HB 366 Summary

• Establishes a state private investment fund managed by a separate fund board with six members, including three appointed for venture capital expertise and three ex-officio members from state agencies.

• Creates a fund of funds structure modeled after Utah's program that invests in private seed and venture capital partnerships rather than directly in individual companies, with no direct investments allowed.

• Authorizes the Hawaii Strategic Development Corporation to issue and transfer tax credits (amount to be determined) as collateral and guarantees for loans and equity investments to finance the venture capital fund.

• Requires the fund to invest primarily in high-quality venture capital firms with experienced managers capable of mentoring entrepreneurs, with a target of 30 percent of investments in Hawaii-based businesses.

• Establishes investment limitations including a maximum of 10 percent of fund assets in any single venture capital fund and a maximum commitment of 20 percent of any individual fund's total capital.