Start-ups will be able to receive funds to help them throughout the state, thanks to the Michigan Strategic Fund, which approved $3 million for Michigan Pre-Seed Fund III, according to Grand Rapids Business Journal.
Michigan State University (MSU) Foundation will administer the funds that were provided by the Michigan Economic Development Corporation (MEDC).
“For the last six years, the MSU Foundation’s venture creation apparatus has been under the radar, using their own financial resources to create a deep bench of individuals and service providers that have resulted in the formation of many promising, high-growth companies,” Fred Molnar, vice president of entrepreneurship and innovation at the MEDC told the news agency. “Their mission, track record and relationships across the state is a compelling story, and we’re excited to work with a team so committed to this important work.”
Molnar told Grand Rapids Business Journal that the funds will go to technology-based start-ups.
Jeff Wesley, the executive director of MSU Foundation's subsidiary Red Cedar Ventures, which will also oversee the fund, said that they wanted to use existing relationships to help support the start-ups.
“With this award from the MEDC, we’ll work with statewide SmartZones, university tech transfer offices, business acceleration service providers, and incubators and accelerators,” Wesley told Grand Rapids Business Journal.
Wesley said that the fund is unique because there are many people involved to pool many different experiences to help strategize for the start-ups.
“Our objective is to contribute to the state of Michigan’s entrepreneurial ecosystem with the goal of creating jobs, attracting and retaining talent and creating value,” David Washburn, MSU Foundation executive director, told the Business Journal. “Administering the Pre-Seed Fund III award will enhance our impact and help us extend our reach across the state.”
The fund is expected to be active by June 1.
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