State funds more local tech projects 21st Century Jobs Fund doles out more
News Business Reporter
Seven projects in Ann Arbor and one in Livingston County received nearly $19 million in a second round of funding from the state's 21st Century Jobs Fund competition.
That brings to 36 the number of Ann Arbor area projects that received money from the state designed to stimulate technology research and transform it into products and create high-tech jobs.
The additional funding was approved Monday morning at a meeting of the Michigan Strategic Economic Investment and Commercialization Board and is in addition to the $101 million awarded statewide in September.
"I think it's really great that the state could get their way through to do that," said Michael Long, president and chief executive officer of Velcura Therapeutics Inc., an Ann Arbor startup and University of Michigan spinoff that received $2 million. "This is really good for the state because these people all had highly recommended projects that will be funded. It will strengthen the life sciences in the state."
Velcura is developing bone-building therapies to treat diseases such as osteoporosis, which affects both men and women as they age. Long estimates that 100 million men and women worldwide could be targets for Velcura products.
Long said the money will have a significant impact on what Velcura's eight employees can accomplish in the next year.
"It's a critical year for our company - we want to get the drug into clinical trials," Long said. "That's an important benchmark for a life sciences company."
Long said he plans to hire at least four new people. "It's really wonderful. There are a lot of companies on the cusp out there."
Ann Arbor Spark, Washtenaw County's economic development agency, received $8 million. It has partnered with 11 SmartZones across the state to use its funding for its Pre-Seed Capital Fund. SmartZones are collaborations between universities, industry and government to develop technology businesses in Michigan communities.
The $8 million will be used to fund entrepreneurs who are working in Michigan's four technology sectors and who have solid business plans and matching private equity funding, said Mike Finney, president and CEO of Spark.
"In Spark's case, this is another critical piece of the puzzle of entrepreneurial infrastructure that needs to be in place as companies move from early development to commercialization," he said. Funding decisions will be made by a qualified review committee, said Finney, who will not be on the committee.
The 24 second-round projects, plus the original 60 that received $101 million last month, had "highly recommended" ratings from the American Association for the Advancement of Science. The competition, which began with more than 500 submitted proposals, is part of Gov. Jennifer Granholm's $2 billion, 10-year 21st Century Jobs Fund program.
The Michigan Strategic Fund board authorized the additional $35 million on Sept. 27, providing funding for the remainder of the "highly recommended" projects.
To qualify, projects needed to be in four technology areas identified by the state as critical to its economic future: advanced manufacturing, life sciences, alternative energy and homeland security and defense.
The money comes from a portion of the state's tobacco settlement. If a university or nonprofit sponsors the project, a grant is awarded; it's a loan when a for-profit business manages the project. The initiative is administered by the Michigan Economic Development Corp.
The original 61 projects funded dropped to 60 when one of the teams opted out of the process, an MEDC spokesman said.
Funding recipients will meet in Novi today to learn more about their contracts with the state. At least some of the money for the projects is expected to go out by the end of the year.
The contracts between the MEDC and the organizations establish conditions and mileposts for funds to be delivered. Portfolio managers will oversee the progress of the projects.
Contact Jenny Rode at jrode@annarbornews.comor 734-994-6843.