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Michigan Governor Signs $150 Million Venture Capital Bill

The Michigan Venture Capital Association (MVCA) announced today that Governor Jennifer Granholm signed the bill that creates a $150 million venture capital fund for investors of early stage companies in the state of Michigan. The MVCA supported the creation of the Michigan Early Stage Venture Capital Investment Corporation, now known as MVIC (Michigan Venture Investment Corporation).

By:
Press Release
Michigan Venture Capital Association

"Early stage venture capital is vital to helping Michigan entrepreneurs move outstanding research from the laboratory to the marketplace," said Don Jakeway, Michigan Economic Development Corporation president and chief executive officer. "MVIC has the potential of leveraging $750 million to $1 billion of new venture capital funds in the region over the next five to seven years."

New Source of Capital for Michigan Companies

"MVIC carries great promise for start-up and early stage companies as well as the prosperity of Michigan’s economy," said Mitchell Mondry, president of the MVCA and co-founder and vice president of the venture capital firm M Group of Birmingham. "MVIC will create a new source of needed capital to fuel the growth of Michigan companies and industries into the future."

Key benefits to MVIC include the creation of new jobs while diversifying the economy through the support of new businesses and new industries. In accomplishing this, MVIC will have no affect on the state budget for five years and is likely to never impact it.

MVIC will be directed by a seven member board which will include the state treasurer, the CEO of the Michigan Economic Development Corporation, two candidates to be selected by the Governor, one by the Senate, one by the House of Representatives, and one by the Michigan Venture Capital Association.

At the end of 2003, the Senate passed the bill unanimously while facing minimal opposition in the House.

"This is great news for the state of Michigan," said Dick Eidswick, managing partner of Arbor Partners and founding president of the MVCA. "MVIC will provide capital for early stage businesses based in Michigan, it will create thousands of new jobs and will also establish Michigan as a leader in numerous future industries."
Key Milestone for the State

This is an important step in the direction of driving a more diversified and knowledge based economy in Michigan," said Barry Broome, CEO and executive director of Southwest Michigan First of Kalamazoo. "The Governor’s leadership on this issue should be commended. It is an important milestone for our state which needs to become an industry leader in the creation of new business ventures."

Supported by the MVCA, the fund will provide money to venture capital firms in Michigan that in turn will invest in Michigan companies in their areas of specialization including information technology, life sciences, advanced manufacturing, and alternative energy technologies.

About MVCA
Established by venture capital and private equity investors in the state, the Michigan VCA is the state’s premier public policy advocate for the venture capital industry, working to promote entrepreneurism and early-stage investment. The MVCA, founded in 2002, works to improve the environment for innovation while also stimulating economic development. Its membership includes venture capital firms, professional services, economic development organizations and angel investors from all areas of the state.

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