In this presentation, learn what state services and funding are available for growing technology companies. Each year, the Michigan Economic Development Corporation (MEDC) dedicates $25 million to help build companies with high growth potential. The MEDC is organizing a statewide bus tour to educate early-stage tech companies on programs ranging from business support to venture capital. Visit http://www.michiganadvantage.org/Entrepreneurs-and-Innovators/

1. Entrepreneurial Services Bus Tour
Business Technical Training
Capital Advice Support Talent
Technology
Assistance
Program
Michigan
Pre-Seed
Capital Fund

2. What is the MEDC?
• Michigan Economic Development Corporation
• Created in April 1999 by an Interlocal Agreement
• Bi-partisan support
• Partnership between the Michigan Strategic Fund for the
State and 65 local economic development partners, 86
corporate partners, 73 Convention & Visitors’ Bureaus, and
20 member Executive Committee
• Located in Lansing
2

3. .
Seven strategic initiatives are aligned to drive job growth
1 2 3 4 5 6 7
Entrepre- Business Access to Vibrant Seamless
Talent Image
neurship Growth Capital Communities Delivery
• Smart Zones
• University programs
• Support services
This memorandum is advisory in nature and is preliminary to a final agency determination of policy or action. 3

4. $25MM/yr Focused on High Tech
• Eco-System
• Tobacco/Casino
• Currently 34 programs
• All have eligibility requirements and screening
processes
• Focus on returns to the state/evergreen
• Encourage volunteerism and mentorship
• Leverage federal funds

5. Targets for Support
• Applied research through first significant round of institutional
funding
• Technology companies with high potential for exponential
growth

6. Help and Funding at Each Stage
INVESTIGATION FEASIBILITY DEVELOPMENT INTRODUCTION GROWTH MATURITY
PROOF OF CONCEPT SEED START-UP EARLY FIRST, SECOND SALE…
SBIR/STTR
Emerging Technology Fund
GLEQ
MUCI Accelerate
Mich Angel Fund
Pre-Seed /BRCC
Venture Match
Business Acceleration Fund
T3N MVCA
BBC
Technology Assistance Program
SBTDC

7. The Quick Run-Through
• 20+ programs
• Q’s for the hosts
– FAQ’s to go on website
• More data to be found at
www.michiganadvantage.org
– “Entrepreneurs & Innovators”

8. Introducing…
Great Lakes Entrepreneur’s Quest
Helping Michigan’s startup entrepreneurs connect with
and leverage their use of support resources.
Here’s how…

9. Great Lakes Entrepreneur’s Quest
GLEQ Business Plan Competition

10. We involve you in the GLEQ
Business Plan Competition:
• Easy to Understand – Win money, meet investors
• Open to all early-stage Michigan-based ventures
• Student teams welcome – convenient semester-based
schedule
• No preparation necessary – Create documents during the
competition
• Twice each year – Continuous opportunity to get involved I

11. Once you’re on board, you get:
– One-to-one coaching
– Events and opportunities – 100+ each month
– Introductions to support organizations and education
programs
– Exposure and introductions to investors
– Suggested next steps
– Pushed to finish your business plan
– Potential to win awards and prizes
And…
– Preparation for key opportunities – top winners go to
AMIC, MGCS, Pitch Nights

12. GLEQ Winners Making 2011 AMIC
Finals:
• Advanced Battery Concepts - 2009 Automation Alley Innovation Award for Advanced
Manufacturing, 2009 NextEnergy Innovation Award for Alternative Energy; 2009 First Place -
New Business Idea
• Arbor Wind - Fall 2010 Second Place - Emerging Company
• Blaze Medical Devices - 2007 First Place - New Business Idea
• Current Motor Company - Fall 2009 First Place - Emerging Company
• DeNovo Sciences - 2011 First Place - New Business Idea
• Family Mint - 2010 First Place - New Business Idea
• Fusion Coolant Systems - Fall 2010 First Place - Emerging Company
• InPore Technologies, Inc. - 2010 SmartZone Award Winner
• NextCAT - 2011 Automation Alley Innovation Award for Advanced Manufacturing
• OcuSciences - 2008 Grand Prize - Emerging Company
• ONL Therapeutics - Fall 2010 Second Place - New Business Idea
• Syzygy Biotech - 2011 SmartZone Award Winner
• TherapyCharts - 2010 Best of Biotech - New Business Idea
• White Pines Systems - Fall 2009 Third Place - Emerging Company

