The Hawaii Strategic Development Corporation (HSDC) is an agency of the State of Hawaii established in 1990 to promote technology based economic development and economic diversification in Hawaii through a return driven investment program in partnership with private capital.

 

HSDC has adopted an indirect investment policy whereby it seeks to invest in venture capital partnerships that in turn will make direct investments into Hawaii-based companies.  The general partners of the venture capital partnerships, or fund managers, are private sector investors who pool funds from a number of investors, identify and invest in promising businesses, and manage the investments until an exit from the investment is achieved.  In this manner, HSDC is able to leverage public funds with private capital and utilize the investment acumen of the private sector in selecting suitable investments.

 

Investment Criteria

HSDC seeks to invest in fund managers with experience in venture capital investing and that have a commitment to build a portfolio of Hawaii-based investments.  Emphasis is given to investment opportunities that further technological innovation in Hawaii.  HSDC is currently precluded by law from investing in retail businesses, housing construction, and the tourism sector.