Show-Me State Times

The Missouri Chamber of Commerce and Industry is throwing its weight behind a new bill aimed at boosting investment in startup businesses statewide. The proposed legislation, known as the “Missouri Angel Investment Incentive Act,” has garnered support from Rep. Travis Smith (R-Dora), who sponsored the bill.

During a hearing before the House Financial Institutions Committee, Rep. Travis Smith emphasized the importance of creating an environment where new and small businesses can flourish, stating, “My goal is to make our state the place where new and small businesses can plant their roots and grow in our soil.”

Describing the role of angel investors, Smith explained that they are individuals or groups who use their own funds to provide capital for startup ventures, often in exchange for ownership equity. He highlighted the significance of the proposed tax credits in encouraging angel investors to support startups, noting, “We should realize that an angel investor is risking their own money.”

Under the proposed legislation, there would be a cap of $6 million in tax credits available, with a single investor eligible to receive credits up to $300,000. To ensure equal access for rural entrepreneurs, the state would be divided into four sections, with specific allocations for different regions.

Smith underscored the urgency of the bill by pointing out that many young entrepreneurs are leaving the state to establish their businesses elsewhere. He stated, “Young people leaving our state and going to Arkansas or Kansas to start their businesses is the driver for me to get this bill passed.”

Heidi Geisbuhler Sutherland, the director of legislative affairs for the Missouri Chamber, echoed the chamber's support for the initiative, emphasizing the challenges faced by startups in the state. Sutherland expressed, “Missouri is a nationally recognized technology and innovation hub, but it can still be really tough to get a startup off the ground in this state. We’re supportive of this bill because it incentivizes investors to devote resources to these new businesses and help them be successful.”

For individuals seeking more information on the bill or the Missouri Chamber's stance, they can reach out to Heidi Geisbuhler Sutherland at hsutherland@mochamber.com or (573) 634-3511.