13. GLEQ awards in June:
• SmartZone Award: $100,000 (convertible debt investment)
• Emerging Company Awards: $25,000 - $15,000 - $10,000
• New Business Idea Awards: $5,000 - $2,500 - $1,000
• Innovation Awards:
– NextEnergy Alternative Energy - $10,000
– Automation Alley Advanced Manufacturing - $12,500
– GFPI Food Safety and Water Quality: $10,000
– Software, Network Security Award: $10,000
– Medical Device: $10,000
• Opportunity Awards:
– Accelerate Michigan Innovation Competition – Semi-Finalist
Position
– Michigan Growth Capital Symposium – Presentation Slot

14. What Entrepreneurs Say:
About Coaches
I just wanted to say THANK YOU for connecting me with Brian Finn.
He has been a tremendous help, even after just one phone
conversation! Thanks again!
Cason Thorsby, Dixie Dave's Wild Game Soup Co., Mt. Pleasant
(referring to Brian Finn, Grand Rapids, former
Vice President of Marketing, Sara Lee)
About Opportunities
I just wanted to say thank you for keeping us on your e-mail list even
though we are not competing in the GLEQ this cycle, and for letting
us know of upcoming events. Due to your e-mail updates, we are
one of the finalists in the SAE/MIT program. We would not have
known of this opportunity otherwise.
Jim Ryznar, OPS Solutions

15. Value and Effectiveness:
• 12 years, 2,200 Ventures and 6,800
Individual Entrepreneurs in BPC and
Educational Programs
• Last 2 Years - 860 Ventures and 2,000
Individual Entrepreneurs
• Up to 300 Ventures in competitions
• Boost Pitch Competitions - 220
Entrepreneurs, 20 engaged with investors
• 2011 Michigan Growth Capital Symposium
presentations - 17 out of 32 Michigan-based
companies
• 2011 Rice Business Plan Competition second
place winner, AYaH
• 2009 MIT Clean Energy Prize first place
winner, Husk

16. Current competition cycle:
• Registered ventures are working with coaches
• Registration still available for Global Food Protection
Institute award
• Documents are due April 30 and May 14
• Entrepreneur Connect, Lansing – Tuesday, June 12
www.entrepreneurconnectmi.org
– Workshops and Panel Discussions
– Consultants Corridor
– Elevator Pitch Competition
– Ask-the-Investors
– GLEQ Business Plan Competition Awards

17. Fall competition cycle:
• Open for registration – late August
• Coach matching – mid-October
• Documents due – mid-December
• Awards presented at ACE’13 – late January
www.ACE-event.org

18. Other ways to get involved:
• Become a GLEQ Ambassador – spread the word
• Encourage entrepreneurs to join the competition
• Volunteer to Coach – share your expertise
• Share the monthly calendar
• Send us your events and opportunities

19. Volunteer:
Ambassadors, Coaches, and Judges

20. GLEQ Award Winners - June 2011
SmartZone Award
Syzygy Biotech Solutions,
WMSTI (Grand Rapids)
Emerging Company
Clean Energy Innovation (Bloomfield)
MitoStem, TechTown (Detroit)
New Business Idea
DeNovo Sciences (Ypsilanti)
ONL Therapeutics (Ann Arbor)
Automation Alley Innovation Award
NextCAT, TechTown (Detroit)
GLITR Award
Clean World Fuels (Macomb Township)

21. www.GLEQ.org
Diane Durance, Executive Director
734-255-3183
Diane@GLEQ.org
Jack Ahrens, TGap Ventures;
Chairman, GLEQ Board of Directors
JAhrens620@aol.com

30. Michigan SBIR/STTR
Assistance Program
Managed by:
BBC Entrepreneurial Training
Corporation
803 N. Main Street, Ann Arbor, MI 48104
30
www.bbcetc.com

31. What is the SBIR/STTR Program?
A $2 Billion+ Federal Funding Program
Stimulate technological innovation
To develop products with commercial merit

32. Participating Agencies*
SBIR STTR SBIR Only
DOD - $1,200 m USDA - $19 m
HHS - $690 m DOT - $4 m
NASA - $138 m EPA - $7 m
NSF - $105 m DOC - $9 m
DOE - $102 m DoED - $8 m
DHS - $30 m
TOTAL: >$2.4 B FY 2010
*www.sbir.gov
32

