February 16, 2009
Three more Michigan start-up companies received investment commitments in January through the Michigan Pre-Seed Capital Fund. To date, 30 Michigan companies have received critical seed funding through the Michigan Pre-Seed Capital Fund, a collaborative effort of Michigan’s 12 SmartZones.
“It’s a myth that businesses aren’t starting up right now and finding funding in this economy,” said Skip Simms, administrator, Michigan Pre-Seed Capital Fund. “Innovative businesses with a solid business plan are attracting funding and choosing Michigan to locate and grow. The Michigan Pre-Seed Capital Fund is a significant resource in helping companies in the critical start-up phase with funding needed to take business to the next level.”
Recent funding recipients are:
SenSound, sponsored by TechTown, develops and markets software, testing services and integrated testing systems for aerospace, medical device, automotive, consumer appliance, and industrial machinery manufacturers.
Creative Byline, sponsored by West Michigan Science and Technology Initiative, is a new model for the book publishing industry that brings together people who write books and publishers who buy them.
Biotectix, sponsored by Ann Arbor SPARK, partners with biomedical device manufacturers to develop and implement customized materials that improve the safety, longevity, reliability, biological interaction, and energy-efficiency of their devices.
The Michigan Pre-Seed Capital Fund, a collaborative effort of Michigan’s 12 SmartZones, is an equity fund that invests in technology-based companies to support business formation and acceleration. Each SmartZone is responsible for recommending an investor to the Michigan Pre-Seed Capital Fund review board. Ann Arbor SPARK serves as the Fund’s administrator.
To qualify for the Michigan Pre-Seed Capital Fund, start-up companies must be a representative of one of the state’s identified competitive technologies and have the sponsorship of its local SmartZone. In addition to SmartZone sponsorship, companies must have received grant, angel or venture capital funding greater or equal to funding requested of the Michigan Pre-Seed Capital Fund.
The Michigan Pre-Seed Capital Fund is an equity investment fund and, as such, will receive the same returns as the third party investor. The returns that the Michigan Pre-Seed Capital Fund receives from its investments will serve as seed money for the Fund’s continuation.
About Ann Arbor SPARK
Ann Arbor SPARK, a non-profit organization, is the driving force in establishing the Ann Arbor region as a destination for business expansion, retention, and location by identifying and meeting the needs of business at every stage, from startups to large organizations. Ann Arbor SPARK represents all communities in the Washtenaw County. Ann Arbor SPARK collaborates with business, academic, government, and community investor partners including the University of Michigan, Eastern Michigan University, the Herbert and Grace Dow Foundation, Washtenaw County, the City of Ann Arbor, the Bank of Ann Arbor and the Michigan Economic Development Corporation. For more information, please call (734) 761-9317 or visit www.AnnArborUSA.org.
