CHATTANOOGA, Tenn. (January 5, 2010) – FourBridges Capital Advisors is pleased to announce that the firm has secured funding for Innova Fund II, LP under the new Tennessee Small Business Investment Company Credit Act, also known as the “TNInvestco Program.”
Under terms of the agreement, FourBridges Capital Advisors acted as exclusive advisor to Innova Fund II, LP in the placement of $20,000,000 of TNInvestco Premium Tax Credits with a large Tennessee-based insurance company.
The TNInvestco Program was signed into law on July 9, 2009. Under guidelines of the program, the State of Tennessee selected six TNInvestcos to receive $20,000,000 each of TN Premium Tax Credits. TNInvestcos were then responsible for selling their tax credits to qualifying insurance companies paying premium taxes in the State of Tennessee. TNInvestcos will use the proceeds from the sale of these credits to invest in early-stage Tennessee companies to cultivate innovation, entrepreneurship, job growth, and general economic development in the State of Tennessee.
Innova Fund II, LP was selected as one of the six TNInvestcos. FourBridges Capital worked on behalf of Innova to first determine the market for its tax credits by contacting over 90 insurance companies. FourBridges then held extensive discussions with interested parties to communicate the program’s unique features and benefits while also uncovering and addressing specific tax and admissibility issues. FourBridges structured and negotiated the final terms for the sale of TN Premium Tax Credits to the Tennessee-based insurer.
About Innova Fund II, LP Based in Memphis, Innova is a pre-seed, seed and early-stage venture investor focused on starting and funding high-growth companies in the biosciences, technology and ag-bio fields across the state of Tennessee. Through its relationship with Memphis Bioworks Foundation, Innova provides entrepreneurs with access to incubator facilities, training and mentoring, industry networks and seasoned executives.
For more information about this transaction, please contact Dewey Hammond at 423-266-4809 or Andy Stockett at 423-266-6979.
FourBridges Capital Advisors is a middle market investment bank providing sell-side, buy-side, capital raising,restructuring, and strategic advisory services primarily to closely-held and family-owned businesses. FourBridges is based in Chattanooga, Tennessee, and serves clients in cities across the Southeast, including Atlanta, Nashville, Birmingham, Memphis, Knoxville and Huntsville.