The Michigan State University Foundation has been approved to be the administrator of Pre-Seed Fund III granted by the Michigan Economic Development Corporation (MEDC) on April 14, 2020.
The $3 million Pre-Seed Fund III will be deployed across the state of Michigan to better support entrepreneurs and technology startups and provide capital support, coaching, assistance with grant funding and more.
Eligibility:
- Michigan-based early stage startup company
- Company should be working in technology sectors as defined in Section 125.2088a of the MSF Act including:
- Advanced Automotive
- Manufacturing
- Materials
- Information/IT/Software
- Agricultural Processing Technology
- Alternative Energy
- Homeland Security and Defense Technology
- Life Sciences and other innovative technologies
The team will meet with qualified companies that have been filtered through the collaboration partner network to ascertain need and fit with the mission of the 2020 PSF and will be evaluated using the evaluation criteria such as:
- Addressable market size
- Disruptive or iterative technology
- Competitive landscape
- Relevant experience or advisor network with domain expertise for first-time founders
- Dedicated leadership team with a full-time commitment to the company
- Projected use and timing of funds
- Ability for accomplished milestones to raise follow-on funding
Investment Size
- Deal size will be in the range of $100K to $250K
Deal Structuring
- Convertible Debt
- Equity
- In some cases, SAFE Agreements
Collaboration Partners:
- First Capital Fund
- SBDC
- BBCetc
- Incubators and Accelerators
- Michigan Smartzones and Economic Development Organizations
- Michigan Universities
- Other MEDC Funds – Invest Michigan, BRCC
- Angel Groups
- Venture Funds
- Legal Firms
- Accounting Firms
- Accelerate Michigan Innovation Competiton (AMIC)
Source: Michigan State University Foundation