LANSING ? The long awaited $150 Million Venture Michigan Fund finally became reality last Friday when the fund, which will pour money into promising Michigan technology companies through Venture Capitalists, finally closed.
Jan Garfinkle, president of the Michigan Venture Capital Association, said Requests for Proposals from Venture Capitalists will be released by the state in September.
Michigan Economic Development Corp. spokesman Paul Krepps confirmed the Venture Michigan Fund had closed, but declined to provide any other details. An announcement is expected from Gov. Jennifer Granholm?s office soon.
Granholm had signed the legislation creating the fund in July 2005, but for unexplained reasons, closing the fund took more than a year.
The capital used by the Fund will come through the sale of debt instruments to Michigan-based banks, insurance companies and other corporations.
Credit Suisse First Boston was chosen last year to serve as fund manager. CSFB Managing Director Kelly Williams heads up the team managing the Fund.
The VMF investment policy requires that venture capital funds should have a substantial presence in Michigan and promote at least a $2 investment in qualified businesses for every $1 of principal investment. No more than 15 percent of the total capital and outstanding commitments of the fund shall be invested in any single venture capital company and no investment committed to any venture company shall exceed 25 percent of the venture capital company?s total capital under management.
Spearheading the original legislation was Mitch Mondry, former president of the Michigan Venture Capital Association. Earlier, Mondry said the Venture Michigan Fund is just one more piece to the funding puzzle added in the past few years in Michigan. More Venture funds have been raised in the state; there have been new efforts by governments and universities to remove the road blocks to technology commercialization; and management talent to make those transfers move smoother have been recruited to Michigan.
