Tuesday, January 31, 2012
LANSING– The Michigan Strategic Fund and the Michigan Economic Development Corporation today announced a public hearing to accept questions and comments on the new Pure Michigan Venture Match Fund.
The hearing is scheduled to take place from 10 a.m. to noon on February 8 at the MEDC headquarters, 300 N. Washington Sq., Lansing, Mich. 48913.
“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.”
The Pure Michigan Venture Match Fund will match early stage investments from eligible venture funds in Michigan-based technology businesses. The minimum venture 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 investment.
Companies will only be allowed to apply for MSF funding once they have secured a qualified venture investment, making this a market-driven application process. There will be a peer review of the company business plan and investors as required under the 21st Century Jobs Fund legislation.
The program is intended to attract venture funds, within and outside of Michigan, to consider investments in early stage and pre-revenue Michigan-based technology companies and to mitigate some risk for venture fund investments at this stage by participating with MSF funds in early rounds.
After consideration of the comments and information received at the public hearing, the final MVM Fund program guidelines will be presented to the MSF Board for approval and implementation. The program is anticipated to launch on March 1 if approved by the MSF board at the February board meeting.
The draft guidelines for the MVM Fund can be found at www.michiganbusiness.org/pmvm-timeline/.
The Michigan Economic Development Corporation, a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan's economy. For more on the MEDC and its initiatives, visit: MichiganBusiness.org.