Non-profit organisation Business Leaders for Michigan has tapped corporates for $60m to invest in its second Renaissance Venture Capital Fund, a fund of funds. Detroit, Michigan’s largest city, is pictured.
The second fund takes Renaissance’s capital to more than $100m. The fund was backed by corporates including Amway, DTE Energy, Blue Cross Blue Shield of Michigan, Meijer, and La-Z-Boy, as well as Wayne State University and three Michigan foundations: the Herbert H. and Grace A. Dow Foundation, the W.K. Kellogg Foundation and the McGregor Fund.
Chris Rizik, chief executive of Renaissance, said: "Venture capital has been one of the principal drivers of economic growth around the nation. Venture capital-backed companies, as a whole, grow 50% faster than other companies and hire employees at eight times the national average. Michigan has the research and talent base to create these fast-growing new companies and the associated high paying jobs. RVCF marries these strengths with new capital and a network of collaboration between young companies, venture capital funds and many of Michigan’s largest companies, which will lead to more innovative new companies and employment in the state."
Doug Rothwell, president & chief executive of Business Leaders for Michigan, said: "This Fund demonstrates the commitment of Michigan’s largest employers to growing jobs in our state by providing capital to new, innovative companies. It is making a real difference in making Michigan more attractive to entrepreneurs and growing innovation."
Mark Heesen, president of the National Venture Capital Association, said: "Renaissance has been extremely positive for the state of Michigan which, like many states, has the right components for a thriving entrepreneurial ecosystem but does not yet have the level of indigenous capital to grow to its full potential. Renaissance has quickly and effectively demonstrated an approach which accelerates the process. Other states would be wise to carefully review the Michigan model when looking to attract venture investors to their region."