Michigan is currently the U.S.'s most rapidly growing state for venture capital, due in part to the involvement of Renaissance Venture Capital Fund. Since the Fund was founded in 2008, young Michigan firms have seen a 69 percent increase in venture capital investment, dwarfing the 3 percent national average. A representative with the RVCF recently announced that it has helped bring $300 million to numerous companies across the state, securing about $17 in venture capital for every $1 it has invested, spawning hundreds of new jobs in the process.
Though the RVCF invests in venture capital funds from around the country, it typically redirects those funds to young Michigan businesses. Its leaders say this strategy effectively boost employment, profits and technological innovation across the state.
The RVCF began with an initial investment of $16.7 million by Business Leaders for Michigan, a group devoted to expanding and diversifying the state's business and entrepreneurial interests. That initial investment has attracted hundreds of millions in capital since the RVCF's formation, helping it become one of the United State's fastest rising investment funds. Experts predict that the RVCF will eventually create over 25,000 jobs and bring more than $1 billion in investment capital to Michigan. It is already the biggest private venture capital fund of its kind in the nation, boasting partnerships with such corporate investors as La-Z-Boy, Meijer, Blue Cross Blue Shield of Michigan and Ford.
The Fund's CEO recently attributed the RVCF's success to its practice of connecting established firms to younger companies, creating financial perks on both sides and promoting innovation across the state. Its chairman seconded this claim, explaining that the RVCF's success in boosting the statewide economy and helping Michigan companies find financial success has transformed the Fund into "a national model for investing."
While investment capital is crucial for Michigan residents planning to start a successful company, the legal side of business formation can be just as important. This makes it critical for any Michigan-based entrepreneurs to consult with experienced attorneys specializing in commercial and business law.
Source: CBS Detroit, "Renaissance VC Fund Invests, Michigan Businesses Grow" Matt Roush, Jun. 18, 2013
