Latest Tech Fund Bankruptcy Has B/CS ConnectionsNews Tuesday, October 23rd, 2012
Terrabon Inc., based in Houston, had a demonstration plant in Bryan using production technologies developed at Texas A&M University.
AUSTIN, Texas (AP) _ A fourth Texas high-tech startup that received taxpayer money through Gov. Rick Perry’s signature economic development fund has filed for bankruptcy.
Bioenergy producer Terrabon Inc.’s bankruptcy filing in a Houston federal court last month raises the possibility that the state’s Emerging Technology Fund maybe worth less than what taxpayers have invested in it.
The venture-capital-like fund invests in Texas-based high-tech startups.
Terrabon was backed by big Perry political donors and critics questioned the state’s decision to award the company $2.75 million in 2010.
Terrabon’s bankruptcy marks the biggest loss yet for the tech fund’s $194 million portfolio and brings the total amount of failed investments to $5.25 million.
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