A state venture capital fund awarding money to a local private venture capital fund might sound redundant on the surface but everyone involved in the deal to give $3.75 million from the Michigan 21st Century Investment Fund to RPM Ventures II thinks it’s a good idea.
RPM Ventures II will use the money to invest in IT, alternative energy and other new economy companies in the Midwest.
"This new fund with experienced principals connected with Michigan's university, research and business communities will support our efforts to create and grow new high-tech companies and good-paying jobs in Michigan," says James C. Epolito, president and CEO of the Michigan Economic Development Corporation.
Those experienced individuals of the Ann Arbor-based venture capital firm are Marc Weiser and Tony Grover. The pair works closely with the state's universities and research institutions, such as the University of Michigan. So much so that about one-third of their deals are first round spin outs from universities.
RPM also created the Michigan Alumni Venture Partners Network and sponsored the UofM Cleantech Conference. Weiser and Grover have invested $2.4 million in eight Michigan-based companies.
The 21st Century Investment Fund is part of the state's $2 billion 21st Century Jobs Fund. The 10-year initiative is working to diversify the state’s economy and grow high-tech companies and jobs. The fund can only invest in companies that have a strong Michigan presence. So far $58.75 million has been invested with the idea of creating and retaining new economy jobs in Michigan.
Source: Michigan Economic Development Corporation
Writer: Jon Zemke
THIS STORY FIRST APPEARED IN METROMODE
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