1. A. In making investments pursuant to the Venture Capital Program Act, the authority shall make:

   1. (1) investments in venture private equity funds; or
   2. (2) early stage investments in New Mexico businesses whose investments or enterprises enhance the economic development objectives of the state.

2. B. The authority is authorized to make investments in New Mexico businesses to create new job opportunities and to support new, emerging or expanding businesses in a manner consistent with the constitution of New Mexico if:

   1. (1) an investment in any one business does not exceed ten percent of the balance of the venture capital program fund;
   2. (2) an investment in any one industry does not exceed thirty percent of the balance of the venture capital program fund; and

   3. (3) the investments represent no more than fifty-one percent of the total investment capital in a business; provided, however, that nothing in this subsection prohibits the ownership of more than fifty-one percent of the total investment capital in a New Mexico business if the additional ownership interest:

      1. (a) is due to foreclosure or other action by the authority pursuant to agreements with the business or other investors in that business;
      2. (b) is necessary to protect the investment; and
      3. (c) does not require an additional investment of the fund.
3. C. In making investments pursuant to the Venture Capital Program Act, the authority may make differential rate investments for economic development purposes.
4. D. The authority shall make investments pursuant to the Venture Capital Program Act only upon approval of the board of directors of the authority and within guidelines and policies established by the board.

History: Laws 2022, ch. 21, § 4; 2023, ch. 127, § 3.

ANNOTATIONS

The 2023 amendment, effective June 16, 2023, revised investment guidelines; in Subsection B, deleted former Paragraph B(1), which provided "the investments are made in conjunction with cooperative investment agreements with parties that have demonstrated abilities and relationships in making investments in new, emerging or expanding businesses", and redesignated former Paragraph B(2) as Paragraph B(1), and added a new Paragraph B(2); and added a new Subsection C and redesignated former Subsection C as Subsection D..