The Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to early-stage capital to accelerate company development. Supported by a consortium of Michigan Smart Zones, these funds will extend the personal investment of entrepreneurs during the critical stage when they are developing their businesses to the point of readiness for outside investment.
- Advanced Automotive, Manufacturing, and Materials
- Alternative Energy
- Homeland Security and Defense
- Life Sciences
Eligible companies will need to be past the concept development and analysis phase, and have specific milestones identified for achieving commercialization suitable to a matching investing partner of the Pre-Seed Fund.
These needs might include hiring key management executives or specialized consultants, regulatory review, contract manufacturing agreements, marketing strategies and sales plans, etc. At this stage, the Pre-Seed Fund will be able to fund $50,000 to $250,000 per company alongside their investment partner who will provide a minimum dollar for dollar match.
The goal of the Pre-Seed Fund is to position these companies for follow-on investment. The concept of identifying early, matching investment partners with each company provides the company with a level of professional direction they would otherwise not have at this stage. These professional investors will also know how to garner the attention of the Venture Capital community at the appropriate time and facilitate the next level of investment for a win-win situation.
To begin the application process follow these steps:
1. Start with the checklist of things you will need to answer in preparation for funding.
2. Contact a SmartZone to review and help prepare your company for funding.
3. Decide with your SmartZone the milestones you must achieve with new funding that they will be able to help you with.
4. Secure the match of new cash you need for Pre-Seed Fund acceptance.
5. After completing the due diligence, the SmartZone will give you access to the application form.