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Thursday, 29 March 2012 09:36

Pure Michigan Venture Match Fund created to fill funding gap

Written by  MiBiz Staff
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MICHIGAN — The Michigan Economic Development Corp. doesn’t want to be in the business of picking winners and losers, but it’s hoping a new venture match fund will provide a market-driven program aimed at filling a funding gap for early-stage companies.

The Pure Michigan Venture Match Fund, which was expected to be approved by the Michigan Strategic Fund as MiBiz went to press, is designed to have the state match funding from venture capital firms for investments in early-stage companies.

The goal for the fund is to attract more capital to the state, said Michael Psarouthakis, VP of business acceleration at the MEDC.

Companies can apply to the fund once they’ve raised between $700,000 to $1 million, and the state will match 50 percent – from $350,000 to $500,000. For companies that have raised between $1 million and $3 million, the state match is capped at $500,000.

In a competitive process, companies will apply to the fund via an online application by submitting a business plan of no more than 35 pages, plus supporting documents. The qualified lead VC firm must also submit a valuation and an evaluation of why it made the investment in the company. The cost to apply is $1,000.

The applications will be peer reviewed, and successful projects will be put to the Michigan Strategic Fund manager for a final decision. The entire process is expected to take from four to six weeks.

The state expects to be able to start taking applications by April 2.

For a more in-depth report, look for a story in the April 2 issue of MiBiz.

Read 1785 times Last modified on Sunday, 12 August 2012 10:16

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