The board of directors of the Michigan Strategic Fund has approved $6.8 million for the Michigan Pre-Seed Fund 2.0, a statewide investment fund aimed at supporting high-tech early stage companies.
The fund will be managed by InvestMichigan, a new nonprofit corporation based in Detroit that is managed by Charlie Moret, who previously ran Connecticut’s pre-seed fund and most recently was managing director of technology-based entrepreneurship at Detroit’s TechTown.
The $6.8 million comes from the Michigan Economic Development Corp., which plans to leverage at least $8 in outside investment for every dollar it invests in companies.
“These pre-seed funds are intended to help innovative companies take those last steps to become commercially viable and more attractive to private investors,” said Paula Sorrell, the MEDC’s vice president of entrepreneurship and innovation, in a news release.
“With the wealth of entrepreneurial talent we have in Michigan, we want to make sure good ideas turn into businesses that help expand and strengthen the state economy.”
The fund will invest $5.8 million into high-tech startups and $1 million into the University Commercialization Fund to help universities transfer technology to the marketplace.