By Brook Stockberger SUN-NEWS BUSINESS EDITOR
Apr 24, 2006
Do you have a company that is up and running, in pretty good shape, but without enough money to expand?
Well, New Mexico Community Capital would like to hear from you.
Based in Santa Fe, New Mexico Community Capital is a venture capital fund that has about $9 million on hand and is looking to invest in New Mexico businesses.
Las Cruces businessman John Hummer, the outgoing CEO of MountainView Medical Center, said southern New Mexico needs investment.
"(This will help) local businesses and existing business that have great ideas and great products but have not been able to harness venture capital that allows them to grow," he said.
"It takes venture capital. We all know people in the community who have good ideas and good businesses, but need money to expand."
Jarratt Applewhite, CEO of New Mexico Community Capital, spoke at the Hilton Las Cruces last week to members of the business community as well as New Mexico State University and government officials.
He said that his organization is not looking to help a business get up and running, but is looking for those companies that have already proved themselves, yet do not have the means to grow.
"The fund we have now is focused on providing expansion capital for existing businesses," he said.
"We think there is less risk and we also think the social returns and the job creation is better with later-stage companies."
Las Cruces Mayor Bill Mattiace said the visit was a step in the right direction. "I think anytime that a venture capital investment company comes down to Las Cruces, it is a good signal," he said.
"It says, 'Hey, there's growth in the area.' This'll give small business a chance to expand and create more jobs."
Steve Vierck, president and CEO of the Mesilla Valley Economic Development Alliance, previously talked to the Sun-News about venture capital.
"Venture capital is particularly important in starting and growing high-tech companies," he said.
"It's particularly valuable in an university community like this one." The investments, though, have not exactly flooded the bottom half of the Land of Enchantment.
"I think here in southern New Mexico we are often overlooked," he said. Related news from the Web
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"There are probably a dozen venture capital funds with offices in northern New Mexico. Yet we frequently are not getting the attention this area deserves."
That's why the attention from New Mexico Community Capital is good news. Tom Keleher, managing director with the organization, paid a visit to Las Cruces as part of a swing through the southern part of the state late last year that took him to Deming, Lordsburg and Silver City as well as Las Cruces.
"We're getting the word out that we are looking for businesses to invest in," he said. "I've been meeting with people in the banking community."
He said that his organization hopes to provide a stimulus to positive growth for New Mexico companies that will, in turn, provide community support to the people with which those companies interact.
And, of course, bring back a profit for their investors.
"Some of these businesses, if they could just obtain $250,000 to $500,000, they could take advantage of opportunities out there," he said.
"They could invest a little bit more in the business and hire some more employees."
"That's a really solid way to build up our communities and provide opportunity and hope."