News
January 23, 2007
Venture Michigan Fund I Makes First Investment Commitments To Boost Jobs and Entrepreneurial Business Growth in Michigan
Investment fund gains momentum on developing early stage companies leading to the creation of future Michigan-based jobs
SOUTHFIELD, Mich. — The Venture Michigan Fund I (VMF I) announced today its first round of investment commitments to three venture capital firms focused on growing early stage technology companies in Michigan. Individual investment amounts were not disclosed, but Credit Suisse’s Customized Fund Investment Group, the VMF I fund manager, will make investment commitments totaling $95 million to venture capital funds over a commitment period of up to three years.
The Venture Capital firms selected through a competitive RFP process to receive investment from Venture Michigan Fund I are:
- Arboretum Partners, based in Ann Arbor, is an early stage venture capital firm focusing on medical device, diagnostic and healthcare services investments
- Nth Power, the leading venture capital firm in the energy sector based in San Francisco, California
- Venture Investors, LLC, based in Madison, Wis., makes seed and early stage investments in Midwest-based health care and information technology companies
Nth Power will partner with Michigan-based NextEnergy to identify attractive early stage alternative energy opportunities located within Michigan, and Venture Investors, LLC, will open an office in Michigan.
“We were very pleased with the quantity and quality of the managers who responded to the Venture Michigan Fund,” said Kelly Williams, managing director of Credit Suisse’s Customized Fund Investment Group, the manager of VMF I. “Arboretum, Nth Power and Venture Investors each have demonstrated a real commitment to growing Michigan-based businesses and we are anxious to begin working with them.”
The Venture Michigan Fund was created in 2006 to grow and develop venture capital funds that have a presence in Michigan and that target investments in Michigan-based start-up companies engaged in research, technology and new product development. Fund investments will benefit a variety of emerging technologies including advanced manufacturing and industrial technology, alternative energy, health care and life sciences, homeland security and defense, and information technology. Venture capital funds receiving capital commitments will be required to invest in Michigan-based companies with at least an amount equal to the commitment received from VMF I.
“These three investments from the Venture Michigan Fund will significantly increase much needed venture capital for Michigan companies,” said Thomas Kinnear, chairman of the Venture Michigan Fund Board and director of the University of Michigan’s Samuel Zell and Robert H. Lurie Institute for Entreprenurial Studies. “It is especially exciting to note that recipients include a fund established in Michigan, a Midwest-based fund that will open an office in Michigan, and a California-based fund that is partnering with Michigan’s NextEnergy. Each of these funds will have a significant presence in Michigan and add to the number of venture capital firms active in our state.”
The Venture Michigan Fund, a Michigan nonprofit corporation, promotes Michigan’s economic health by fostering job creation, retention, and expansion through the promotion of investment in venture capital funds specializing in seed and early stage investments. VMF I is a $95 million venture capital fund investment program formed under the Michigan Early Stage Investment Act of 2003. For more information visit the VMF I website at www.venturemichiganfund.org.
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