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HOUSE OF REPRESENTATIVES             H.R. NO.              
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  RESOLUTION

SUPPORTING THE EFFORTS OF THE HAWAII STRATEGIC DEVELOPMENT
   CORPORATION TO PROMOTE AND FURTHER HIGH TECHNOLOGY ENDEAVORS
   IN THE STATE.



 1       WHEREAS, technology is the driving force in the modern
 2   United States (U.S.) economy; and
 3   
 4       WHEREAS, the high technology industry is critical to
 5   economic development, employment, and diversification in the
 6   State, providing vast opportunities in such areas as
 7   information technology/telecommunications, biotechnology,
 8   medical/healthcare technology, and earth/ocean/space sciences;
 9   and
10   
11       WHEREAS, to ensure that Hawaii maintains a leadership
12   position in the rapidly expanding high technology industry, it
13   must continue to invest in and support programs and agencies
14   that have been instrumental in the development of new
15   technologies, products, and applications, and technology-based
16   ventures; and
17   
18       WHEREAS, the Hawaii Strategic Development Corporation
19   (HSDC), which was established in 1990, has played a pivotal
20   role in providing venture capital to fledgling companies in the
21   State; and
22   
23       WHEREAS, by leveraging public funds with financing provided
24   by local and offshore venture capital companies, HSDC has
25   provided the start-up equity capital that is needed by
26   innovative entrepreneurs; and
27   
28       WHEREAS, through HSDC's Venture Capital Investment Program,
29   businesses are provided a range of financing at varying levels
30   of development, from very early seed-stage to established
31   later-stage companies; and
32   
33       WHEREAS, to date, HSDC has committed $5,250,000 to five
34   limited partnerships, which provide equity and/or debt
35   financing to seed-stage or later-stage companies; and

 
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 1       WHEREAS, due to the efforts of HSDC in making a $450,000
 2   investment in Digital Island three years ago through HMS
 3   Investments Limited Partnership (L.P.), a local venture capital
 4   firm, the State's stock assets from Digital Island is now worth
 5   $25,000,000; and
 6   
 7       WHEREAS, HSDC has been particularly effective in advancing
 8   high technology endeavors by strengthening its working
 9   partnership and relationship with the University of Hawaii to
10   assist in its venture capital-oriented commercialization
11   efforts; and
12   
13       WHEREAS, invencor, inc., which serves as the manager of the
14   general partner of International Venture Fund I, L.P., is the
15   newest organization to partner with HSDC; and
16   
17       WHEREAS, invencor, inc. and International Venture Fund I
18   provide venture capital expertise and manage the investment
19   funds provided by the limited partners, which include HSDC, the
20   State of New Mexico, Silicon Valley Bank, and other investors
21   from Hawaii and the U.S. Mainland; and
22   
23       WHEREAS, through its expertise in areas such as information
24   technology and biotechnology, and its ability to work with
25   entrepreneurs to help ensure the commercial success of their
26   businesses, invencor, inc. is a major contributor to HSDC's
27   efforts to further expand Hawaii's venture capital industry;
28   now, therefore,
29   
30       BE IT RESOLVED by the House of Representatives of the
31   Twentieth Legislature of the State of Hawaii, Regular Session
32   of 2000, that this body supports the efforts of HSDC to promote
33   and further high technology endeavors in the State; and
34   
35       BE IT FURTHER RESOLVED that certified copies of this
36   Resolution be transmitted to the President of HSDC and the
37   Chairperson of the HSDC Board.
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41                         OFFERED BY:  ____________________________