33. MI SBIR/STTR ASSISTANCE PROGRAM
GOALS
• Increase the number of applications from Michigan
• Increase the quality of applications from Michigan
PROGRAM COMPONENTS
• Training
• One-on-one Proposal Assistance
• Outreach
33

34. Training
Primary Training
• SBIR/STTR 101: ½ day ($50)
• Agency Specific Proposal Preparation:
– NIH: 2 days ($125)
– NSF, DoE, or DoD: 1 day ($75)
Other Training
• Commercialization Plan Development: ½ day ($50)
• Electronic Submission: webinar ($25)
• Accounting/Grants Mgmt: webinar series ($25 ea)
http://www.bbcetc.com/training.html
34

35. One-on-one Assistance: Eligibility
 Located in Michigan
 Focused on commercialization of technology
 Meet requirements of an SBIR/STTR solicitation
 Must attend agency specific proposal preparation SBIR/STTR
Training
 Must have qualified PI and project
 Must have sufficient time prior to deadline
Fees – only due if SBIR/STTR is funded:
- $1500 Funded Phase I
- $5000 Funded Phase II
35

36. Outreach
Intro Training
Assessment
Training*
1-on-1 Proposal Assistance
Proposal Submitted
* required for 1-on-1 assistance
36

37. Why Participate??
Over $100 million awarded to MI client
companies since 2002
Proposal funding rates 2-3x the national
average
37

38. SBIR/STTR Matching - MI
• Match up to $25k for Phase I, $125k Phase II
• Requires third party match
• MUST APPLY PRIOR TO SBIR SUBMISSION
www.mietf.org
38

39. • Lisa M. Kurek, MS – Managing Partner
• Michael P. Kurek, PhD, MBA – Partner
• Andrea Johanson, PhD – Principal Consultant
• Bhramara Tirupati, PhD – Principal Consultant
• Kris Bergman – Consultant, Grants and Contract Management
• Jayne Berkaw – Director, Marketing and Outreach
• Marilyn (Mickey) Katz-Pek – Partner Emerita & Founder
734.930.9741
info@bioconsultants.com
www.bbcetc.com
39

40. MEDC Entrepreneurial Services Bus Tour
April, 2012

41. NextEnergy’s Mission
NextEnergy is a non profit
organization with a mission to
accelerate energy
security, economic
competitiveness, and
environmental responsibility
through the growth of
advanced energy
technologies, businesses, and
industries in Michigan
41

42. NextEnergy Core Competencies
 Technology Validation & Demonstration Programs
 Collaborative RD&D programs, testing and validation
 History of over $100M under management
 Industry and Venture Development
 Technology and business model vetting
 Venture development and acceleration
 Market and value chain gap analysis
 Strategic partner matchmaking and business development
 Cluster Development & Public Sector Leadership
 Strategic stakeholder convening and consortium management
 Support for policy makers and public interest programs
42

43. Physical Assets & Facilities
Offices, Labs, Testing and Validation Platforms
Demonstration & Meeting Center 18,500sf of Lab Space
Alternative Fuels Testing Platform V2G MicroGrid Testing Platform
43

44. NextEnergy Staff
 Senior staff has over 150 years combined R&D, Product
Development, Manufacturing and Commercialization experience in energy
 10 staff Engineers
(Electrical, Mechanical, Chemical, Civil/Environmental)
 4 with advanced degrees within electrical, mechanical and alternative
energy
 2 staff members with Science Degrees (Chemistry, Physics, Biology)
 5 staff members with Advanced Business Degrees
 Investor relations professional
 Network of technology and market specialists under contract
44

45. NextEnergy Focus Areas
 Energy Storage
 Power Electronics
 Vehicle Electrification
 Smart Grid
 Next Generation Energy Efficiency
 Renewable Energy
 What’s Next?
45

46. NextEnergy Service Offerings to Entrepreneurs
*Applies to both early stage and mature firms
 Business Advisory Service
 Review technical merit, market potential and business
model
 Access to energy sector market analysis, value chain
assessments and technology roadmaps
 Technology/Product Development Support
 Provide venue for technology demonstration and
testing including lab space
 Collaborative R&D Projects
 Introductions to research/product development partners
46

