The state plans to launch a new fund, the Pure Michigan Venture Match, to invest in early-stage technology companies. The Michigan Economic Development Corp. and Michigan Strategic Fund will hold a public hearing on the proposed fund Feb. 8.
The plan is to provide a minimum investment of $350,000 and a maximum of $500,000 to companies that already have secured $700,000 to $3 million of investment funding from other sources. Companies must have their outside investment before applying for state funding.
The Venture Match fund is intended to get venture capital funds both inside and outside the state to consider more investments in early-stage and pre-revenue companies.
“Innovative early-stage companies often need venture capital to help finance critical stages of their development and commercialization,” MEDC President and CEO Michael Finney said in a press release. “We are aiming to bridge this capital gap and help entrepreneurs develop promising technologies to grow into new innovation companies.”
The hearing will be from 10 a.m. to noon at the MEDC headquarters in Lansing. After the hearing to answer questions and hear comments, formal fund guidelines will be presented to the strategic fund board for approval.
The state hopes to launch the program March 1.