GRAND RAPIDS – A consortium of regional partners, including the Michigan 21st Century Jobs Fund, have cobbled together a $10 million Venture Capital fund aimed at supporting early stage life science and technology companies.
Michigan Accelerator Fund I has been made possible through a $6 million award from the Michigan Economic Development Corporation and investments by regional partners. The total raise of $10 million is expected to be completed by early 2011 followed by the first investment activity.
MAF1 was developed specifically to leverage the hundreds of millions of dollars already invested in West Michigan?s science and research infrastructure by filling the region?s early stage funding gap. The Fund will drive forward the new economy of Michigan, providing a path to funding and partnerships for the commercialization of new regionally developed opportunities. MAF1 presents its university and research institution partners with a fresh channel for technology transfer funding.
While MAF1 will focus on healthcare and life sciences investments, a portion of its funding plan will be allocated to other important Michigan industries such as advanced manufacturing, alternative energy, and homeland security.
MAF1 is sponsored and supported by leading West Michigan investors, research organizations and socio-economic stakeholders, including:
Grand Valley State University
Van Andel Research Institute
Hope River Ventures
West Michigan Science & Technology Initiative
Grand Angels
Michigan State University Foundation
The Right Place
Lakeshore Advantage
MAF1 will be managed by John Kerschen and Dale Grogan, principals at The Charter Group, a Grand Rapids-based merger and acquisition advisory company.
?This Fund reflects the collaborative spirit and forward-looking leadership that has typified West Michigan over the years. We have an opportunity to accelerate the development of high-growth industries and the creation of knowledge-based jobs ? both of which are necessary for long-term economic success across our region,? Kerschen said.
Kerschen also noted that while more than 20 percent of the country?s research expenditures and patents occur in the Midwest region of seven states, less than 6 percent of venture capital investments occur in the region.
?We cannot simply wait and hope this situation changes. This Fund will help us more effectively chart our own economic path in the years ahead.?
In addition to providing early-stage capital for high-growth businesses, MAF1 will also include a number of programs aimed at enhancing the support infrastructure for emerging companies. These include:
Mentor-in-Residence Program: Two to three mentors will be identified who have deep industry and scientific expertise and are willing to proactively incubate opportunities until they are successfully launched.
Student Internships: As many as 10 Grand Valley State University Seidman School of Business students will be offered summer internships during the fund?s initial five years of operations.
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