$100 million for me?!…Sort of

According to Crain’s Detroit, Detroit Renaissance Inc. has announced a $100 million entrepreneurship fund up and available by the first quarter of 2008. According to the article it will be a fund for venture capitalist to support their investments. The funds will be focused at South East Michigan, but will be available throughout the entire state.  This fund is partly in place because many venture capitalist firms have complained that sources of funds such as universities have ignored Michigan VC’s and put money into many out of state firms. According to the article currently less than .5% of all U.S. VC money is spent in Michigan based business.  All and all I think this is an interesting development. Upon first reading the headline I thought a VC firm was offering 100 million to local businesses. Interestingly enough it is a fund of funds, as the article calls it. I was weary of that as I first dove into the explanation, but upon further evaluation I think it makes since for Detroit Renaissance to know its role and not to try to be a VC firm if it’s not, but to direct the money to VC firms that do know what they’re doing.  

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