Memphis venture capital fund Innova announced today they are investing in Knoxville-based TrakLok Corporation, marking the first investment through the state's new TNInvestco venture fund tax credit program.

TrakLok has patents for electronic locking and tracking technology that shippers can use to "combat theft, smuggling, and vandalism to the millions of cargo containers arriving at ports and rail yards throughout the world." The locks can "deny or allow entry to a protected container based on a combination of time, location, and authorization codes."

This is a pretty clever idea that could go a long way towards helping secure our ports, something Homeland Security has been putting off for nearly a decade.

More info in the press release...

The TNInvestco program, created by legislation passed last year, allocates $120 million dollars in tax credits to venture capital funds that invest in Tennessee companies. The funds then market the tax credits to insurance companies, which purchase the credits with capital reserves.

The program is not without controversy. A rejected applicant sued for access to records relating to the selection of venture funds included in the program. A Nashville Chancery Court judge ruled that the documents would remain confidential until 2015.