Your SlideShare is downloading. ×
Pure Michigan Entrepreneurial Bus Tour 2012 Presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Pure Michigan Entrepreneurial Bus Tour 2012 Presentation

1,362
views

Published on

In this presentation, learn what state services and funding are available for growing technology companies. Each year, the Michigan Economic Development Corporation (MEDC) dedicates $25 million to …

In this presentation, learn what state services and funding are available for growing technology companies. Each year, the Michigan Economic Development Corporation (MEDC) dedicates $25 million to help build companies with high growth potential. The MEDC is organizing a statewide bus tour to educate early-stage tech companies on programs ranging from business support to venture capital. Visit http://www.michiganadvantage.org/Entrepreneurs-and-Innovators/

Published in: Economy & Finance, Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,362
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
35
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Entrepreneurial Services Bus Tour Business Technical Training Capital Advice Support Talent Technology Assistance Program Michigan Pre-Seed Capital Fund
  • 2. What is the MEDC?• Michigan Economic Development Corporation• Created in April 1999 by an Interlocal Agreement• Bi-partisan support• Partnership between the Michigan Strategic Fund for the State and 65 local economic development partners, 86 corporate partners, 73 Convention & Visitors’ Bureaus, and 20 member Executive Committee• Located in Lansing 2
  • 3. .Seven strategic initiatives are aligned to drive job growth1 2 3 4 5 6 7 Entrepre- Business Access to Vibrant Seamless Talent Image neurship Growth Capital Communities Delivery • Smart Zones • University programs • Support services This memorandum is advisory in nature and is preliminary to a final agency determination of policy or action. 3
  • 4. $25MM/yr Focused on High Tech• Eco-System• Tobacco/Casino• Currently 34 programs• All have eligibility requirements and screening processes• Focus on returns to the state/evergreen• Encourage volunteerism and mentorship• Leverage federal funds
  • 5. Targets for Support• Applied research through first significant round of institutional funding• Technology companies with high potential for exponential growth
  • 6. Help and Funding at Each StageINVESTIGATION FEASIBILITY DEVELOPMENT INTRODUCTION GROWTH MATURITYPROOF OF CONCEPT SEED START-UP EARLY FIRST, SECOND SALE… SBIR/STTR Emerging Technology Fund GLEQ MUCI Accelerate Mich Angel Fund Pre-Seed /BRCC Venture Match Business Acceleration Fund T3N MVCA BBC Technology Assistance Program SBTDC
  • 7. The Quick Run-Through• 20+ programs• Q’s for the hosts – FAQ’s to go on website• More data to be found at www.michiganadvantage.org – “Entrepreneurs & Innovators”
  • 8. Introducing… Great Lakes Entrepreneur’s QuestHelping Michigan’s startup entrepreneurs connect with and leverage their use of support resources. Here’s how…
  • 9. Great Lakes Entrepreneur’s QuestGLEQ Business Plan Competition
  • 10. We involve you in the GLEQ Business Plan Competition:• Easy to Understand – Win money, meet investors• Open to all early-stage Michigan-based ventures• Student teams welcome – convenient semester-based schedule• No preparation necessary – Create documents during the competition• Twice each year – Continuous opportunity to get involved I
  • 11. Once you’re on board, you get:– One-to-one coaching– Events and opportunities – 100+ each month– Introductions to support organizations and education programs– Exposure and introductions to investors– Suggested next steps– Pushed to finish your business plan– Potential to win awards and prizesAnd…– Preparation for key opportunities – top winners go to AMIC, MGCS, Pitch Nights
