Michigan Pre-Seed Capital Fund is on a tear this year, investing $2.6 million in 12 start-ups so far this year and on pace for several more.
"Our average is 12 per year," says Skip Simms, manager of the Michigan Pre-Seed Capital Fund and a senior vice president at Ann Arbor SPARK
. "I don't anticipate we will make 12 more this year. It probably will be 6-10 more. We have approved three more. We just haven't closed on them yet."
The three most recent investments, totaling $600,000, have gone to a variety of Ann Arbor-based start-ups, including FlockTAG, FreeStride Therapeutics, and Larky. FlockTAG
is creating a mobile app loyalty system for quick service restaurants which creates a cross promotional platform with customized deals. FreeStride Therapeutics
is developing therapies for treatment of bone-related conditions. Larky's
application helps consumers manage discounts from retailers, membership organizations increase loyalty, and merchants generate business.
To date, the Michigan Pre-Seed Capital Fund
has awarded 75 Michigan companies with seed funding totaling more than $16.5 million. Those investments have allowed local start-ups to attract more than $22 million in matching grant and equity funds. They have also helped to create more than 120 jobs in Michigan.
The Michigan Pre-Seed Capital Fund is an equity fund that invests in technology-based companies to support business formation and acceleration. Ann Arbor SPARK serves as the Fund's administrator.
Source: Skip Simms, manager of the Michigan Pre-Seed Capital Fund
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.