July 2, 2013 @ 7:17 am
The Michigan Economic Development Corporation (MEDC) invites you to the Public Hearing on Amending Pure Michigan Venture Match Fund (PMVMF) Guidelines to be held at the MEDC (300 N. Washington Sq, Lansing, 48913) from 2-4 p.m. on July 17th at the Lake Superior room.
The MEDC is looking for comments and suggestions on how to improve the Pure Michigan Venture Match Fund Program and would immensely appreciate your feedback. If you are not able to make it in person, please send your thoughts via email: PMVMF@michigan.org.
Below is a summary of the proposed changes. The notice is live on the website as well.
The PMVMF Program has been in effect for over a year, during which time the MEDC Staff has been able to test some of the assumptions in the guidelines. The investment community and companies have also provided significant feedback, all of which are incorporated in the topics to be discussed in at the public hearing.
· JEC: Under the MCL 125.2088k(3)(a), which was effective May 30, 2012, all evaluations must be performed by a JEC. Staff recommends receiving public comments for changing the current evaluation requirement from independent third party peer review to JEC.
· Eligible round size: Currently companies are eligible to apply for PMVMF only if they have raised $3 million or less in investments prior to the PMVMF application and are raising no more than $3 million in the round in which the PMVMF is asked to participate. Staff proposes increasing the current prior investment ceiling and current round maximum investment amount eligibility.
· Catch-Up Awards: Staff proposes allowing a catch-up award for those companies that did not receive the maximum award amount under the PMVMF. If a company is awarded with less than $500,000, the company will have the opportunity to apply for the remaining balance by providing a supplemental term sheet to the initial term sheet. The “Catch-Up” will match the same terms as the investors as provided in the supplemental term sheet, including equity and convertible bridge loans. The Catch-Up Awards will not be reviewed by the JEC and may be approved by the MSF Fund Manager.
· Follow-on-Fund Awards: Companies will have the opportunity to submit multiple applications for a Follow-On investment out of the PMVMF so as long as the combined investment amount does not exceed $500,000. The Follow-on investment will follow the same participation guidelines as the initial investment and will match the same terms as the investors, including equity and convertible bridge loans. Follow-on-Fund Awards will follow the standard process as initial awards approved under the PMVMF Guidelines.