The 21 Fund provides financial support to highly innovative Indiana-based companies, thereby helping these firms make the transitional leap from general research and development to product development while also creating high-wage, high-skill, high-tech Indiana jobs and diversifying the state’s economy.

The site also says:

The 21 Fund seeks technology-based companies conducting business in Indiana and provides financial support to make the transitional leap from research to product development. By supporting high-tech companies during this crucial stage, the 21 Fund encourages entrepreneurial success and keeps Indiana’s most promising technologies in Indiana, leading to the creation of the high tech, high-paying jobs of tomorrow. The 21 Fund does not focus on a particular technology or application area in selecting awards. This allows Indiana’s strengths to identify themselves through successful completion of the 21 Fund’s rigorous review process. Avoiding pre-selection of technology focus areas ensures that the 21 Fund plays an unbiased central role in diversifying the State’s economy, a goal outlined in the 21 Fund’s legislation.

Sounds great, right?  Encouraging tech companies to start-up in Indiana, as well as stay here, has always been a minor challenge when compared to the tech start-up hotbeds around the country.  The 21 fund was supposed to be part of the solution to that problem.  Unfortunately, on July 1st, the budget for the 21 fund was cut by $35 million over the next two years.  David Castor, who’s Business and Culture Blog I subscribe to (and link to from the homepage of this site), sums up my feelings on this news:

This is an extremely short sighted move.  It has a negative impact on both attracting and promoting growth for emerging technology businesses – businesses which have proven to be high growth and high profit.  Promoting the success of these businesses leads to an increase in jobs, increase in average incomes, increase in consumer spending, and increase to tax dollars back to the state.  That is economic improvement.

It is odd that in the year of economic stimulus dollars being granted to the state to boost infrastructure and economy, our state takes a position to decrease funding to businesses that truly impact economic improvement.

Short sighted indeed. If anyone out there has some insight on this decision, or an opinion one way or another, please chime in below with a comment.

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1. Free Software For Bloomington Based Tech Start-Ups!