LANSING – Since the first checks were written a little more than seven months ago, the two funds the state set aside to invest in new businesses to spur economic growth, especially in the life sciences and new technologies sectors, have had exciting results, already attracting venture capitalists from across the country to invest in Michigan startups, Kelly Williams, a representative for the company that manages the more than $200 million in the 21st Century and Venture Michigan Funds, said Tuesday at a media roundtable.

Three new life sciences and alternative energy companies have already sprung up in Southeast Michigan from the funds, with each company expected to employ dozens or as many as 100 people at full capacity, because of investments from the funds, said Williams, the managing director for customized fund investment at Credit Suisse.

“There is a good deal of excitement surrounding these companies,” she said, adding that their presence is proof that the funds are making Michigan a welcoming place for investors to lay down their roots.

The three new companies, which received about $5.5 million in investments from the state, also brought in an additional $11 million from venture capitalists outside Michigan, said Ned Staebler, director of capital markets development at the Michigan Economic Development Corporation.

Eventually, Staebler said, the state should see double or triple returns on its nearly $6 million investment.

However, said Williams, the long-term nature of the investments is the only challenge she can perceive thus far with the process.

“The public will have to be patient and realize that these are complicated, long-term investments that won’t have returns for years,” she said.

Staebler said that rather than looking at the state’s short term monetary return on its investments, the best benchmarks for the success of the funds will be the types and quantity of companies created and how many jobs added in the state as a result of the investments.

In all, the state has allocated $32.5 million from the $95 million Venture Michigan Fund, money that is focused on assisting venture capital funds.

The state has allocated $47.5 million from the 21st Century Investment Fund, which is a $114 million tobacco settlement fund meant to invest in broader venture and mezzanine capital projects. Along with the five venture capital funds that have received state assistance, the 21st Century Fund has also allocated money to two private equity funds.

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