LANSING – The Michigan Economic Development Corporation would operate a new $3 million venture capital matching fund for the state’s technology companies under a proposal outlined Wednesday to the Michigan Strategic Fund Board.
Mike Psarouthakis, vice president of business acceleration for the MEDC, said initial proposed funding would total $3 million, but the hope is to get a commitment of $10 million over the next three years.
Technology companies would have to be based in Michigan and follow all Strategic Fund reporting requirements to qualify.
Those businesses could receive up to $500,000 in matching money. There would be no deadline for the program, so it would issue the matching funds until that year’s appropriation runs out.
The investment committee is still reviewing the proposal and a formal request for the board’s approval is expected in January.
In other action, the board approved 12 business incubator grants out of 23 applications. A total of $6 million was awarded with the largest grant, $875,000, going to Wayne State University Research and Technology Park and TechTown.
“Early-stage companies require seed capital and access to a strong network of public and private resources,” said MEDC President and CEO Michael Finney. “We are confident that with the funding of these organizations and the types of services they will provide, we will continue to accelerate the growth of innovative technology start-ups in Michigan.”
The board also approved the second Next Michigan Development Corporation designation for the city of Lansing and DeWitt Charter Township as it pursues its own aerotropolis surrounding the Capital Region International Airport. The joint venture, called Port Lansing, is aimed at making mid-Michigan a destination for freight service and will be able to tap local economic development incentives to lure business.
The board also approved a series of renaissance zone time extensions for 1208 Woodward, ChemQuest, James Group International, Peerless Metal Powders and Abrasive, Midwest Machining, Mistequay Group, Philips Machining Company, TransNav and Pi Optima.
a>>
