MI Pre-seed Capital Fund changes announced
The state of Michigan, through the 21st Century Jobs Fund, has re-capitalized the Michigan Pre-seed Capital Fund. The award of $6.8 million was approved by the SEIC board in March.
There are two significant changes affecting distribution of this new money. One is the match for an investment is lowered to one-half to one. In other words to ask for a $200,000 investment from the fund a company only needs $100,000 of matching investment from others.
The other big change is that a portion of the fund will go toward a newly created micro loan program. About $1 million will be available in loans ranging in size from $10,000 to $50,000 for companies not quite in the pre-seed stage. No match is required.
Details about the fund and the new loan program will be presented at a meeting tomorrow (Tuesday, May 5) at noon at SPARK Central (330 E. Liberty, Ann Arbor). Skip Simms, Manager of the fund, and Tom Anderson with Automation Alley, one of two collaborators reviewing loan applications, will make the presentation. Information about the fund is also available on-line at www.annarborusa.org/start-ups/pre-seed-fund/ .