Arizona Venture Development Corp. names new CEO
Arizona Venture Development Corp. has named James Goulka its new chief executive officer, effective July 29, the Phoenix-based venture capital firm announced.
Goulka took the helm of AVC on Monday. Prior to joining the venture capital firm, Goulka served as chairman and managing director of Arizona Tech Investors. He retired from that role in December 2022.
His appointment as CEO comes on the heels of the AVC board’s termination of former CEO Andy Lombard in June.
AVC directs millions in federal funds to Arizona startups with underrepresented founders, administered through the Arizona Commerce Authority.
“I am excited to join Arizona Venture Development Corporation. It is a unique opportunity to demystify the role such investments play in Arizona’s economy, complement existing economic development initiatives statewide, and accelerate the growth of Arizona’s best young companies,” Goulka said in a statement. “I look forward to working with the AVC staff, our existing investment partners and the tech startup community.”
AVC’s three-member board unanimously selected Goulka based on his extensive expertise in venture capital and the Arizona-based tech ecosystem, Vada Manager, an AVC board member, told AZ Inno.
Goulka led ATI for more than 12 years, overseeing the organization’s growth from 22 members to more than 100, making it one of the most prominent angel investor groups in Arizona. Goulka made increasing the diversity of ATI as part of his mission as director of the organization, the Business Journal previously reported.
Goulka has served as CEO of three software companies. In addition, he was CEO of the National Technology Transfer Center, which commercialized intellectual property developed in 10 NASA labs and parts of the U.S. Department of Defense.
He was also chief operating officer and chief financial officer of Encyclopedia Britannica Inc. and its subsidiaries, where he was responsible for digitizing its products, according to an AVC announcement.
Goulka began his career in corporate finance and private equity at JPMorgan Chase and Citibank.
“The Arizona Venture Development Corporation board of directors is delighted that an experienced venture capital professional such as Jim Goulka has accepted this important leadership role which will deliver long-term economic vitality for the citizens of Arizona,” Manager said in a statement.
AVC awaiting second tranche of funding
In the wake of his termination, Lombard and the Arizona Commerce Authority have been embroiled in a dispute, since Phoenix-based attorney Stephen Montoya — on behalf of Lombard — served a notice of claim on June 19 to Sandra Watson, president and CEO of the ACA, which has oversight over Arizona Venture Development Corp.
The notice of claim alleges that ACA officials demonstrated “unprofessional and unethical behaviors” and accuses Watson — an AVC board member — of conflicts of interest and making “controlling demands” that impacted the organization’s operations.
The ACA has said Lombard’s claims “have no merit,” while AVC’s board called the allegations in Lombard’s termination letter “unsupported and inaccurate.”
Lombard’s employment contract was slated to expire in September.
Lombard is pursuing a $500,000 settlement to resolve his claim with ACA, equating to a $255,000 annual salary, a $45,000 incentive bonus and $15,000 in health insurance benefits. The ACA has 60 days from the date of the claim to respond.
The ACA told the Business Journal in June that it had not yet entered into settlement discussions with Lombard. The organization said in an email Tuesday it has no update on those discussions beyond what it already provided.
In 2022, the ACA was awarded federal funding from the U.S. Department of the Treasury to establish the Arizona Multi-Fund Venture Program and the Arizona Venture Co-Invest Program, consisting of $87 million in federal funds from the State Small Business Credit Initiative. The ACA then entered into a contract with AVC to operate and manage the two programs.
The ACA confirmed it temporarily paused the Arizona Venture Co-invest Program in October 2023 to evaluate modifications to the SSBCI Program, while it awaits a second tranche of federal funding.
Manager told AZ Inno that AVC’s board has received “positive indications” that the second tranche of funding will “go forward,” instilling confidence in the organization’s future. The firm will discuss plans for reinstating the Arizona Venture Co-Invest Program with Goulka, Manager added.