Michigan has initiated a $120 million venture capital pool to invest in seed and early-stage venture capital funds that it expects to invest in high-tech companies in Michigan. The program, to be called the Venture Michigan Fund II, will zero in on advanced manufacturing, healthcare and life sciences, information technology, alternative energy, and homeland security and defense.
"The growth of the venture capital industry in Michigan will be a very important part of the transformation of the Michigan economy," said Tom Kinnear, Chairman of the Venture Michigan Fund Board. "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."
Participating venture capital fund managers must invest at least as much in Michigan companies as they receive in capital commitments from the fund.
In August 2006, the Venture Michigan Fund I was formed. It committed $95 million and secured 11 venture capital fund commitments.