LANSING ? The Michigan Pre-Seed Capital Fund, administered by Ann Arbor SPARK, will get a $6.8 million shot in the arm from the Michigan Economic Development Corp., which did an about face Wednesday and invested in an economic development group, rather than directly in a company.
The money was approved by the MEDC?s Strategic Economic Investment and Commercialization Board from the state?s $2 billion 21st Century Jobs Fund. In March 2008, the MEDC declared economic development groups would not be eligible for 21st Century Jobs Funds. The move left the Pre Seed Fund, which has invested in some 30 Michigan companies, without a benefactor. Now it can make investments again.
The move gives new hope to other Michigan economic development groups that have been seeking additional funds to keep providing services to Michigan technology startups. Those include both the Great Lakes Entrepreneur?s Quest, whose $600,000 plus investment by the MEDC runs out this summer, as well as MichBio, the state?s life sciences trade association. Both are seeking an additional $250,000 investment to keep entrepreneur-support programs alive.
The Pre Seed Fund invests in companies recommended by the state?s 15 SmartZones, Automation Alley and the West Michigan Science & Technology Initiative.
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