AUBURN HILLS ? A portion of the $200 million in state funds earmarked for investment in Venture Capital companies seeking to in turn invest in Michigan technology companies should begin flowing within the next month or two.
The news came Wednesday during the Michigan Homeland Security Consortium?s investment seminar held at Oakland Community College. Officials from the Michigan Economic Development Commission said the Venture Michigan Fund and the 21st Century Fund will each invest in eight to 12 Venture Capital funds, starting in late December or January 2007.
Ned Staebler of the MEDC?s Capital Markets Development said the Venture Michigan Fund will invest $95 million over the next three years, with an initial commitment late this year. The 21st Century Fund, which will invest about $115 million, will make its first commitment by the end of the year or the first few weeks in 2007.
Each fund will invest from $7 million to $10 million in Venture Capital funds ? not necessarily based in Michigan ? with the commitment that these funds invest in Michigan companies. The twin funds can not become more than 25 percent of the total invested in any individual Venture Fund.
What this investment strategy means is at least $800 million will be made available through 2010 for investments in Michigan companies, since the private sector fund must come up with at least $600 million of its own money to pool with the $200 million from the state.
