Michigan’s investment in a couple of mezzanine funds is resulting in a new venture capital office in Ann Arbor.

The state’s 21st Century Investment Fund just invested $35.5 million into four funds. Among them is Cleveland-based Early Stage Partners ,which is getting a cool $10 million to invest venture capital into research companies in the Midwest. It plans to open an office in Ann Arbor soon as part of the deal.

Early Stage Partners provides early stage venture capital to research-based start-ups. Those companies are usually in the educational, scientific and medical industries.

The other three companies include Arsenal Venture Partners, which will receive $5 million and plans to open an office in Michigan soon, too. It also focuses on early stage venture capital but in the defense and commercial markets.  Detroit-based Peninsula Capital Partners, the state’s largest mezzanine fund, got $14.5 million. Triathlon Medical Ventures also received $10 million and plans to hire a Michigan-based full-time partner.

The 21st Century Investment Fund is part of Michigan’s 21st Century Jobs Fund. The $2-billion effort is focused on growing and diversifying the state’s economy over 10 years.

Source: Michigan Economic Development Corp
Writer: Jon Zemke