A Nebraska bill that would increase funding aimed at attracting more startup companies to state is getting support from successful entrepreneurs.
The Omaha World-Herald reports that Evan Luxon, co-founder of Centese, was among those who testified Wednesday in support of a bill that would increase funding in the Nebraska Business Innovation Act. The $4 million in additional funding would bring total funding to nearly $10 million annually.
Luxon said his small but growing medical equipment company, now based in his hometown of Omaha, would still be in San Francisco if not for the program that began eight years ago to help entrepreneurs.
"It gave us traction," Luxon said of the funding.
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Supporters of Legislative Bill 334 say the extra state funding would encourage more startups in Nebraska.
State Sen. John Stinner of Gering, who introduced the bill, said that the program has been "incredibly successful," leveraging about $4.50 in private investment for every $1 provided by the state.
"We need to address the lack of capital to help high-growth businesses, especially technology-related businesses, get started in Nebraska," Stinner said.
The program provides matching seed money for companies, as well as funds for production of product prototypes, research and microenterprises.
The $4 million in new funding would come from ending the state's Angel Investment Tax Credit Act, which some lawmakers believe has outlived its usefulness.