'Startup America' to focus on mentoring entrepreneurs, matching private investments

The White House launched a national campaign aimed at incubating tech entrepreneurs on Monday that will focus mainly on providing mentorship and matching investment capital from the private sector.

The program, dubbed "Startup America," is an attempt to make good on President Obama's push during his State of the Union address to "win the future" by promoting innovation among American firms. 

“Entrepreneurs embody the promise of America: the belief that if you have a good idea and are willing to work hard and see it through, you can succeed in this country. And in fulfilling this promise, entrepreneurs also play a critical role in expanding our economy and creating jobs," Obama said.

"That’s why we're launching Startup America, a national campaign to help win the future by knocking down barriers in the path of men and women in every corner of this country hoping to take a chance, follow a dream, and start a business.”

The cross-administration effort includes several parts: permanently eliminating the capital gains tax on some small business investments, accelerating the patent process, reducing regulations that obstruct entrepreneurs and providing more capital and mentoring for small technology firms.

"Startup America is really much bigger than the individual initiative. It's a cross-administration and nationwide call to action for leaders of all sectors and industries to come together around entrepreneurs and help them win the future," said Small Business Administration Administrator Karen Mills in a conference call with reporters.

The SBA will direct $2 billion to match capital from private sector investors who fund small firms that are in under-served communities or work in high growth areas like clean energy technology.

Mills said the money would be directed through the SBA's existing investment programs and the applicants would be mostly traditional investors and venture capitalists.

Intel has already pledged $200 million for investments in U.S. firms, while IBM ($150 million) and HP ($4 million) also promised funding for programs aimed at encouraging entrepreneurs.

The SBA is also partnering with the Department of Energy to expand mentorship programs that link young firms with experienced entrepreneurs in their local communities, again focusing on clean energy and technology startups.

AOL co-founder Steve Case will be leading the public-private partnership, which will also include an advisory council of technology industry leaders. SBA will partner with a number of startup mentorship and accelerator programs including TechStars, considered a leader in the field.

Commerce Secretary Gary Locke also detailed a new program that will allow technology entrepreneurs who need patents to secure funding to obtain a patent within a year, rather than the three years it takes currently.