The Illinois State Treasurer's Office encourages innovation, job growth, and business expansion through the Technology Development Account (TDA). With $75 million invested in Illinois venture capital firms, the State has helped to bolster the high-tech, venture, and start-up sectors in Illinois.  Indeed, the TDA has helped create and grow 26 Illinois companies, providing good-paying jobs in Illinois' technology community. We continue to look for new ways to boost this important part of our economy.

To receive more information from the State Treasurer's Office, contact Technology Development Account Administrator Brace Clement at (312) 814-1699 or bclement@treasurer.state.il.us.

What is the purpose of the TDA?

Authorized by the General Assembly in 2002 (30 ILCS 265), the purpose of the TDA is to attract, assist, and retain quality technology businesses in Illinois. The creation of the TDA allows the state to bring together, and add to, Illinois' rich science, technology, and business communities.

How does the TDA work?

The TDA is a "fund of funds," allowing the Treasurer to invest in Illinois venture capital firms that invest in technology businesses which are seeking to locate, expand or remain in Illinois. Financing may be used for expenses such as seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital. The Treasurer considers a venture capital firm  for investment only after it has been thoroughly reviewed and recommended by a competitively selected external advisor and a volunteer professional, non-partisan external advisory board.

Why do you invest in venture capital firms instead of technology businesses?

This fund-of-fund approach enables the TDA to diversify its investments and protect the State from risks associated with investing directly in start-up companies, while still creating a pro-growth and entrepreneurial business environment. 

What do you consider a technology business?

We cast a wide net. We define a technology business as a company that primarily provides computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical or testing services; manufacture of goods or materials; the processing of goods or materials by physical or chemical change; computer related activities; robotics, biological or pharmaceutical industrial activity; or technology oriented and emerging industrial activity.

What venture capital firms are eligible for funding?

To be eligible for consideration by the TDA, a venture capital firm must have a majority of its employees in Illinois or at least one managing partner domiciled in Illinois. Additionally, the TDA is only permitted to place money with Illinois venture capital firms who use their best efforts to seek investments in technology businesses wanting to locate, expand, or remain in Illinois.

How much money is available?

The Technology Development Account began in November of 2004 with an initial allocation of $50 million. In August of 2006, the account was expanded to $75 million, or roughly 1 percent of the state portfolio.

Success Stories

Zorch International, Inc.

Have you been Zorched lately? That's the term clients of this prominent brand agency use to describe appropriate merchandising. Whether creating AT&T golf balls or Citigroup piggy banks, this Chicago-based company owes its fast-paced growth to Ceres Venture Fund, a woman and minority-owned venture capital fund based in Evanston that works with the Treasurer’s Office. Thanks to an influx of cash from Ceres in 2006, Zorch has generated 27 new jobs in Illinois and posted 400 percent annual growth. It ranked No. 28 on INC magazine's 2007 listing of the 500 fastest-growing companies in the nation and is the fastest-growing Illinois company on that widely regarded roster.

The SAVO Group

The SAVO Group is a pioneer in the still-emerging "sales-enablement" field. This Chicago-based company supplies customized on-demand software to sales teams at some of the nation's largest companies – from FedEx Kinko's to Morgan Stanley. The SAVO product simplifies the creation, tracking and management of marketing materials so sales people can spend less time pushing paper and more time closing deals. This award-winning company has seen revenues continuously grow by 40 percent for each of the past seven years and has doubled its employee base to nearly 70 jobs.

Contact us

To receive more information from the State Treasurer's Office, contact Technology Development Fund Administrator Brace Clement at (312) 814-1699 or bclement@treasurer.state.il.us.