Michigan Initiative Seeks to Invest $9M in State


Published:

LANSING — The Michigan Economic Development Corporation on Wednesday announced that the Michigan Strategic Fund is targeting to invest up to $9 million to help grow the venture capital industry in Michigan.

“Michigan is a national leader in research and development — ranking 5th among all states in number of patents awarded, in the top 15 in university innovation and second in industrial R&D spending — all critical drivers of good venture deals,” Gov. Rick Snyder said. “The venture industry needs to continue its growth here to better support entrepreneurs who are developing promising technologies and innovative early stage companies that will help to propel Michigan’s economy in the future.”

Beginning June 28, the Pure Michigan Venture Development Fund will seek applications from first and second generation venture capital funds in Michigan for the primary purpose of increasing their ability to raise additional funds and become viable entities, with the ultimate intent of increasing the number of venture investments in the state.

The PMVDF will invest in up to four new venture funds in the state with up to $2.25 million each. Awarded venture funds must raise additional capital from the private sector (at least 4.5 times the state’s investment) and invest in Michigan companies.

To qualify, applicant venture funds are required to have raised $1 million in private capital from at least three unrelated investors at the time of application, which must be evidenced by signed investor commitments. Funds that have raised more than $25 million are not eligible to apply. Funds with target sizes greater than $50 million will not qualify for this program.

Proposals are then submitted to the MEDC via email to VDF@Michigan.org. Once the MEDC has received the application, applicants will be contacted on how to pay the application fee. Proposals will not undergo peer review until the application fee has been received.

All applications must be received by July 31 in order to be considered for award.

There will be a $1,000 application fee due once a review confirms that the application meets the required minimum guidelines. There will be a peer review of the venture fund’s business plan as required under the 21st Century Jobs Fund legislation.The full review process will take up to 90 days. 

Questions can be submitted to VDF@Michigan.org. Responses to questions will be posted to the program web page: www.michiganadvantage.org/PureMichiganVentureDevelopmentFund.

Edit Module
Edit Module Edit Module
Edit ModuleShow Tags

Related Articles

Ford to Auction Aviation-inspired Mustang

Dearborn-based Ford Motor Co. has unveiled a new aviation-inspired Mustang, which will be auctioned off to benefit the Wisconsin-based Experimental Aircraft Association’s youth education programs.

Fontinalis Partners Closes on $100M Mobility Fund

Fontinalis Partners, a Detroit-based venture capital firm, has closed on its second fund, Fontinalis Capital Partners II L.P., for $100 million. The new fund will invest in companies working on next-generation mobility technologies.

Tropical Smoothie Opens Westland Location

Tropical Smoothie Cafe, a fast casual restaurant that focuses on smoothies and healthy food options, has opened a new location in Westland. The new location is the company’s 37th store in Michigan and 500th store total.

Sophia Loren Event to be Held at Detroit Opera House

An event featuring Italian film actress Sophia Loren will take place at the Detroit Opera House this fall.

Kellogg Establishes Venture Capital Fund

Battle Creek-headquartered Kellogg Co. has announced plans to invest $100 million in start-up businesses working on new ingredients, foods, packaging, technology, and more, through its new venture capital fund.
Edit ModuleShow Tags

Most Popular

  1. Historic Italian Restaurant to Reopen in Detroit’s Capitol Park
    La Lanterna, an authentic Italian restaurant that operated from 1956 to 1979, is reopening at The...
  2. Report: Metro Detroit Office Market Vacancy Rate Falls to 18%
    With just over 474,000 square feet absorbed, metro Detroit’s office market vacancy rate fell 60...
  3. Saint Joseph Mercy Health System First in Michigan to Offer Knee Surgery Cooling Treatment
    Pontiac-based St. Joseph Mercy Oakland, a member of Saint Joseph Mercy Health System, is the...
  4. Bloomfield Hills-based Firm Creates Robotic Dining Solution for the Disabled
    Desin, a technology company founded by a group of investors from Michigan and Ohio, has released...
  5. Ford and Jose Cuervo Partner to Develop Sustainable Auto Materials
    Dearborn-based Ford Motor Co. is partnering with Jose Cuervo, a New Jersey tequila producer, to...
  6. MEDC Reaches $1.2M Purchase Agreement to Create Connected Vehicle Facility at Willow Run
    Michigan Economic Development Corp. has reached a $1.2 million purchase agreement for the...