47. NextEnergy Service Offerings to Entrepreneurs
*Applies to both early stage and mature firms
 Business Development Support
 Involvement in industry working groups, cluster
networks
 Introductions to customers, go-to-market partners,
suppliers
 Funding Support
 Funding opportunity awareness, strategy and
approach
 Introductions to federal agency leads (DOE, DOD,
ARPA-E), angel investors, cleantech venture
capital, corporate venture arms
 Sponsor GLEQ Energy Innovation Award
47

48. 48

49. NextEnergy Contacts
 Market Analysis: Dan Radomski – danr@nextenergy.org
 Technical Support: Roland Kibler – rolandk@nextenergy.org
 Private Investment: Sam Hogg – samh@nextenergy.org
 Government Relations: Jim Saber – saberj@nextenergy.org
 Business Development: Gary Gauthier – garyg@nextenergy.org
 Testing & Demonstration: Bill Siddall – williams@nextenergy.org
 CEO: Ron Gardhouse – rong@nextenergy.org
NextEnergy
461 Burroughs
Detroit, MI
313-833-0100
www.nextenergy.org

50. University of Michigan
Office of the Vice President for Research
Institute for Research on Labor, Employment, and the Economy (IRLEE)
Marian Krzyzowski, IRLEE Director
Larry Molnar, IRLEE Associate Director,
Center for Business Acceleration and Incubation Studies (CBAIS), Director
Technology and Commercialization Assistance
(TCA) Program
Steve Wilson, Director

51. Technology and Commercialization Assistance
(TCA) Program
TCA fosters the proactive transfer of new technologies to existing businesses
Existing Companies have Existing Resources
Skillsets, Processes, Equipment,
Management, Financial support

52. Technology and Commercialization Assistance
TCA identifies the capabilities and initiatives of
existing companies and matches them with university
technologies resident in Michigan universities
 Financial review
 Interviews with the
management team
 Technical review
 Technology search
 Facilitate technical
discussions to select
technology matches

53. Technology and Commercialization Assistance
Identifies supporting resources the company will
need to successfully transfer new technologies into
commercial application and provides assistance to
engage and effectively utilize those resources
 Define project Scope of
Work (SOW)
 Make contractual
arrangements to execute
SOW
 TCA funds up to 50% of
project cost
 Monitor progress; identify
high leverage points; drive
positive outcomes

54. TCA Project Examples
• Expertise in highly compressible fluid dynamics at
the University of Michigan assisting a client with
the development of a new product
• Petoskey, Michigan company adopting a plastics
formula at Michigan State University to develop
their next generation product; utilizing
faculty, students, labs
• Marketing projects assisting an Upper Peninsula
firm with branding and positioning relative to new
technology they are commercializing out of
Michigan Tech; TCA continues to monitor progress
for high leverage points

55. Technology and Commercialization Assistance
(TCA) Program
Basic TCA Eligibility:
Michigan Operations
 Financially Stable
 Committed to Growth
 Strong Management Team
 Technical Capability and Capacity
 Desire to Adopt University Technologies

56. Technology and Commercialization Assistance
TCA also identifies, prescreens, and facilitates
collaboration with existing companies that offer
discounted or pro-bono services to university start-
ups, either for the prospect of a future customer or as
community service
 Interviews with the
management team
 Technical review of
talent and processes
available
 Facilitate technical
collaboration with
university start-ups

57. Technology and Commercialization Assistance Program
Currently
 Kicking-off new partnerships with CMU-RC and MTEC SZs
 Providing a state-wide reach
 Companies and Technologies

58. University of Michigan
Office of the Vice President for Research
Institute for Research on Labor, Employment, and the Economy (IRLEE)
Business Assistance Program
Technology and Commercialization Assistance (TCA) Program
Steve Wilson, Director
www.irlee.umich.edu
For More Information Contact:
Steve Wilson sbwilson@umich.edu

59. University Programs
Melda Uzbil, M.E.M.
University Relations Director
Michigan Economic Development Corporation
melda@michigan.org
Tina Bissell
MUCI/MIIE Business Manager
University of Michigan
tbissell@umich.edu

60. University Programs
• Technology Transfer Talent Network (T3N)
• Michigan Corporate Relations Network
(MCRN)
• Michigan Initiative for Innovation and
Entrepreneurship (MIIE)

