2013 Session

Budget Amendments - HB1500 (Conference Report)

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CIT Cyber Security Accelerator

Item 423 #1c

Item 423 #1c

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 program 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. It is the intent of the General Assembly that this funding shall be used to defray capital expenses of company formation for not fewer than ten companies. Funding from this item shall not be available to any company for longer than two years. As part of the reporting requirements identified within paragraph D of this item, the Director of the Center for Innovative Technology shall provide a detailed report on the number of companies and jobs created pursuant to this additional funding.  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 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 ten 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.)