Seed, Angel, and Venture Capital are equity-based sources of funding. Michigan has several investment funds that serve start-up and second stage companies as they seek to grow.
| | Michigan Pre-Seed FundThe Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to early-stage capital, accelerating company development. As a central fund to the Michigan SmartZoneSM Network, these funds are designed to support this critical stage in the development lifecycle to prepare companies for follow-on private investment. Companies developing technologies in Advanced automotive, manufacturing and materials, alternative energy, homeland security and defense and life sciences, statewide are eligible for these funds through the Michigan SmartZone Network. |
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| | The Venture Michigan Fund (VMF) is a $95 million venture capital investment program designed to help Michigan create jobs and bring new industries to the State through the creation of a fund-of-funds that invests in private equity managers that invest primarily in Michigan-based early stage companies. A unique component of VMF is that the capital for the fund is strictly raised by outside investors, with the Michigan Department of Treasury offering to provide investors with up to $200 million of tax voucher certificates to offset any shortfall. VMF seeks to invest in mainly Michigan based companies as well and Michigan focused private equity funds. Credit Suisse manages the fund, and strives to highlight the strong opportunity for private equity investment in Michigan given the State's strong capital and resource base, a vibrant infrastructure of government, industry and academics, and the increasing number of start-up companies that require financing for growth. |
| | The Michigan 21st Century Investment Fund seeks to strengthen and diversify Michigan's economy by fostering the creation and growth of new jobs, businesses, and industries within the state through investments in private equity, venture capital and mezzanine funds, as well as potential co-investments. This initiative is capitalized with $120 million in commitments, and is focused on four main sectors of the economy, including life sciences, alternative energy, homeland security and defense, and advanced manufacturing. The program strives to gain a superior rate of return on investments while contributing to economic diversification and job creation in the state, promote the retention and growth of businesses and jobs in Michigan-based businesses, encourage the development and commercialization of competitive edge technologies, encourage the development and growth of a Michigan-based venture community, seek to attract investments from both regional and national funds; and encourage public and private partnerships within the State of Michigan. Visit 21stCentury Investment Fund website for more information. |
| | InvestMichigan! represents a groundbreaking partnership of public and private interests in the deployment of private equity capital. InvestMichigan! is a $300 million fund focused on generating strong returns for investors and growing the next generation of Michigan companies. InvestMichigan! has two main components in order to support companies in both early and later stages of development. Under the Growth Capital Program, InvestMichigan! targets lead and co-investment opportunities in venture capital and small buyout stage companies. The Michigan Opportunities Program targets lead investment opportunities in buyouts and growth equity investments in well established companies. InvestMichigan! strives to fundamentally change the way that government and private business work together, and has several goals: to retain and attract businesses to Michigan, nurture portfolio companies at each phase of development, enhance the reputation and further develop Michigan’s entrepreneurial ecosystem, and attract leading regional and national private equity and venture capital investment funds to Michigan. |
