Targeted Initiatives
Capital Market Development
Michigan is focusing intently on growing its capital markets through creative programs to establish the necessary funding support for companies to get the Upper Hand in emerging markets.
Venture Capital Funding
Michigan's venture funding initiatives are designed to improve access to private venture capital for Michigan growth-oriented firms. The Michigan Economic Development Corporation (MEDC) has developed a comprehensive directory of Michigan resources involved with venture funding, including more detailed profiles of venture funds and their interests.
21st Century Investment Fund
The 21st Century Investment Fund is prepared to invest up to $109 million in qualified private equity, venture capital and mezzanine firms. A portion of those investments may also be placed directly in companies in which a qualified firm has made or is making an investment.
The 21st Century Investment Fund will seek a superior rate of return and require that firms in which investments are made maintain an office in Michigan as well as make investments in the state that are equal to or greater than the amount invested in those firms. In addition to rates of return, the fund's goals target job creation and diversification of the state's economy. Click here for more information.
Venture Capital & Angels Network
Established by venture capital and private equity investors in the state, the Michigan Venture Capital Association (MVCA) (www.michiganvca.org) is the state's premier public policy advocate for the private equity/venture capital industry, working to promote entrepreneurship and private equity investment. The MEDC is a founding member of the MVCA. For further details, please contact info@michiganvca.org.
The MEDC has aggressively supported the growth of angel networks to create/fill the much needed gap for seed stage financing. Three angel networks are actively looking at investment opportunities. Grand Angels (www.grandangels.org) is based in Grand Rapids while Ann Arbor Angels (www.annarborangels.org) is based in the Ann Arbor area. Great Lakes Angels (www.glangels.org) is based in the Bloomfield Hills area and is Michigan's oldest angel network.
Angel Investment Incentive (PA 214 of 2005)
The Angel Investment Incentive is a trial program designed to stimulate the creation and growth of early stage technology companies by providing a tax deduction for individual investors when the basis plus all or some portion of the profits from an initial qualified investment are rolled over into a subsequent investment in a qualified technology company. To be qualified, a company must be certified by the Michigan Strategic Fund Board at the time of an investment.
The Michigan Strategic Fund Board will strive to review applications within two weeks of the receipt of the application and all supporting documentation. The application and supporting documentation should be sent to:
Angel Tax Incentive
Michigan Economic Development Corporation
300 North Washington Square, 3rd floor
Lansing, Michigan 48913
Information on which investments qualify and the required criteria for a company.
Application form for companies seeking certification by the Michigan Strategic Fund Board or investors seeking to register qualifying investments or claim a deduction.