Ann Arbor firms secure investments from First Step Fund

Ann Arbor SPARK-related firms have made a strong showing in the first round of financing from the First Step Fund.Three of the seven firms that received five-figure loans either hailed from Ann Arbor or have a direct connection to Ann Arbor SPARK. Those three firms include Current Motor Company, Bandals and InfoReady for Grants. The other four start-ups came from Detroit’s TechTown incubator, which also controls the First Step Fund.”skjfh,” says skdjf. “skahjf.”Invest Detroit and Ann Arbor SPARK, which runs the Michigan Micro Loan Fund, created the First Step Fund. The idea is to create a funding source for local start-ups starving for seed capital.  The current credit crisis has resulted in traditional lending institutions cutting back on investment capital.Each loan averages about $50,000. They are either a short-term loan or a convertible note that will help younger start-ups get their feet underneath them. The money is usually used to help push forward product development or expand inventory.The First Step Fund expects to make 40 loans this year. The companies receiving the loans are picked by a board independent of TechTown. The next round of financing is not far away.”We next investment will be in mid June,” says Mahendra Ramsinghani, managing director of the First Step Fund and the husband of one of the co-founders of Concentrate’s parent company Issue Media Group.Source: Mahendra Ramsinghani, managing director of the First Step FundWriter: Jon Zemke