A drug developer rooted in Southwest Michigan and backed by investors across the region may pursue an initial public stock offering that could net up to $86.2 million to support further development and commercialization.

In securing a $40 million investment, Cirius Therapeutics Inc. illustrates a fundamental change that occurred in Michigan’s venture capital sector over the last decade.

KALAMAZOO — A $40 million venture capital investment in a company spun out of a Kalamazoo-based drug development firm comes with a new executive management team based across the country.

A company that spun out early last year from a Kalamazoo drug developer plans to move its office to San Diego, Calif. after securing $40 million in new venture capital funding.

The trade group for venture capitalists in Michigan wants to form a $100 million fund to match millions in private capital with public investment.