PROVIDENCE – The R.I. Commerce Corporation Monday authorized a $3 million investment in the Slater Technology Fund’s new venture capital fund for Rhode Island energy sector startups.
The investment came from the Renewable Energy Fund, a pool of money generated by charges on Rhode Island electricity bills, of which a portion must be spent on the commercialization of early-stage energy companies.
Before the Slater investment, the Renewable Energy Fund balance stood at about $10 million and at times the quasi-state Commerce Corporation has struggled to find worthy investments in which to deploy the capital.
In Slater’s new energy fund, the Commerce Board of Directors saw a chance to take advantage of Slater’s investment expertise while leveraging private capital the firm is raising for the new fund.
The fund is expected to be $8 million in total with the Commerce Corporation being a limited partner, William J. Ash, managing director financial services of the Commerce Corporation told board members.
“I think it is a good use of the money if you can nurture businesses and create jobs,” said board member Stanley Weiss.
Citing new U.S. Securities and Exchange Committee rules, Slater Managing Director Thorne Sparkman, who briefed board members in an earlier subcommittee meeting on the deal, declined to discuss whether investments have already been lined up or when the new fund is expected to close.
