LANSING ? The Michigan Strategic Fund board on Thursday approved an investment of up to $3.75 million through the Michigan 21st Century Investment Fund in RPM Ventures II, a venture capital fund. RPM was formerly known as Waypoint Ventures.
The official announcement was made by Michigan Gov. Jennifer Granholm and Michigan Economic Development Corp. CEO James Epolito. The fund will focus on investments in IT, alternative energy and other technology-based companies in the Midwest as well as high-tech companies that will be spun out from university R&D labs.
Managed by Marc Weiser and Tony Grover, Ann Arbor-based RPM has operated in Michigan since 2000. Weiser and Grover have a strong network of close relationships with universities, research institutions and companies in Michigan, they said. So far about a third of RPM?s deals are first round spin outs from universities, including the University of Michigan.
Weiser and Grover sit on a variety of boards and committees that support venture capital in the state. RPM created the Michigan Alumni Venture Partners Network and sponsored the U-M Cleantech Conference. To date, Weiser and Grover have invested $2.4 million in eight Michigan-based companies. RPM also has yielded the only U-M venture-backed information technology spin out in the last three years.
?This new fund with experienced principals connected with Michigan?s university, research and business communities will support our efforts to create and grow new high-tech companies and good-paying jobs in Michigan,? said Epolito, the chair of the MSF board.
The 21st Century Investment Fund is a major component of Granholm?s 21st Century Jobs Fund, a $2-billion, 10-year initiative to diversify the state?s economy and grow high-tech companies and jobs. Commitments through the fund can only be invested in companies that have a strong Michigan presence. The program is focused on generating strong returns while creating and retaining Michigan jobs. Including this investment, the MSF has authorized up to $58.75 million of investments in venture capital, mezzanine, and private equity funds through the 21st Century Investment Fund.
The $109 million 21st Century Investment Fund, focused on investing in venture capital companies that invest in Michigan companies, seeks to strengthen and diversify Michigan?s economic base by fostering the creation and growth of new jobs, new businesses, and new investments. The Michigan Strategic Fund contracts with Credit Suisse to develop and administer investment programs under the Michigan 21st Century Investment Fund.
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