  • 12. GLEQ Winners Making 2011 AMIC Finals:• Advanced Battery Concepts - 2009 Automation Alley Innovation Award for Advanced Manufacturing, 2009 NextEnergy Innovation Award for Alternative Energy; 2009 First Place - New Business Idea• Arbor Wind - Fall 2010 Second Place - Emerging Company• Blaze Medical Devices - 2007 First Place - New Business Idea• Current Motor Company - Fall 2009 First Place - Emerging Company• DeNovo Sciences - 2011 First Place - New Business Idea• Family Mint - 2010 First Place - New Business Idea• Fusion Coolant Systems - Fall 2010 First Place - Emerging Company• InPore Technologies, Inc. - 2010 SmartZone Award Winner• NextCAT - 2011 Automation Alley Innovation Award for Advanced Manufacturing• OcuSciences - 2008 Grand Prize - Emerging Company• ONL Therapeutics - Fall 2010 Second Place - New Business Idea• Syzygy Biotech - 2011 SmartZone Award Winner• TherapyCharts - 2010 Best of Biotech - New Business Idea• White Pines Systems - Fall 2009 Third Place - Emerging Company
  • 13. GLEQ awards in June:• SmartZone Award: $100,000 (convertible debt investment)• Emerging Company Awards: $25,000 - $15,000 - $10,000• New Business Idea Awards: $5,000 - $2,500 - $1,000• Innovation Awards: – NextEnergy Alternative Energy - $10,000 – Automation Alley Advanced Manufacturing - $12,500 – GFPI Food Safety and Water Quality: $10,000 – Software, Network Security Award: $10,000 – Medical Device: $10,000• Opportunity Awards: – Accelerate Michigan Innovation Competition – Semi-Finalist Position – Michigan Growth Capital Symposium – Presentation Slot
  • 14. What Entrepreneurs Say:About Coaches I just wanted to say THANK YOU for connecting me with Brian Finn. He has been a tremendous help, even after just one phone conversation! Thanks again! Cason Thorsby, Dixie Daves Wild Game Soup Co., Mt. Pleasant (referring to Brian Finn, Grand Rapids, former Vice President of Marketing, Sara Lee) About Opportunities I just wanted to say thank you for keeping us on your e-mail list even though we are not competing in the GLEQ this cycle, and for letting us know of upcoming events. Due to your e-mail updates, we are one of the finalists in the SAE/MIT program. We would not have known of this opportunity otherwise. Jim Ryznar, OPS Solutions
  • 15. Value and Effectiveness:• 12 years, 2,200 Ventures and 6,800 Individual Entrepreneurs in BPC and Educational Programs• Last 2 Years - 860 Ventures and 2,000 Individual Entrepreneurs• Up to 300 Ventures in competitions• Boost Pitch Competitions - 220 Entrepreneurs, 20 engaged with investors• 2011 Michigan Growth Capital Symposium presentations - 17 out of 32 Michigan-based companies• 2011 Rice Business Plan Competition second place winner, AYaH• 2009 MIT Clean Energy Prize first place winner, Husk
  • 16. Current competition cycle:• Registered ventures are working with coaches• Registration still available for Global Food Protection Institute award• Documents are due April 30 and May 14• Entrepreneur Connect, Lansing – Tuesday, June 12 www.entrepreneurconnectmi.org – Workshops and Panel Discussions – Consultants Corridor – Elevator Pitch Competition – Ask-the-Investors – GLEQ Business Plan Competition Awards
  • 17. Fall competition cycle:• Open for registration – late August• Coach matching – mid-October• Documents due – mid-December• Awards presented at ACE’13 – late January www.ACE-event.org
  • 18. Other ways to get involved:• Become a GLEQ Ambassador – spread the word• Encourage entrepreneurs to join the competition• Volunteer to Coach – share your expertise• Share the monthly calendar• Send us your events and opportunities
  • 19. Volunteer:Ambassadors, Coaches, and Judges
  • 20. GLEQ Award Winners - June 2011 SmartZone Award Syzygy Biotech Solutions, WMSTI (Grand Rapids) Emerging Company Clean Energy Innovation (Bloomfield) MitoStem, TechTown (Detroit) New Business Idea DeNovo Sciences (Ypsilanti) ONL Therapeutics (Ann Arbor) Automation Alley Innovation Award NextCAT, TechTown (Detroit) GLITR Award Clean World Fuels (Macomb Township)
  • 21. www.GLEQ.orgDiane Durance, Executive Director734-255-3183Diane@GLEQ.orgJack Ahrens, TGap Ventures;Chairman, GLEQ Board of DirectorsJAhrens620@aol.com
  • 22. Michigan SBIR/STTR Assistance Program Managed by: BBC Entrepreneurial Training Corporation803 N. Main Street, Ann Arbor, MI 48104 30www.bbcetc.com
  • 23. What is the SBIR/STTR Program? A $2 Billion+ Federal Funding ProgramStimulate technological innovationTo develop products with commercial merit
  • 24. Participating Agencies* SBIR STTR SBIR OnlyDOD - $1,200 m USDA - $19 m HHS - $690 m DOT - $4 mNASA - $138 m EPA - $7 m NSF - $105 m DOC - $9 m DOE - $102 m DoED - $8 m DHS - $30 m TOTAL: >$2.4 B FY 2010 *www.sbir.gov 32
