner.

They plan to invest between $200,000 and $400,000 in eight to 10 startups over the next three years.

The Catalyst Fund launched in 2016 with $10 million from the State Investment Council and $5 million each from the U.S. Treasury Department and private investors. The fund is pumping that money into eight to ten venture funds that invest in early-stage New Mexico startups.

Funds receiving Catalyst money must match the state’s commitments dollar-for-dollar, making at least $40 million in new money available for startups.

This article provided by NewsEdge.