Ohio Workers’ Compensation Invests in Venture Capital Funds

The Ohio Bureau of Workers’ Compensation recently announced $30.5 million in venture capital funds to invest in advanced technology companies. Seven firms will receive up to $5 million to invest in biotechnology, advanced materials, fuel cells, and polymers. The new investments in venture capital firms are intended to increase the Bureau’s earnings, diversify its portfolio, and strengthen Ohio’s businesses.

Contact: Sam Leiken
Social, Economic and Workforce Programs Division By Linda Hoffman

http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_7217,00.html

Of the $14 billion in the Ohio Workers’ Compensation Fund, approximately 2 percent is earmarked for venture capital firms that invest in private companies, while approximately 60 percent is placed in fixed-income securities. Over the past five years, the Bureau of Workers’ Compensation had an average annual return on investments of 5 percent, with a 16 percent return on investments for 2003.

The investment in venture capital firms parallels Governor Bob Taft’s Third Frontier Initiative, which has directed $11.5 million into venture capital projects based in Ohio since 2000.

* Ohio Bureau of Workers’ Compensation Press Release http://www.ohiobwc.com/home/current/releases/2004/072604.asp