  • 25. MI SBIR/STTR ASSISTANCE PROGRAMGOALS• Increase the number of applications from Michigan• Increase the quality of applications from MichiganPROGRAM COMPONENTS• Training• One-on-one Proposal Assistance• Outreach 33
  • 26. TrainingPrimary Training• SBIR/STTR 101: ½ day ($50)• Agency Specific Proposal Preparation: – NIH: 2 days ($125) – NSF, DoE, or DoD: 1 day ($75)Other Training• Commercialization Plan Development: ½ day ($50)• Electronic Submission: webinar ($25)• Accounting/Grants Mgmt: webinar series ($25 ea) http://www.bbcetc.com/training.html 34
  • 27. One-on-one Assistance: Eligibility Located in Michigan Focused on commercialization of technology Meet requirements of an SBIR/STTR solicitation Must attend agency specific proposal preparation SBIR/STTR Training Must have qualified PI and project Must have sufficient time prior to deadline Fees – only due if SBIR/STTR is funded: - $1500 Funded Phase I - $5000 Funded Phase II 35
  • 28. Outreach Intro Training Assessment Training* 1-on-1 Proposal Assistance Proposal Submitted* required for 1-on-1 assistance 36
  • 29. Why Participate??Over $100 million awarded to MI client companies since 2002Proposal funding rates 2-3x the national average 37
  • 30. SBIR/STTR Matching - MI• Match up to $25k for Phase I, $125k Phase II• Requires third party match• MUST APPLY PRIOR TO SBIR SUBMISSION www.mietf.org 38
  • 31. • Lisa M. Kurek, MS – Managing Partner• Michael P. Kurek, PhD, MBA – Partner• Andrea Johanson, PhD – Principal Consultant• Bhramara Tirupati, PhD – Principal Consultant• Kris Bergman – Consultant, Grants and Contract Management• Jayne Berkaw – Director, Marketing and Outreach• Marilyn (Mickey) Katz-Pek – Partner Emerita & Founder 734.930.9741 info@bioconsultants.com www.bbcetc.com 39
  • 32. MEDC Entrepreneurial Services Bus Tour April, 2012
  • 33. NextEnergy’s Mission NextEnergy is a non profit organization with a mission to accelerate energy security, economic competitiveness, and environmental responsibility through the growth of advanced energy technologies, businesses, and industries in Michigan41
  • 34. NextEnergy Core Competencies Technology Validation & Demonstration Programs  Collaborative RD&D programs, testing and validation  History of over $100M under management Industry and Venture Development  Technology and business model vetting  Venture development and acceleration  Market and value chain gap analysis  Strategic partner matchmaking and business development Cluster Development & Public Sector Leadership  Strategic stakeholder convening and consortium management  Support for policy makers and public interest programs42
  • 35. Physical Assets & Facilities Offices, Labs, Testing and Validation Platforms Demonstration & Meeting Center 18,500sf of Lab Space Alternative Fuels Testing Platform V2G MicroGrid Testing Platform43
  • 36. NextEnergy Staff  Senior staff has over 150 years combined R&D, Product Development, Manufacturing and Commercialization experience in energy  10 staff Engineers (Electrical, Mechanical, Chemical, Civil/Environmental)  4 with advanced degrees within electrical, mechanical and alternative energy  2 staff members with Science Degrees (Chemistry, Physics, Biology)  5 staff members with Advanced Business Degrees  Investor relations professional  Network of technology and market specialists under contract44
  • 37. NextEnergy Focus Areas Energy Storage Power Electronics Vehicle Electrification Smart Grid Next Generation Energy Efficiency Renewable Energy What’s Next?45
  • 38. NextEnergy Service Offerings to Entrepreneurs *Applies to both early stage and mature firms Business Advisory Service  Review technical merit, market potential and business model  Access to energy sector market analysis, value chain assessments and technology roadmaps Technology/Product Development Support  Provide venue for technology demonstration and testing including lab space  Collaborative R&D Projects  Introductions to research/product development partners 46
