2 Ann Arbor VCs score Pure Michigan Venture Dev Fund investment

Two Ann Arbor-based venture capital firms have scored millions of dollars in backing from the Pure Michigan Venture Development Fund, which plans to make two more investments later this year. The Pure Michigan Venture Development Fund is a fund of funds, which means it's a venture capital firm that invests in smaller VCs. The $9 million fund invests in first- and second-generation venture capital firms that call Michigan home. It's first two investments were in Michigan eLab and Reasonant Venture Partners, both new VCs based in downtown Ann Arbor specializing in investing in tech start-ups. Each venture capital firm received $2.25 million each. "I anticipate by the end of the summer we should have awards announced for two more funds," says Mike Flanagan, manager of equity capital programs for the Michigan Economic Development Corp, which overseas the Pure Michigan Development Fund. Each of those funds will receive $2.25 million in investment. The staff at the MEDC and some members of Credit Suisse decide which firms qualify and which ones will receive the awards. It takes about 6-7 months to complete the due diligence. Source: Mike Flanagan, manager of equity capital programs for the Michigan Economic Development Corp Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.