The MSU Foundation-run Pre-Seed III Fund has secured an additional $6.5m from MEDC, more than a year after the vehicle was formed with $3m.

Pre-Seed III Fund, a vehicle operated by Michigan State University (MSU)’s endowment MSU Foundation, has secured an additional $6.5m of capital from public-private partnership Michigan Economic Development Corporation (MEDC)’s Michigan Strategic Fund.

Michigan Strategic Fund formed the Pre-Seed III Fund with $3m in April 2020, and it provides early-stage equity and convertible note funding for technology startups based in Michigan. MSU Foundation is running the vehicle through its Michigan Rise unit.

Fred Molnar, vice-president of entrepreneurship and innovation at MEDC, said: “The success of the Pre-Seed III Fund, through MSU Foundation’s leadership and expertise, is critical in terms of the return on investment it has generated from the companies it has supported.”

Michigan Rise director Prem Bodagala added: “Since the launch of Michigan Rise in August 2020, the fund has invested $3.5m in 24 companies which have cumulatively raised more than $99m in dilutive and non-dilutive funds.

“Nearly 80% of Michigan Rise portfolio companies are led by founders that have historically been underserved.”