2013 Session

Budget Amendments - HB1500 (Committee Approved)

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CIT Cyber Security Accelerator

Item 423 #1h

Item 423 #1h

First Year - FY2013 Second Year - FY2014
Innovation and Entrepreneurship Investment Authority FY2013 $0 FY2014 $2,500,000 GF

Page 364, line 13, strike "$5,782,500" and insert "$8,282,500".
Page 365, after line 25 insert:  
"M.1.  Out of the amounts in this item, $2,500,000 the second year from the general fund shall be provided to establish a cyber-security accelerator which will be managed by the Center for Innovative Technology (CIT).  CIT is directed to recruit companies for the Accelerator regionally and any participating company must agree to start and operate their company in the Commonwealth.  Participating companies will be guided through a company initiation and development process supported by key cyber-security professionals, investors and technologists.  
2. Companies participating in the Accelerator will be eligible to receive an initial $25,000 investment from the Accelerator Fund.  Upon graduation from the program, they may be eligible for an additional investment of up to $100,000 from the Center for Innovative Technology's GAP Fund.  Any proceeds from the sale of equity in these companies shall not revert to the general fund but shall be used to support the Accelerator.
3.  The Center for Innovative Technology shall report to the Chairmen of the House Appropriations and Senate Finance Committees as well as to the Secretaries of Commerce and Trade and Technology by September 1, 2013 with a detailed proposal for the implementation of this program and shall report within 30 days of receipt of the initial round of applications for funding under this program."

(This amendment provides $2.5 million in the second year from the general fund to establish a cyber-security accelerator program within CIT. Virginia would receive national recognition as the first cyber-security dedicated accelerator in the nation. It is expected that approximately 10 new high growth companies will be created annually from this investment, with annual sales expectations of over $50.0 million per company. These high-wage employment opportunities will help offset the loss of federally-supported positions throughout the Commonwealth.)