MSU Foundation will manage the sector-agnostic vehicle, which will invest $100,000 to $250,000 in pre-seed rounds for Michigan-based businesses.
Michigan State University Foundation, the institution’s non-profit arm, has been selected to manage a $3m fund raised by regional public-private partnership Michigan Economic Development Corporation (MEDC).
Pre-Seed Fund III will foster local startups through the provison of a combination of equity funding, convertible notes and grants.
The vehicle is funded through the MEDC-run Michigan Strategic Fund (MSF) and was sanctioned on April 14. It will not begin investing until next month, subject to contractual negotiations.
Pre-Seed Fund III will supply $100,000 to $250,000 per round for each recipient, participating alongside co-investors such as MSU Foundation’s venture capital unit, Red Cedar Ventures.
Although sector-agnostic, the fund will broadly align to MSF’s technological priorities: advanced automotive, manufacturing, IT, materials, agricultural, alternative energy, defence and life sciences technology.
In addition to investment, Pre-Seed Fund III also offers support from a host of regional partners including VC investors, academic…
