With its decision last week to contribute $3 million in Renewable Energy Fund cash to a new investment vehicle that the Slater Technology Fund is setting up, the R.I. Commerce Corporation is dipping its toes back into the water of direct investing in Rhode Island companies. And we all know where the last big venture along those lines ended up.
But this investment is not 38 Studios.
To begin with, the size of the contribution to Slater Fund – which is looking to build an $8 million fund to invest in Rhode Island energy-sector startups – is not near the scale of the support given to Curt Schilling’s failed video game company.
Second, this money was just sitting in the bank. The Renewable Energy Fund balance was $10 million before this decision was made, and it was designed to be spent on the commercialization of early-stage energy companies.
And lastly, the entity making the decision on which companies to invest in is the independent, nonprofit Slater Fund, which has a very good record of recognizing and supporting companies started here that have potential to grow into something more.
We have seen a number of innovative, local ventures in the energy market on the verge of breaking out of startup mode. This step to support Slater in its efforts to help them break out is more than appropriate. It’s a smart decision. •