61. Tech Transfer Talent Network (T3N)
• $2.43M over two years with a 1:1 match
• Administered by your tech transfer office

62. T3N – Three Focus Areas
• Talent programs:
– Mentor in Residence
– Tech Transfer Fellows
– Post-doc Fellowship
• Talent Database
• Talent Events

63. Michigan Corporate Relations Network
(www.michigancrn.org)

64. Michigan Corporate Relations Network
(www.michigancrn.org)
Small
Company
Internship
Small
Instant
Company
Innovation
Innovation
Info Transfer Expertise
Service Database

65. University Programs
Melda Uzbil
melda@michigan.org
http://www.michiganadvantage.org/Entreprene
urs-and-Innovators/
www.michigancrn.org

66. All 15 Michigan public universities
collaborating
to strengthen ties between business
and academia by funding joint
projects, entrepreneurship education,
and technology commercialization

67. Methodology
• 2 funding opportunities
– Technology Commercialization Fund
– Talent, Innovation & Entrepreneurship
Education Fund
• Competitive, peer-reviewed process
• Proposal review by university technology
transfer professionals and representatives from
the Venture Capital and industry communities
• Awards capped at $150K
• Average award size is $57K

68. $ for….
• Technology Commercialization Fund
–Provide gap funding to help launch
university spin-off companies
• Market research • Clinical /
translational studies
• Proof of concept
• Business plan
• Prototype preparation
development

69. $ for….
• Talent, Innovation &
Entrepreneurship Education Fund
– Promote an entrepreneurial risk-taking
culture
– Provide experiential learning opportunities
• Pilot project funding
• Specific, individual university-industry
partnering projects
• Internship programs
• Business plan competitions

70. Quick Facts
• 5 award cycles to date
• $5 million to 90 projects to date
• 7 start-ups are developing out of MIIE-funded
technologies
• RFPs scheduled for Contact Tina Bissell for details:
– October 2012 734.647.5730
tbissell@umich.edu
– April 2013
– October 2013

71. MI-SBTDC
Michigan Small Business and Technology
Development Center
Technology Commercialization Services
Tech Team
Emerging Technologies Fund
Business Accelerator Fund

72. The Michigan SBTDC TM
The Michigan SBTDC is funded through a cooperative agreement
with the U.S. Small Business Administration (SBA), the Michigan
Economic Development Corporation (MEDC) and matching funds
from Local Network partners in each region.
MI-SBTDC State Headquarters
Grand Valley State University
Seidman College of Business
616-331-7370
www.misbtdc.org

73. CORE SERVICES
• Business Counseling/Coaching
– no cost/confidential
• Business Education
– low or no cost
• Secondary Market Research
– low or no cost

74. SERVICE DELIVERY TEAMS
• Small Business Group
– Core services : deliver or build team for client needs
• Growth Group and Manufacturing Assistance Team
– Well established / 2nd stage business specialists
• Finance & Strategy Specialists (NEW)
– Financial Growth and Control/Loan Assistance
– Manufacturing finance and diversification specialists
• Technology Team
– Technology commercialization business specialists

75. Are you a tech company?
A business in which research and development
brings forth an innovative product or process.
The innovation typically involves intellectual
property that contributes to a strong
competitive advantage in the marketplace, and
serves as a foundation for a high rate of growth

76. Technology Team
Services Provided
• Access to capital
• Strategic planning and execution
• Access to resources

77. MI-SBTDC
Tech Consultants
Anna Bier, MS, MBA Physicist SBIR / STTR
Mary Sue Hoffman, J.D. Attorney Business assessments, due diligence
Jason Pliml, BA Entrepreneur Investor pitch, business plan development
John Balbach, MA Finance Financial Modeling, alternative financing
Tom Kelly, MBA Management Marketing and sales, management
Kayo Ramirez, J.D. Attorney Venture Capital, business plan development
Dave Grossman, ME Engineer Technology roadmapping
Sandra Cochrane, MBA Life Sciences Business plan development, networking

78. Impact!
2011 MI-SBTDC Tech Team Survey
Results
• $69,302,460 Capital Raised
• 245 New Jobs Created
• 59 Commercialized Products
• Over 95% satisfaction rate

