Money available to tech firms in state: Group will give out $6.6 million

BYLINE: Jewel Gopwani, Detroit Free Press

Jan. 4--A business development group is taking applications to dole out $6.6 million in start-up money for tech businesses in Michigan.

Ann Arbor SPARK will distribute the money, called the Michigan Pre-Seed Capital Fund, to new businesses focused on alternative energy, homeland security, life sciences and automotive research.

To qualify, business owners must be sponsored by one of the state's 12 SmartZones, which are clusters of tech businesses around universities across the state.

Business owners also must have additional funding from another investor, such as a venture capital fund.

Businesses will have a shot at getting a matching investment from SPARK of $50,000 to $250,000. Applications will go before a review board appointed by the SmartZones. The fund will take applications on a rolling basis. Businesses will receive a decision within a month of applying.

SPARK will have a stake in the companies that receive money and expects a return as these businesses become profitable. Those returns will serve as seed money for other businesses.

The money for the fund comes from the state's 21st Century Jobs Fund, which last year awarded more than $130 million to businesses and universities to accelerate the pace at which research turns commercial.

For more information, contact Ann Arbor SPARK at 734-761-9317, or call one of the SmartZones. Contact information can be found at www.michigan.org/medc/smartzones.

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