LANSING – Ann Arbor-based Life Sciences companies won the lion’s share of nearly $30 million available from the Michigan 21st Century Jobs Fund

2008 Commercialization Business Plan Competition.

Final results show a total of 17 Michigan companies will split $29,676,016.

Eleven Ann Arbor-based companies were awarded 21st Century funds, with seven from the Life Sciences sector, three from Homeland Security/Defense and one from the Advanced Manufacturing, Advanced Materials.

Other winners hailed from Midland, Williamston, Farmington Hills, Deerfield, and Kalamazoo. By category, Life Sciences won eleven grants, Homeland Security/Defense three, Advanced Manufacturing/Materials two and Alternative Energy one.

The screening committee from the National Center For Manufacturing Science culled through 117 applicants and reduced them to 52 finalists seeking $119.8 million. Only $30 million was allocated by the Michigan Legislature.

The finalists included 12 in the Advanced Automotive, Advanced Manufacturing, and Advanced Materials sector seeking $38,736,374; two from the Alternative Energy sector seeking $2,425,000; Nine from the Homeland Security and Defense sector seeking $11,999,695; and 29 from the Life Sciences sector seeking $66,619,471.

Michigan Economic Development Corp. CEO James Epolito said the final results show the state has a very strong concentration of life sciences companies in greater Ann Arbor due primarily to the research done at the University of Michigan – the reason Ann Arbor life science companies were the big winners.

“It’s a peer-review process,” he said. “A panel of experts outside the MEDC, outside the legislature, made the decision. It’s not government picking winners and losers.”

But he acknowledged that there are now 100 companies that began the process are upset they didn’t get the loans from the Strategic Economic Investment and Commercialization Board.

“We have to talk with these companies and get them to improve their submissions,” he said. “It was not their technology that was passed over, but their ability to commercialize it.”

The 17 companies selected are not all guaranteed loans either, Epolito said. Due diligence still needs to be done before finalizing any loans. The loans, at the discretion of the SCIC board, can be convertible to equity.

“With each of these winners we will assign a portfolio manager to oversea the entire process,” Epolito said. “If we find any companies out of compliance or there are problems with the loan agreement, we won’t move forward with the loan.”

Whether there will be a spring 2009 21st Century Jobs Fund program remains to be seen. The Michigan legislature has to allocate future funds. Epolito said he hopes at least $50 million will be earmarked next year for the 21st Century Jobs Fund to pump much needed cash into promising Michigan technology companies. With Wall Street in chaos, and the world economy in crisis, he said, the legislature may not provide the funds needed for next year’s contest.

For a complete list of winners, click on MITechNews.Com

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