The establishment of the Arizona Fund of Funds was able to occur thanks to the Arizona Economic Resource Organization (AERO) securing initial funding through the Commerce & Economic Development Commission (CEDC) . The program raises investment capital from investors - both private & public sector - and reinvests those funds in several professionally managed target venture funds. The Fund of Funds is being started with $325,000 from the CEDC's Innovation & Technology funding.
Through strategic & coordinated fund raising, venture fund selection & investment oversight, AERO's goal is to establish a $50 million Fund of Funds which will be structured & managed to attract overall investment of at least $200 million to help commercialize Arizona innovations.
To qualify for an investment from the Fund of Funds program, each target venture fund must satisfy criteria developed to insure specified minimum levels of targeted investment activity in the state.