79. For MI-SBTDC Assistance
Find your nearest MI-SBTDC office at
www.misbtdc.org

80. Emerging Technologies Fund
Commercialization Matching Funds for
SBIR/STTR recipients

81. Michigan Emerging
Technology Fund
•$5.6 Million allocated to the Fund Since 2008
•State Match to Federal SBIR/STTR Awards
•Commercialization Purposes ONLY
•21st Century Jobs Fund Program

82. Small Business Innovative Research (SBIR)
Small Business Technology Transfer (STTR)
•More than $2 billion federal research dollars
awarded to small business
•Administered by SBA
•Delivered through 11 federal agencies
•SBIR/STTR assistance available to Michigan
Companies through MI-SBTDC and BBC Etc.
www.sbir.gov

83. SBIR/STTR
Three Phase Program
•Phase I - feasibility study
•$100,000 range
•6 months (12 month STTR)
•Phase II – full R&D
•$750,000 range
•2 years
•Phase III – commercialization
•Use of non-SBIR/STTR funds

84. ETF Awards
•Through the MI ETF, the MI-SBTDC will match
•Phase I – 25% of the federal award up to
$25,000
•Phase II – 25% of the federal award up to
$125,000
•ETF matching awards are grants

85. Eligibility Requirements
• SBIR/STTR recipient must raise third party
commercialization funding
• Companies must submit ETF application prior
to their SBIR/STTR deadline
• Full eligibility requirements and FAQ at
www.mietf.org

86. Michigan Emerging Technology
Fund
Program Information and Online
Applications
www.mietf.org

87. Impact!
•Over $37 Million in SBIR/STTR leverage
•Over $83 Million in Third Party Leverage
•Over $4.6 Million in ETF awards disbursed
•95 ETF Awards
•Over 750 Applications
•271 FTE Jobs Created & Retained

88. Business Accelerator Fund
• Pilot Program
• Business Accelerator services available to
companies regardless of location
• 2 year $3 million “fund of funds” for
Michigan’s business accelerator network
• Maximum of $50,000 BAF funds per company

89. Business Accelerator Engagements
• Business consulting
• Legal assistance
• Technology consulting
• Commercialization assistance

90. Eligibility
• Companies commercializing advanced
technology
• No more than $1 million in private sector
investment
• No more than $2.5 million in annual sales
• Must be sponsored by a Participating
Accelerator

91. Find your Participating Accelerator
www.misbtdc.org/BAF

92. MICHIGAN PRE-SEED CAPITAL
FUND
A collaborative effort of the Michigan
SmartZones

93. Michigan Pre-Seed Capital Fund
• The Michigan Pre-Seed Capital Fund supports emerging high-
tech companies by providing access to early-stage capital:
investment or loans.
Pre-Seed – The stage of a start-up company
1. Less than $1 million of trailing 12 month sales revenue
2. Less than $1 million of outside private equity raised

94. Funding Amount
The Pre-Seed Fund
will invest
$50,000 to $250,000
per company
alongside an investment partner
who will provide a minimum 1:1 match.

95. Criteria/Eligibility
Companies must meet the following criteria:
– Michigan headquarters and majority of employees in state
– company must have the rights (ownership or license) to innovative technology
– pass the due diligence review of a SmartZone
– have a match in the form of a term sheet or grant approval
The following do not qualify for matching funds:
• Other State monies
• Sales revenues
• Anything In-kind including salary deferrals
• Other trade partner exchanges or trades

96. Other Investment Matters
Background checks will be made on founder(s)/CEO paid by fund
administrator.
A company can only be approved for funding once.
A company may reapply once.
A convertible note will be the default investment instrument for
companies without a term sheet.

97. Application for Investment
The submission package must include:
• Business plan (maximum 30 pages)
– Company overview
– Market information
– Operations
– Product description
– Management
– Use of funds – milestones
– Financial history and projections
• 5 year pro forma
– Cash flow, P&L and Balance sheet forecasts
– List of assumptions
– Financial statements
• Investor presentation
• Matching source Term Sheet, proposal, grant approval, subscription agreement
• Registration Certificate with the State of Michigan

98. Funding Amount
New Micro Loan Fund
Provides loans between $10,000 and $50,000
per company.
No match requirement.

99. Application
The submission package must include:
• Business plan (maximum 10 pages counting financial pages)
– Company overview
– Market information
– Operations
– Product description
– Summary of management talent
– Use of funds
• Pro Forma 3 – 5 years
• Entrepreneur Bio or CV (maximum 2 pages each)
• Letter of support from SmartZone
• Registration Certificate with the State of Michigan

