MEDC Creating A Capital Supply Chain

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MEDC- Creating A Capital Supply Chain

• April 10, 2007

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MEDCs Mission

• The mission of the Michigan Economic Development
  Corporation, in collaboration with its local
  economic partners, is to transform the economy of
  our state to one in which 21st century businesses
  will provide desirable jobs in emerging sectors
  of commerce.

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• Emerging technology companies face a number of
  challenges
• Science/Technology
• Talent/Management
• Market
• Funding

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Funding challenges occur at all stages of a
companys development.

• MEDCs goal Identify the gaps and address them
  programmatically

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Capital Lifecycle
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Addressing Gaps
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Pre-seed Funds

• Through the 21st Century Jobs Fund, the MEDC has
  made over 20 million in designated pre-seed
  funds available to groups such as
• SmartZones
• Spark
• Automation Alley
• MUCI
• UTEAMED
• Nexus Tech

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Angel Tax Incentive

• Provides a tax deduction for successful angel
  investors
• Company must be certified by MSF at time of
  investment
• For more info www.michigan.org/angels

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21st Century Jobs FundCommercialization
Competition

• Loans and grants to For-Profits, Non-Profits,
  Universities
• Basic Research, Applied Research,
  Commercialization Activities, Commercialization
  Support Services
• Targets 4 competitive edge technology sectors
• Life Sciences
• Alternative Energy
• Homeland Security and Defense
• Advanced Automotive, Manufacturing, and Materials
• Awarded 135 million to 85 highly recommended
  projects- AAAS
• Next Round projected in 2007

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21st Century Investment Fund and Venture
Michigan Fund

• 2 separate programs poised to invest over 200
  million in venture capital, mezzanine, and
  private equity funds that invest in Michigan
• Will leverage over 600 million in private funds
• Both operate in fund of fund structure
• Both managed by Credit Suisse
• Already begun making investments and will
  continue over the next three years

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Loan Enhancement Programs

• Capital Access Program
• Charter One Job Creation Loan Program
• Others in Development

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• Thank you!
• QA