4th State-Backed Tech Firm Goes Under
A fourth company that received taxpayer money from an economic development fund controlled by Gov. Rick Perry has filed for bankruptcy. It’s the biggest loss yet for the $200 million Texas Emerging Technology Fund.
In 2010, Terrabon Inc. was given $2.75 million from the tech fund. The investment was met with criticism by some watchdog groups, which pointed out that the company’s backers were large Perry donors.
An analysis by the Associated Press is now questioning whether this recent failure means the Emerging Technology Fund has now spent more money than it has brought in.
A report released by Perry’s office in January estimated the fund’s investments were worth $4.5 million more than the state had invested. A Perry spokeswoman says the Terrabon bankruptcy doesn’t mean the fund has gone into the red.