Overview

Established by Illinois Treasurer Michael W. Frerichs, the Illinois Growth and Innovation Fund (ILGIF) is an evergreen, $1.5 billion impact investment fund that invests in ways to attract, assist and retain quality technology-enabled businesses in Illinois. We do this by making targeted investments with venture capital (VC), growth equity, and private credit firms with a nexus to the State of Illinois.

Vision

The Illinois Growth and Innovation Fund aims to invest more than $1.5 billion on a continuing and recurring basis creating an estimated 60,000 jobs per investment cycle.  

MISSION

Through the Illinois Growth and Innovation Fund, the Illinois Treasurer makes targeted investments with venture capital, growth equity, and private credit funds that invest in Illinois technology-enabled businesses. Illinois technology-enabled businesses are defined as businesses that are either based in Illinois or maintain a significant workforce in Illinois. Tech-enabled businesses can be situated in industries such as, but not limited to: agricultural tech, biotech, consumer tech, financial services tech, green tech, health care tech, logistics tech, manufacturing tech, and services tech.

ILGIF GOALS

1. Deliver strong investment performance for Illinois

2. Drive economic development for Illinois

3. Foster a more connected, inclusive and engaged entrepreneurial and venture community in Illinois

4. Support equity, diversity and inclusion to enable worthy fund managers and grow promising technology-enabled companies

5. Integrate sustainability/ESG factors to increase expected financial returns and minimize projected risk

Values

ILGIF seeks to optimize transparency, governance best practices, and alignment of interests when investing. These values are essential to governance and investment outcomes.  

HISTORY

Legally named the Technology Development Account I (TDA I), lawmakers in 2002 authorized the initial round of $74 million in investments to Illinois venture capital firms. TDA I created approximately 6,300 jobs and generated more than $150 million in private investment.

Lawmakers in 2011 authorized a second round of TDA funding, called TDA II. However, the treasury did not act on the authorization for a number of years.

However, in 2015, Illinois Treasurer Michael W. Frerichs used the TDA II legislative authority to establish and launch the Illinois Growth and Innovation Fund initially as a $222 million fund. The fund made its first investments in mid-2016.

In 2018, Illinois Treasurer Michael W. Frerichs announced an increase to the amount of investment capital available in ILGIF, increasing the total to 5% of the State Portfolio, or approximately $1.5 billion in capital available to be invested over the course of 10 years. Furthermore, ILGIF was structured as an evergreen fund designed to allocate capital on a continuing and recurring basis, in perpetuity, to be invested with Illinois venture capital, growth equity and private venture debt investment firms.

ILGIF INVESTMENT POLICY

The ILGIF Investment Policy is designed to ensure that the Illinois Treasurer, as well as any contractors the Treasurer retains to provide services related to ILGIF, take lawful, prudent, and effective actions while supporting ILGIF.  The Investment Policy is designed to allow for sufficient flexibility in the management oversight process to take advantage of investment opportunities as they arise while setting forth reasonable parameters to ensure prudence and care in the execution of ILGIF.

Please click here to access the ILGIF Investment Policy

ILGIF Commitment to Diversity

ILGIF shall seek to identify and invest in fund managers and co-invest in Illinois-domiciled companies that are (i) more than 50% owned and/or led by minorities, women, military veterans, or disabled persons, and/or (ii) geographically located in diverse communities or low-to-moderate income (LMI) communities. 

1. ILGIF managers will provide unaudited quarterly financial statements and capital account statements to 50 South Capital within 60 days of quarter end and audited financial statements within 90 days of quarter end.

2. ILGIF managers shall invest a minimum of twice the aggregate amount of committed capital received from ILGIF in "Illinois companies" during the life of such manager's fund(s) where ILGIF is a limited partner.

   • For example, if ILGIF commits $5.0 million to a fund, the recipient fund must invest at least $10.0 million in "Illinois companies" over the life of the fund.

3. ILGIF managers will provide quarterly reports on the diversification of recipient portfolio companies, including the ownership and management status of recipient portfolio companies with regard to minority, women, veteran and/or disabled status.

