SSTI Digest

Michigan Gov. Rick Snyder recently signed a new law (HB 5273) that will allow for the creation of secondary markets through which intrastate crowdfunded securities can be listed, sold and resold. Under the new securities exemption, broker-dealers interested in establishing an exchange (online or in person) must apply and be registered with the state as well as follow rules of operation laid out in the legislation. They also must take steps to ensure that both businesses and investors are protected from fraud and are located in the state. The bill is intended to complement legislation passed earlier this year that will allow Michigan businesses to raise up to $2 million from non-accredited Michigan investors (Read related Digest Article). The creation of secondary markets provides a solution to one of the primary issues stalling intrastate crowdfunding across the country, a lack of liquidity due to the difficulty of connecting buyers with sellers. Read the bill…

James A. Anderson, the founder and CEO of Detroit-based retail consulting firm Urban Science, and his wife donated $25 million last week to support the entrepreneurial efforts of Wayne State University’s engineering and computer science faculty and students. The donation will establish The James and Patricia Anderson Engineering Ventures Institute, embedded within the university’s College of Engineering, a center to encourage faculty to commercialize new technologies, secure patents, and establish startup companies, while also providing mentors to young entrepreneurs and teaching best practices in innovation, tech transfer, and commercialization. Crain’s Detroit Business also reports the grant will fund five endowed chairs and several graduate scholarships, with an office set to be open and staffed by the end of the year. The family’s gift is part of Wayne State University’s Pivotal Moments fundraising campaign, which has now received more than half of its $750 million goal amount.

Lawmakers approved funding for a bond program that dedicates $50 million for re-tooling community colleges with the latest equipment, but failed to pass a larger proposal that would allow universities to compete for $100 million in bond funds for capital improvements to enhance engineering programs. The budget also includes $2 million to establish a new fund for global marketing of Michigan’s automotive sector and support of public-private collaborations with the auto industry.

Michigan now has 44 percent more venture capital firms and 86 percent more investment professionals than it did in 2009, according to a report released by the Michigan Venture Capital Association. While the state ranks near the middle of the pack for total venture investment dollars and per capita investment, the size of its venture capital community has shown strong growth over the past five years, led by healthy life science and information technology industries. The total amount of capital under management has also grown, from $1.1 billion to $1.6 billion during that period. Investment activity in Michigan appears to be increasingly targeted to smaller deals, resulting in twice as many deals in 2013 as in 2009. Download the report…

Groups in the greater Detroit and Pittsburgh regions recently released reports documenting the progress these metros have made over the past few years in building thriving technology economies. Detroit’s Automation Alley found that tech industry employment in the region grew by 15 percent in 2011, outpacing growth in all of the other 14 regions used as benchmarks in the study. A report on Pittsburgh’s investment economy, conducted by Ernst & Young LLP and Innovation Works, shows the region to have grown its per capita venture capital investment levels by 34.6 percent during the 2009-2013 period.

In response to declining appropriations and the termination of the Space Shuttle program, NASA has had to re-orient its approach to commercial partnerships. Over the past decade, NASA has turned to private partnerships to further the agency’s goals of space research and exploration. This same impulse has driven NASA to create regional partnerships to cultivate private space industry clusters and drive the development of the Commercial Crew program, which is highlighted as a core component of the agency’s FY15 budget proposal. These efforts have changed NASA’s role in regional, high-tech economic development from that of a research laboratory to a direct partner.