  • 39. NextEnergy Service Offerings to Entrepreneurs *Applies to both early stage and mature firms  Business Development Support  Involvement in industry working groups, cluster networks  Introductions to customers, go-to-market partners, suppliers  Funding Support  Funding opportunity awareness, strategy and approach  Introductions to federal agency leads (DOE, DOD, ARPA-E), angel investors, cleantech venture capital, corporate venture arms  Sponsor GLEQ Energy Innovation Award47
  • 40. 48
  • 41. NextEnergy Contacts Market Analysis: Dan Radomski – danr@nextenergy.org Technical Support: Roland Kibler – rolandk@nextenergy.org Private Investment: Sam Hogg – samh@nextenergy.org Government Relations: Jim Saber – saberj@nextenergy.org Business Development: Gary Gauthier – garyg@nextenergy.org Testing & Demonstration: Bill Siddall – williams@nextenergy.org CEO: Ron Gardhouse – rong@nextenergy.orgNextEnergy461 BurroughsDetroit, MI313-833-0100www.nextenergy.org
  • 42. University of Michigan Office of the Vice President for Research Institute for Research on Labor, Employment, and the Economy (IRLEE) Marian Krzyzowski, IRLEE Director Larry Molnar, IRLEE Associate Director, Center for Business Acceleration and Incubation Studies (CBAIS), DirectorTechnology and Commercialization Assistance(TCA) ProgramSteve Wilson, Director
  • 43. Technology and Commercialization Assistance (TCA) Program TCA fosters the proactive transfer of new technologies to existing businesses Existing Companies have Existing Resources Skillsets, Processes, Equipment, Management, Financial support
  • 44. Technology and Commercialization Assistance TCA identifies the capabilities and initiatives of existing companies and matches them with university technologies resident in Michigan universities  Financial review  Interviews with the management team  Technical review  Technology search  Facilitate technical discussions to select technology matches
  • 45. Technology and Commercialization Assistance Identifies supporting resources the company will need to successfully transfer new technologies into commercial application and provides assistance to engage and effectively utilize those resources  Define project Scope of Work (SOW)  Make contractual arrangements to execute SOW  TCA funds up to 50% of project cost  Monitor progress; identify high leverage points; drive positive outcomes
  • 46. TCA Project Examples• Expertise in highly compressible fluid dynamics at the University of Michigan assisting a client with the development of a new product• Petoskey, Michigan company adopting a plastics formula at Michigan State University to develop their next generation product; utilizing faculty, students, labs• Marketing projects assisting an Upper Peninsula firm with branding and positioning relative to new technology they are commercializing out of Michigan Tech; TCA continues to monitor progress for high leverage points
  • 47. Technology and Commercialization Assistance (TCA) Program Basic TCA Eligibility: Michigan Operations  Financially Stable  Committed to Growth  Strong Management Team  Technical Capability and Capacity  Desire to Adopt University Technologies
  • 48. Technology and Commercialization Assistance TCA also identifies, prescreens, and facilitates collaboration with existing companies that offer discounted or pro-bono services to university start- ups, either for the prospect of a future customer or as community service  Interviews with the management team  Technical review of talent and processes available  Facilitate technical collaboration with university start-ups
  • 49. Technology and Commercialization Assistance ProgramCurrently Kicking-off new partnerships with CMU-RC and MTEC SZs Providing a state-wide reach Companies and Technologies
  • 50. University of Michigan Office of the Vice President for Research Institute for Research on Labor, Employment, and the Economy (IRLEE)Business Assistance ProgramTechnology and Commercialization Assistance (TCA) ProgramSteve Wilson, Director www.irlee.umich.edu For More Information Contact: Steve Wilson sbwilson@umich.edu
  • 51. University Programs Melda Uzbil, M.E.M. University Relations DirectorMichigan Economic Development Corporation melda@michigan.org Tina Bissell MUCI/MIIE Business Manager University of Michigan tbissell@umich.edu
  • 52. University Programs• Technology Transfer Talent Network (T3N)• Michigan Corporate Relations Network (MCRN)• Michigan Initiative for Innovation and Entrepreneurship (MIIE)