4. ILGIF managers will provide quarterly reports on the economic impact of recipient fund investments on the Illinois economy, including the growth of the employee headcount at portfolio companies, the growth of their physical real estate presence in Illinois and other associated economic data.

5. For additional details on reporting requirements for all ILGIF managers, please see the attached Excel file as well as ILGIF's investment policy statement. This is the standardized reporting mechanism for all ILGIF managers to report to 50 South Capital or the Illinois Treasurer (as applicable) on a quarterly/annual basis.

ELIGIBILITY

STEP ONE:  ARE YOU A "VENTURE CAPITAL FIRM"?

A “venture capital” firm makes equity financings that are provided for starting up, expanding, or relocating a company, or for related purposes such as financing for seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital. This includes, but is not limited to, financing classified as venture capital, mezzanine, buyout and/or growth.

If you answered YES to Step One, move on to Step Two below.  If you answered NO, your firm is not eligible for an investment by ILGIF at this time.

STEP TWO:  DOES YOUR VENTURE CAPITAL FIRM

INVEST IN "TECHNOLOGY BUSINESSES"?

A “technology business” means a company that has as its principal function the providing of services, including computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical, or testing services, manufacture of goods or materials, the processing of goods or materials by physical or chemical change, computer related activities, robotics, biological or pharmaceutical industrial activity, or technology oriented or emerging industrial activity.

If you answered YES to Step Two, move on to Step Three.  If you answered NO to Step Two, your firm is not eligible for an investment by ILGIF at this time.  

STEP THREE: IS YOUR TECHNOLOGY-FOCUSED VENTURE

CAPITAL FIRM AN "ILLINOIS VENTURE CAPITAL FIRM"?  

A. Does your technology-focused venture capital firm have a majority (50%+) of its employees in Illinois, or at least one managing partner domiciled in Illinois?  

If you answered YES to (A) above, you are an Illinois venture capital firm and are eligible for an investment by ILGIF.

If you answered NO to (A) above, please refer to question (B) immediately below.

B. Has your venture capital firm invested in at least one "Illinois company" (i.e., a company that is headquartered in or has at least one physical office and one full-time employee in Illinois) in each of its prior funds (on average), or if your venture capital firm has only one prior fund, has it invested in at least two Illinois companies?

If you answered YES to (B) above, you are an Illinois venture capital firm and are eligible for an investment by ILGIF.

If you answered NO to (B) above, you are not eligible for an investment by ILGIF at this time.  

Investments

Select Portfolio Companies

Invest $1.5B on a Recurring Basis

Attract $2B+ Private Investment

Create 60,000+ Jobs

Continue to identify, recruit & recommend MWVD fund managers/businesses

ILGIF ANNUAL REPORT

Each year the Illinois Treasurer publishes an Annual Report highlighting investment activity, economic development, progress on increasing inclusivity within the local venture capital ecosystem, and future initiatives for the coming year for the Illinois Growth and Innovation Fund. The below report highlights all pertinent areas over the prior calendar year.

• 2022 ILGIF Annual Report

• 2021 ILGIF Annual Report

• 2020 ILGIF Annual Report

• 2019 ILGIF Annual Report

ILGIF ANNUAL REPORTING REQUIREMENTS

Each year by law ILGIF is required to report certain data as mentioned in the Technology Development Act, 30 ILCS 265/1 et seq.

• 2022 ILGIF Reporting Information

• 2021 ILGIF Reporting Information

Inside this document you will find the following information:

• Internal Rate of Return for the past one, 3, 5, and 10 years, and since 2016;

• Total Commitment;

• Capital Called;

• Cash Distributions;

• Committed and Uncommitted Value;

• Recipient Funds in IL;

• Recipient Funds outside of IL;

• Capital Invested in MWVD Funds; and

• Commitments by Strategy.

Success Stories

In addition to the aggregate benefits of the program, the Treasurer's technology investments have played a pivotal role in many individual company success stories.  These stories acutely demonstrate how this program fosters economic and job growth while earning enhanced investment returns for the State.

