CAPCO stands for Certified Capital Company Program and is a debt-lending company that provides state tax credits as subsidies (which are certain amounts of money granted by the government to enable the commodities or services of a business to stay on the cheap side) on the above-mentioned debt funds.
By 2004, over 1,000 new jobs had been created with another 3,000 retained in the State of New York alone thanks to the success of CAPCO programs. Reportedly, CAPCO had given direct investments of over $150 million in over 115 different companies across over 20 counties in the state. They received over $350 million back and earned much trust and respect from the public as a result. The source who gave this information was the Growth Capital Alliance (or GCA), which was also founded to assist small businesses in regulating their capital funds and spotting governmental loopholes that could be an obstacle to such regulations.
CAPCO was founded in 1997 on the idea of using tax credits as an incentive for encouraging an increase in venture capital markets. A few of their branches include Stonehenge Capital, Wilshire Advisors and Enhanced Capital Partners. They have had much success ever since then for a variety of reasons from technology companies making up half of their investments to the life sciences seeming to make up the rest. Perhaps their second major secret is the fact that they encourage investing with companies in area that are the most in need of them.
What is Venture Capital?
Defined, venture capital is investing over $1 million capital into a very high-risk project, typically a business that is expanding or just getting off the ground. Venture capital is important, first because especially new businesses need a solid financial and management ground to start on and stay running. Businesses that are expanding need more monetary funds in order to obtain the necessary resources for their expansion.
This is also important for investors for the same reason that any other investment is important to the investor. As with any other business, the investor is considered to be a co-owner of the business and risks either losing or gaining money along with the business owner. Also, business owners have to consider whether they are making a wise choice with the individuals who they choose to be investors. Also, even though the risk is considered to be above-average, to the investor, it also promises above-average returns if the business succeeds.