  • 53. Tech Transfer Talent Network (T3N)• $2.43M over two years with a 1:1 match• Administered by your tech transfer office
  • 54. T3N – Three Focus Areas• Talent programs: – Mentor in Residence – Tech Transfer Fellows – Post-doc Fellowship • Talent Database • Talent Events
  • 55. Michigan Corporate Relations Network (www.michigancrn.org)
  • 56. Michigan Corporate Relations Network (www.michigancrn.org) Small Company Internship Small Instant Company Innovation Innovation Info Transfer Expertise Service Database
  • 57. University Programs Melda Uzbil melda@michigan.orghttp://www.michiganadvantage.org/Entreprene urs-and-Innovators/ www.michigancrn.org
  • 58. All 15 Michigan public universities collaborating to strengthen ties between business and academia by funding jointprojects, entrepreneurship education, and technology commercialization
  • 59. Methodology• 2 funding opportunities – Technology Commercialization Fund – Talent, Innovation & Entrepreneurship Education Fund• Competitive, peer-reviewed process• Proposal review by university technology transfer professionals and representatives from the Venture Capital and industry communities• Awards capped at $150K• Average award size is $57K
  • 60. $ for….• Technology Commercialization Fund –Provide gap funding to help launch university spin-off companies • Market research • Clinical / translational studies • Proof of concept • Business plan • Prototype preparation development
  • 61. $ for….• Talent, Innovation & Entrepreneurship Education Fund – Promote an entrepreneurial risk-taking culture – Provide experiential learning opportunities • Pilot project funding • Specific, individual university-industry partnering projects • Internship programs • Business plan competitions
  • 62. Quick Facts• 5 award cycles to date• $5 million to 90 projects to date• 7 start-ups are developing out of MIIE-funded technologies• RFPs scheduled for Contact Tina Bissell for details: – October 2012 734.647.5730 tbissell@umich.edu – April 2013 – October 2013
  • 63. MI-SBTDCMichigan Small Business and Technology Development CenterTechnology Commercialization Services Tech Team Emerging Technologies Fund Business Accelerator Fund
  • 64. The Michigan SBTDC TMThe Michigan SBTDC is funded through a cooperative agreementwith the U.S. Small Business Administration (SBA), the MichiganEconomic Development Corporation (MEDC) and matching fundsfrom Local Network partners in each region.MI-SBTDC State HeadquartersGrand Valley State UniversitySeidman College of Business616-331-7370www.misbtdc.org
  • 65. CORE SERVICES• Business Counseling/Coaching – no cost/confidential• Business Education – low or no cost• Secondary Market Research – low or no cost
  • 66. SERVICE DELIVERY TEAMS• Small Business Group – Core services : deliver or build team for client needs• Growth Group and Manufacturing Assistance Team – Well established / 2nd stage business specialists• Finance & Strategy Specialists (NEW) – Financial Growth and Control/Loan Assistance – Manufacturing finance and diversification specialists• Technology Team – Technology commercialization business specialists
  • 67. Are you a tech company?A business in which research and developmentbrings forth an innovative product or process.The innovation typically involves intellectualproperty that contributes to a strongcompetitive advantage in the marketplace, andserves as a foundation for a high rate of growth
  • 68. Technology Team Services Provided• Access to capital• Strategic planning and execution• Access to resources
  • 69. MI-SBTDC Tech ConsultantsAnna Bier, MS, MBA Physicist SBIR / STTRMary Sue Hoffman, J.D. Attorney Business assessments, due diligenceJason Pliml, BA Entrepreneur Investor pitch, business plan developmentJohn Balbach, MA Finance Financial Modeling, alternative financingTom Kelly, MBA Management Marketing and sales, managementKayo Ramirez, J.D. Attorney Venture Capital, business plan developmentDave Grossman, ME Engineer Technology roadmappingSandra Cochrane, MBA Life Sciences Business plan development, networking
  • 70. Impact! 2011 MI-SBTDC Tech Team Survey Results• $69,302,460 Capital Raised• 245 New Jobs Created• 59 Commercialized Products• Over 95% satisfaction rate