100. Loan Terms
Subordinated Note: Subordinate to all other debt holders, current and
future
Interest rate is 12%
Term is 2 years
Other provisions:
– No personal guarantee or collateral
– No payment – balloon
– No warrants or penalty for early payoff
Reporting for five years
– Quarterly financial statements
– Number of employees and new hires
– Sales
– New IP
– Grants and investments received
http://www.annarborusa.org/business-accelerator/funding-
incentives/ann-arborypsilanti-ldfa-microloan-program

101. Michigan Angel Fund
Investor Presentation

102. Disciplined Investment Decision Making
Methodology – 4 month process
• Proactive deal origination
• Methodical screening & diligence process
• Not venture backable
• ~8 investments in two years
102

103. Focused Investment Strategy
Stages*: Pre- Seed, Seed, Early – Stage
(both pre and post revenue)
Industries*: Clean Tech
Information Technology
Advanced Manufacturing
Health Care
Geography: Michigan
103
* Limited opportunistic investing outside targeted stages & industries

104. Fund Investment Model - Company Criteria
• Management DNA
• Disruptive technology
• Large market potential
• Defensible
• Limited funding requirements
104

105. Growing and Sustaining a Vibrant
Venture Capital Community in
Michigan
www.michiganvca.org

106. Mission and Vision
Mission: To Grow and Sustain a Vibrant Venture Capital Community in Michigan
Vision: In the year 2016, Michigan will have:
 Abundant and accessible capital
 Abundant and accessible entrepreneurial management talent
 Many successful companies that have been financed by venture capital funds and
angel groups/funds residing in Michigan and by venture capital funds which reside
elsewhere
 Many successful Michigan-based venture capital funds that invest both in
Michigan and nationally , as well as angel groups/funds that invest in Michigan
 Both venture and angel capital communities playing a meaningful role in
Michigan’s revitalization
 Become a nationally known top venture capital location
 MVCA representing the voice of venture capital, angel capital &entrepreneurs

107. MVCA Activities
• Industry Research
• Legislative Outreach
– Educating legislators on the value Venture Capital
creates in Michigan
• Limited Partner Outreach
– Educating LP’s on the value they can get from investing in Michigan
based VC’s
• Events
– Networking and Education
• Marketing, PR & Communication
• Talent Programs

108. MVCA Programs: EIR/CEO Placement
• For Venture Funds within the state of Michigan.
Entrepreneur in Residence:
• Improve the number and quality of entrepreneurial C-level
talent in Michigan-based portfolio companies
• Successful entrepreneur works with VC firm for one year to
identify an investment and placement opportunity
CEO Placement Program:
• Increases the number of venture-backed executives and the
number of successful venture-backed companies in Michigan
• Provides reimbursement for executive search costs and/or
portion of 1st year salary

109. MVCA Programs: Michigan Venture Fellows
Program
• Create the next generation of venture
capitalists with track records in Michigan
• Expanding job opportunities at Michigan
venture capital firms
• 18-24 month fellowship for graduate level
candidates with 3-5 years industry experience

110. MVCA Programs: Angel Network Growth
Program
• Support angel groups within the state of Michigan.
• Rewards investment activity
• Provides the angel group with additional resources to
encourage and support further investment and
growth in membership.
• Supporting angel groups because investing through
angel groups has been shown to provide for greater
returns and a higher degree of success due to
improved decision making processes.

111. MEDC Company Investment
Programs
Pure Michigan Venture Match Fund
MEDC Follow on Fund
Coming Attractions

112. MEDC Follow on Fund
• What is it?
• How much is available? ~$1 million
• Who is eligible?
• Application Process
• How do I find out more:
–http://www.michiganadvantage.org/21
st-Century-Jobs-Fund-Administration/

113. Pure Michigan Venture Match Fund
• What is it?
• How much is available? $5 million
• Who is eligible?
• Application process
• How do I find out more:
–http://www.michiganadvantage.org/P
ure-Michigan-Venture-Match-Fund/

114. What’s Next?
• Pure Michigan Venture Match Fund
• Pure Michigan Fund of Funds
• Crowdsource Funding
Contact:
Michael Psarouthakis
psarouthakism@michigan.org

115. www.michiganadvantage.org
Entrepreneurs & Innovators