Rick Perry’s $4.5 Million Friend

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Shortly after his previous company declared bankruptcy in 2008, a guy named David Nance started up a new venture, Convergen LifeSciences Inc. He himself invested only $1,000 in Convergen, but was able to get the company off the ground with a $4.5 million investment from a venture capital fund.

Venture capital folks usually prefer founders to have a wee bit more skin in the game than that, but this was a very special venture fund: the Emerging Technology Fund, a $200 million fund created by Rick Perry to invest taxpayer money in Texas startup companies. And David Nance was a very special founder: he had donated more than $100,000 to Perry’s campaigns over the previous decade. So even though a regional panel turned down Nance’s original application, when he appealed to a statewide advisory committee his application was approved unanimously.

More details here, based on reporting from the Austin American-Statesman here. Apparently this came up as an issue in Perry’s last campaign, but details were sparse at the time and the American-Statesman’s reporting only surfaced a couple of months ago. As always, it’s good to have friends in high places.

Via Mark Kleiman.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

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