LANSING – The Michigan Economic Development Corporation today announced that the Michigan Strategic Fund is accepting applications for the Pure Michigan Venture Match Fund.
“Innovative early-stage companies often need venture capital to help finance critical stages of their development and commercialization,” said MEDC President and CEO Michael A. Finney. “We are aiming to bridge this capital gap and help entrepreneurs develop promising technologies to grow into new innovation companies, while we diversify Michigan’s economy and create new wealth in our state.”
Beginning April 2, the Pure Michigan Venture Match Fund is seeking applications from Michigan companies that have received an equity investment commitment lead by a qualified venture fund for commercialization and growth purposes to provide a match of the investment.
The Pure Michigan Venture Match Fund will match early stage investments from eligible venture lead investments in Michigan-based technology businesses. The minimum venture lead investment that will be considered is $700,000 and the maximum is no more than $3 million. The match from the MSF will be no less than $350,000 and no more than $500,000, with similar investment terms as the venture lead commitment. A total of $5 million will be available for this initial round of funding.
The program is intended to attract venture capital, within and outside of Michigan, to consider investments in early stage and pre-revenue Michigan-based technology companies and to mitigate some of the risk for venture lead investments by syndicating with MSF funds.
Companies will only be allowed to apply for MSF funding once they have secured a qualified venture lead investment, making this a market-driven application process. 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 company business plan and investors as required under the 21st Century Jobs Fund legislation.