  • 71. For MI-SBTDC AssistanceFind your nearest MI-SBTDC office at www.misbtdc.org
  • 72. Emerging Technologies FundCommercialization Matching Funds for SBIR/STTR recipients
  • 73. Michigan Emerging Technology Fund•$5.6 Million allocated to the Fund Since 2008•State Match to Federal SBIR/STTR Awards•Commercialization Purposes ONLY•21st Century Jobs Fund Program
  • 74. Small Business Innovative Research (SBIR) Small Business Technology Transfer (STTR)•More than $2 billion federal research dollarsawarded to small business•Administered by SBA•Delivered through 11 federal agencies•SBIR/STTR assistance available to MichiganCompanies through MI-SBTDC and BBC Etc. www.sbir.gov
  • 75. SBIR/STTR Three Phase Program•Phase I - feasibility study •$100,000 range •6 months (12 month STTR)•Phase II – full R&D •$750,000 range •2 years•Phase III – commercialization •Use of non-SBIR/STTR funds
  • 76. ETF Awards•Through the MI ETF, the MI-SBTDC will match •Phase I – 25% of the federal award up to $25,000 •Phase II – 25% of the federal award up to $125,000•ETF matching awards are grants
  • 77. Eligibility Requirements• SBIR/STTR recipient must raise third party commercialization funding• Companies must submit ETF application prior to their SBIR/STTR deadline• Full eligibility requirements and FAQ at www.mietf.org
  • 78. Michigan Emerging Technology FundProgram Information and Online Applications www.mietf.org
  • 79. Impact!•Over $37 Million in SBIR/STTR leverage•Over $83 Million in Third Party Leverage•Over $4.6 Million in ETF awards disbursed•95 ETF Awards•Over 750 Applications•271 FTE Jobs Created & Retained
  • 80. Business Accelerator Fund• Pilot Program• Business Accelerator services available to companies regardless of location• 2 year $3 million “fund of funds” for Michigan’s business accelerator network• Maximum of $50,000 BAF funds per company
  • 81. Business Accelerator Engagements• Business consulting• Legal assistance• Technology consulting• Commercialization assistance
  • 82. Eligibility• Companies commercializing advanced technology• No more than $1 million in private sector investment• No more than $2.5 million in annual sales• Must be sponsored by a Participating Accelerator
  • 83. Find your Participating Accelerator www.misbtdc.org/BAF
  • 84. MICHIGAN PRE-SEED CAPITAL FUND A collaborative effort of the Michigan SmartZones
  • 85. Michigan Pre-Seed Capital Fund• The Michigan Pre-Seed Capital Fund supports emerging high- tech companies by providing access to early-stage capital: investment or loans.Pre-Seed – The stage of a start-up company1. Less than $1 million of trailing 12 month sales revenue2. Less than $1 million of outside private equity raised
  • 86. Funding Amount The Pre-Seed Fund will invest $50,000 to $250,000 per company alongside an investment partnerwho will provide a minimum 1:1 match.
  • 87. Criteria/EligibilityCompanies must meet the following criteria: – Michigan headquarters and majority of employees in state – company must have the rights (ownership or license) to innovative technology – pass the due diligence review of a SmartZone – have a match in the form of a term sheet or grant approvalThe following do not qualify for matching funds: • Other State monies • Sales revenues • Anything In-kind including salary deferrals • Other trade partner exchanges or trades
  • 88. Other Investment MattersBackground checks will be made on founder(s)/CEO paid by fund administrator.A company can only be approved for funding once.A company may reapply once.A convertible note will be the default investment instrument for companies without a term sheet.
  • 89. Application for InvestmentThe submission package must include:• Business plan (maximum 30 pages) – Company overview – Market information – Operations – Product description – Management – Use of funds – milestones – Financial history and projections• 5 year pro forma – Cash flow, P&L and Balance sheet forecasts – List of assumptions – Financial statements• Investor presentation• Matching source Term Sheet, proposal, grant approval, subscription agreement• Registration Certificate with the State of Michigan
  • 90. Funding Amount New Micro Loan FundProvides loans between $10,000 and $50,000 per company. No match requirement.
