Capital Will Support Michigan Early Stage Growth Companies

August 4th, 2004

State Treasurer Jay B. Rising, as President of the Venture Michigan Fund, today announced that a request for proposals has been issued to identify fund managers for the state-backed $150 million Venture Michigan Fund. The fund is designed to give Michigan technology start-up companies access to the venture capital needed to become successful job-producing businesses.  

In her 2004 State of the State address, Governor Jennifer M. Granholm proposed the formation of the fund as part of her plan to make Michigan a global economic powerhouse in the 21^st century.

“Michigan has a great legacy as the cradle of invention and innovation,” Governor Granholm said. “Making venture capital available to Michigan’s entrepreneurs is part of our strategy to help businesses take root in Michigan and grow new jobs at every stage of development.”

The Venture Michigan Fund is expected to raise capital through the sale of debt instruments to Michigan-based banks, insurance companies and other corporations. The capital will be invested into venture capital firms with a significant Michigan presence.

The Venture Michigan Fund has been established as a Michigan nonprofit corporation governed by a seven-member board. Board members, appointed by the Governor, include the State Treasurer, the CEO of the Michigan Economic Development Corporation, a member nominated by the Michigan Venture Capital Association, a member nominated by the Speaker of the state House of Representatives, a member nominated by the state Senate Majority Leader and two members with experience in finance and business investment.

 “Soliciting proposals of professional investment advisors to act as fund managers is the first step in our efforts to make a strategic investment in our economic future – a future that will be driven by the vision and creativity of Michigan’s entrepreneurs,” Rising said. 

“This fund will prove to be a powerful resource for Michigan investors and entrepreneurs alike,” said Rising. “Hiring a fund manager will be a major step forward in getting the fund up and running.”

Questions regarding the request for proposal process may be forwarded via e-mail to: info@venturemichiganfund.org. Proposals are due on August 31, 2004 via e-mail to the same address.  

The Venture Michigan Fund, a Michigan nonprofit corporation, promotes Michigan’s economic health by assisting in the creation of new jobs, new businesses, and new industries within Michigan through investment in early stage growth companies. For more information on the Venture Michigan Fund, visit the website at www.venturemichiganfund.org.