Investment board has $881M impact on state economy
March 7, 2006
Oklahoma City – Results from a recent study by a Phoenix- based economic consulting firm show a state authority created to build Oklahoman’s venture capital industry has had a nearly billion dollar impact on the state’s economy.
The study, conducted by Applied Economics estimates the Oklahoma Capital Investment Board has had an impact of $881.3 million on the Oklahoma economy as a result of its 13 year administration of two programs – the Venture Investment Program (VIP) and Oklahoma Capital Access Program (OCAP) .
The Board’s Venture Investment Program is the largest component in terms of impact on the economy. According to the report, the 19 Oklahoma companies that received capital from Board-supported funds provided 7,100 jobs over the multi-year period and $157.8 million in payroll.
The Board’s OCAP program has assisted 760 mostly small and medium-sized companies since its inception in 1992. Of those 760, 331 provided enough information for the study to calculate their impacts. These 331 companies created 1,175 new jobs and $33.1 million in payroll.
“We are obviously pleased by the results of this study, although not surprised,” said OCIB President Devon Sauzek. “We have always believed these programs would bear fruit. By encouraging the growth of the local venture capital industry we create jobs and diversify our state’s economy.”
Besides the direct economic impact of the two OCIB programs, the study reports a more significant economic impact as a result of the multiplier effect. According to the report:
- The total impact of companies in the VIP on the state of Oklahoma was $695.7 million in increased economic activity, 10,600 jobs and $252.5 million in payroll. This includes jobs and payroll at participating companies as well as jobs and payroll at other businesses.
- The total economic impact of the OCAP including additional supported jobs and payroll at other local businesses was $185.6 in increased economic activity, 2,100 jobs and $61.3 million in payroll.
Sauzek added the OCIB, which is a public trust with the State of Oklahoma as the sole beneficiary, will share the results of these findings with legislative officials and community leaders in the coming months.
About OCIB
The Oklahoma Capital Investment Board is the State of Oklahoma’s institution for building the private venture capital industry in Oklahoma. Since 1993 the Board has supported investment in sixteen venture capital funds, which in turn have attracted investment of over $100 million to Oklahoma projects. In addition, the board has supported over $38 million in development loans to over 1300 small Oklahoma companies.
Contacts:
Kym Koch Thompson
(405) 831-8668