• Cavatari Case Study

Equity, Diversity & Inclusion

Through ILGIF, the Treasurer’s Office actively seeds and anchors new minority-operated venture capital funds furthering the investment objective to foster a more diverse and inclusive manager pool and entrepreneurial community across Illinois. Highlighted within our Investment Policy, ILGIF is committed to the following:

a)     Diversity among Fund Managers –  Promote and encourage the use of businesses owned by or under the control of qualified veterans of the armed forces of the United States, qualified service-disabled veterans, minority persons, women, or persons with a disability (“MWVD Persons”) and sets forth the aspirational goal of directing 25% of the total dollar amount of funds under management, purchases of investment securities, and other contracts to businesses owned by or under the control of MWVD Persons.

b) Diversity among Portfolio Companies – ILGIF seeks to identify, recruit, and recommend fund managers that have demonstrated experience and/or an express ability to invest in (a) portfolio companies that are more than 50% owned and/or managed by minorities, women, military veterans, or persons with a disability, and/or (b) portfolio companies geographically located in diverse communities or low-to-moderate income (“LMI”) communities. A company is in an LMI area if it has an office in a census tract deemed “underserved,” with 20% or more of the population beneath the poverty line or earning a median family income of 80% or less than the metropolitan area’s median family income (per the standards of the Federal Financial Institutions Examination Council).

mwvd manager intiatives

Select mwvd-led funds

ILGIF SELECT PORTFOLIO COMPANY SERIES

Illinois Treasurer Michael Frerichs is committed to investing in companies that create and retain jobs in Illinois, to both grow the state’s economy and create meaningful and well-paid careers for residents. In 2016, the Illinois Treasurer’s Office introduced the Illinois Growth and Innovation Fund (ILGIF), the goal of which is to attract, assist, and retain quality technology-enabled businesses within the state. The Treasurer’s office strategically invests in venture capital managers, that make targeted investments in technology-driven enterprises. The ILGIF is an evergreen, $1.5 billion impact investment fund, which makes 10-15 fund investments annually. The Treasurer’s office emphasizes the importance of fund managers whose staff and portfolio companies are both diverse.

The numbers articulate the economic impact. The portfolio companies’ stories featured here articulate the human impact.

2023 ILGIF Annual Summit

Illinois State Treasurer Michael W. Frerichs invites you to attend our seventh ILGIF Annual Summit to be held in person on Thursday July 27th, 2023. This in person event will be held from 1:00pm - 5:00pm and includes remarks from Illinois Treasurer Michael W. Frerichs, an update on the growth of the ILGIF portfolio over the last 12 months, and a series of presentations with leading venture capitalists and thought leaders to discuss the state of innovation, entrepreneurship, and venture capital in Illinois.

The ILGIF Summit has become known as an important industry event and an effective forum for meeting with investors, organizations and entrepreneurs to develop, build and maintain long-term relationships. We welcome you to register and learn more about the companies that are driving growth and innovation in Illinois.

Additional registration can be found on the ILGIF Summit Website.

2023 ILGIF Summit scheduled for July 27th, 2023.

ILLINOIS Growth and Innovation Fund initiatives

The Illinois Treasurer’s Office is a proud supporter of the following initiatives to drive sustainable change and transparency in our investments.

HELPFUL LINKS

Below are several helpful links to additional information on entrepreneurship and the venture capital/private equity industry.

STAKEHOLDERS

FUND INVESTMENT

If you are an "Illinois venture capital firm" with a track record of investing in Illinois technology businesses and meet the criteria for consideration by the Illinois Growth and Innovation Fund, please complete the submission form below.

Info for Tech Companies

If you are a privately-held company in Illinois seeking to grow your business and connect with a fund manager participating in the Illinois Growth and Innovation Fund, please complete the submission form below.

Eligible technology businesses are companies that have as their principal function the provision of services, including computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical, or testing services, manufacture of goods or materials, the processing of goods or materials by physical or chemical change, computer related activities, robotics, biological or pharmaceutical industrial activity, or technology-oriented or emerging industrial activity.

ADDITIONAL QUESTIONS?

Please feel free to send any questions or inquiries to the below email address:

Investments@illinoistreasurer.gov