Invest Detroit launches $4.2m First Capital Fund

Michigan Economic Development Corporation last month provided $2m to the fund, which has now secured an additional $2.2m from private investors.

Invest Detroit, a non-profit organisation focused on economic development, has launched a $4.2m fund backed by state-owned Michigan Economic Development Corporation (MEDC), MiBiz reported on Sunday.

MEDC supplied $2m to the First Capital Fund in December 2016, which has been matched with a total of $2.2m in commitments from the private sector – though these backers have not been named.

Invest Detroit will focus on technology startups in the commercialisation stage across Michigan, providing between $50,000 and $150,000, with the cash provided in tranches to companies. The fund is expected to be fully invested within two years.

The firm said it will source deals through the state’s 17 SmartZone incubators as well as conduct other outreach work.

In 2015, Invest Detroit provided a total of $451m in equity and loans to businesses, leveraging more than $1.42bn in total investments. The firm’s two VC funds injected a total of $6.4m in 86 companies with co-investments of a combined $300m during that same period.

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