ALBUQUERQUE, N.M. (AP) – New Mexico will be investing more money in state-based businesses and startup companies as it attempts to spur development and diversify the economy.

The State Investment Council voted Tuesday to adopt recommendations that will target a greater number of commitments to New Mexico and nationally-based venture capital firms actively investing in the state.

Gov. Michelle Lujan Grisham is the council’s chair. She says by targeting investments in New Mexico’s own backyard, the state can achieve positive financial returns while creating jobs and new industries.

The council previously funneled only 5% of the state’s $5.5 billion severance tax permanent fund to local investments due to historically lower returns and higher risks.

The decision to increase that to 9% – the most allowed under state law – comes after months of analysis.