Michigan Launches New $120M VC Pool to Spur Investments in State Tech Startups
The state of Michigan has launched a new $120-million venture capital pool that will invest in seed and early-stage venture capital funds that in turn invest in high-tech companies in the state. Venture firms that receive money from the Venture Michigan Fund II will be required to invest at least as much in Michigan-based companies as they receive in capital commitments, according to a news release.
Venture Michigan Fund II follows the first Venture Michigan Fund formed in 2006, which invested $95 million into 11 VC funds. To date, with about 36 percent, or $34 million, of VMF I capital deployed, fund managers have invested more than $38 million in 15 Michigan-based companies, according to the release.
“The growth of the venture capital industry in Michigan will be a very important part of the transformation of the Michigan economy,” Tom Kinnear, chairman of the Venture Michigan Fund Board, said in a statement. “A healthy and active Michigan venture capital industry results in investment in attractive, growing high technology companies and industries. This means new jobs for the Michigan economy. VMF II should play an important role in this process.”