Midwest VCs Hope For Replenished State Capital Funds, Despite Tight Budgets

7/17/14Follow @XconomyDET

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political will necessary to allocate more of the state’s budget toward funding capital programs. But Snyder is in the midst of a re-election campaign, and though polls show that he currently leads, victory isn’t certain.

However, in a state that couldn’t summon the votes necessary to pay for desperately needed improvements to our roads and bridges, prying budgetary dollars away to fund venture capital programs seems like a long shot.

“The budget is tight,” Flanagan admits. “The governor and the legislature have a lot of tough decisions. We’re trying to prioritize within the MEDC, too. There has been an increased commitment in general to the MEDC, but that doesn’t necessarily filter down to venture capital programs. It’s important for the state to invest in this market until it gets more mature. Eventually, if it’s mature enough, we’ll see VCs raise money without needing the state. But we’re just not there yet.”

Sarah Schmid is the editor of Xconomy Detroit. You can reach her at 313-570-9823 or sschmid@xconomy.com. Follow @XconomyDET

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  • Megan Burkett

    If it will mature eventually I am curious what it will take? In the past 2 weeks I have read articles about the bright future of the Midwest and VC investments. It is exciting for the dialogue to occur in the first place- attention and potential being recognized. In terms of government support- I acknowledge it to be a powerful tool but believe for it to be recognized at that level more private investors must identify and align in the Midwest. This is happening- but will also take time.