This article describes the basic CAPCO structure, created by the CAPCO members. Oklahoma did not use a CAPCO, rather some Oklahoma venture capital cronies adapted the CAPCO model with signficantly changes that makes the scam even more lucrative and less risky than the basic CAPCO scam so many are calling a scam. One example, is where this article describes in basic CAPCO structure the state provides one dollar of tax credit for every one dollar of CAPCO capital. Oklahoma allows two dollars for every one dollar of invested capital.

What that means is the basic CAPCO insures the venture capitalist gets all of their money back. Oklahoma takes that further and gives twice the money back. Plus they get to keep the business and all profits made from the business.