4th bankruptcy in Texas gov's tech startup fund pushes losses past reported gains
10/23/2012AUSTIN, Texas — A fourth Texas high-tech startup that received taxpayer money through Gov. Rick Perry's signature economic development fund has filed for bankruptcy.
Bioenergy producer Terrabon Inc.'s bankruptcy filing in a Houston federal court last month raises the possibility that the state's Emerging Technology Fund may be worth less than what taxpayers have invested in it.
The venture-capital-like fund invests in Texas-based high-tech startups.
Terrabon was backed by big Perry political donors and critics questioned the state's decision to award the company $2.75 million in 2010.
Terrabon's bankruptcy marks the biggest loss yet for the tech fund's $194 million portfolio and brings the total amount of failed investments to $5.25 million.