  • 91. ApplicationThe submission package must include:• Business plan (maximum 10 pages counting financial pages) – Company overview – Market information – Operations – Product description – Summary of management talent – Use of funds• Pro Forma 3 – 5 years• Entrepreneur Bio or CV (maximum 2 pages each)• Letter of support from SmartZone• Registration Certificate with the State of Michigan
  • 92. Loan Terms Subordinated Note: Subordinate to all other debt holders, current and future Interest rate is 12% Term is 2 years Other provisions: – No personal guarantee or collateral – No payment – balloon – No warrants or penalty for early payoff Reporting for five years – Quarterly financial statements – Number of employees and new hires – Sales – New IP – Grants and investments receivedhttp://www.annarborusa.org/business-accelerator/funding-incentives/ann-arborypsilanti-ldfa-microloan-program
  • 93. Michigan Angel Fund Investor Presentation
  • 94. Disciplined Investment Decision Making Methodology – 4 month process • Proactive deal origination • Methodical screening & diligence process • Not venture backable • ~8 investments in two years102
  • 95. Focused Investment Strategy Stages*: Pre- Seed, Seed, Early – Stage (both pre and post revenue) Industries*: Clean Tech Information Technology Advanced Manufacturing Health Care Geography: Michigan103 * Limited opportunistic investing outside targeted stages & industries
  • 96. Fund Investment Model - Company Criteria • Management DNA • Disruptive technology • Large market potential • Defensible • Limited funding requirements104
  • 97. Growing and Sustaining a Vibrant Venture Capital Community in Michigan www.michiganvca.org
  • 98. Mission and VisionMission: To Grow and Sustain a Vibrant Venture Capital Community in MichiganVision: In the year 2016, Michigan will have:  Abundant and accessible capital  Abundant and accessible entrepreneurial management talent  Many successful companies that have been financed by venture capital funds and angel groups/funds residing in Michigan and by venture capital funds which reside elsewhere  Many successful Michigan-based venture capital funds that invest both in Michigan and nationally , as well as angel groups/funds that invest in Michigan  Both venture and angel capital communities playing a meaningful role in Michigan’s revitalization  Become a nationally known top venture capital location  MVCA representing the voice of venture capital, angel capital &entrepreneurs
  • 99. MVCA Activities• Industry Research• Legislative Outreach – Educating legislators on the value Venture Capital creates in Michigan• Limited Partner Outreach – Educating LP’s on the value they can get from investing in Michigan based VC’s• Events – Networking and Education• Marketing, PR & Communication• Talent Programs
  • 100. MVCA Programs: EIR/CEO Placement• For Venture Funds within the state of Michigan.Entrepreneur in Residence:• Improve the number and quality of entrepreneurial C-level talent in Michigan-based portfolio companies• Successful entrepreneur works with VC firm for one year to identify an investment and placement opportunityCEO Placement Program:• Increases the number of venture-backed executives and the number of successful venture-backed companies in Michigan• Provides reimbursement for executive search costs and/or portion of 1st year salary
  • 101. MVCA Programs: Michigan Venture Fellows Program• Create the next generation of venture capitalists with track records in Michigan• Expanding job opportunities at Michigan venture capital firms• 18-24 month fellowship for graduate level candidates with 3-5 years industry experience
  • 102. MVCA Programs: Angel Network Growth Program• Support angel groups within the state of Michigan.• Rewards investment activity• Provides the angel group with additional resources to encourage and support further investment and growth in membership.• Supporting angel groups because investing through angel groups has been shown to provide for greater returns and a higher degree of success due to improved decision making processes.
  • 103. MEDC Company Investment ProgramsPure Michigan Venture Match Fund MEDC Follow on Fund Coming Attractions
  • 104. MEDC Follow on Fund• What is it?• How much is available? ~$1 million• Who is eligible?• Application Process• How do I find out more: –http://www.michiganadvantage.org/21 st-Century-Jobs-Fund-Administration/
  • 105. Pure Michigan Venture Match Fund• What is it?• How much is available? $5 million• Who is eligible?• Application process• How do I find out more: –http://www.michiganadvantage.org/P ure-Michigan-Venture-Match-Fund/
  • 106. What’s Next?• Pure Michigan Venture Match Fund• Pure Michigan Fund of Funds• Crowdsource Funding Contact: Michael Psarouthakis psarouthakism@michigan.org
  • 107. www.michiganadvantage.org Entrepreneurs & Innovators