GRAND RAPIDS – The trade group for venture capitalists in Michigan wants to form a $100 million fund to match millions in private capital with public investment.
Under the proposal that’s being pushed by the Michigan Venture Capital Association, private investors would put $75 million into a fund to seed new venture capital funds, an amount the state would then match with $25 million, MiBiz has learned.
The underlying reason: They want to maintain the growth in venture capital investing that’s taken shape over the last decade in the state.
“The state’s basically putting in an ante and the private sector can raise the larger pot,” said Mark Olesnavage, incoming chairman of the MVCA and the managing director of Hopen Life Science Ventures in Grand Rapids.
The plans differ from two prior fund-to-funds created by the state in that it relies largely on private investment that’s coupled with public support, rather than all public funding. It would require a much smaller state investment, at a time when many in Lansing have sought to cut funding for the prior programs.
Written by Mark Sanchez Of MIBiz
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