Report_ michigan at crossroads in diversifying economy – crain’s detroit business

• Develop an executive connect program patterned after one launched in 1985 in San Diego that connects would-be entrepreneurs with resources such as technology, coaching capital, management, partners and support services.

• Once again provide additional funding for an executive-attraction program. Electricity word search puzzle Previously the state funded such a program, managed by the Michigan Venture Capital Association, which provided help with recruiting experienced talent and first-year salary expenses, and should fund another.

• Provide more support for the growing network of angel investors by offering, as do 20 other states, tax credits to angel investors who invest in technology companies.

• Create a proof-of-concept fund to help determine the commercial potential of a discovery or research and to support prototype development, testing and marketing research.

• Develop a revised reporting system that allows for economic analysis and assessment of various Michigan Economic Development Corp. Gasbuddy trip programs on an ongoing basis.

The state’s 21st Century Jobs Trust Fund has had a strong return on investment since launching in 2005, but Michigan is at a crossroads in its efforts to diversify its economy, according to a study commissioned by the Michigan Economic Development Corp.

The fund’s Entrepreneurship and Innovation Program has created 26,839 jobs in the decade since legislation in Lansing allowed proceeds from the state’s portion of tobacco settlement revenue to fund various diversification programs, according to the 73-page report by Columbus, Ohio-based TEConomy Partners LLC, a consulting firm that focuses on analysis and strategy for innovation-based economic development.

The report said that since the trust fund was created, $261.6 million has been spent by the state in innovation and entrepreneurship efforts across Michigan, helping nearly 1,400 companies and new entrepreneurial startups, either directly or through service intermediaries.

The result by 2014 was the generation of total employee income at those firms of more than $1.6 billion; about $165.5 million in state and local tax revenue; and, most important, total economic output in the state of $5.5 billion, providing a multiplier effect of 21 for every dollar the trust fund spent.

• The state’s universities underperform those in the U.S. O goshi technique as a whole in generating patents and creating jobs through spinning off for-profit companies.

• Despite the rapid growth of the local venture capital industry, it is well under the U.S. Mp electricity bill payment average for the amount of VC money invested here as a ratio of gross state product.

“There are pockets of bad news in the report. Gas bike alley We still have to keep the pedal to the gas. Electricity related words But I’m optimistic. Electricity water hose analogy Overall, it’s a great report. Electricity formulas grade 9 It showed that taxpayers spent their money wisely,” Fredrick Molnar, the MEDC’s vice president of entrepreneurship and innovation, told Crain’s.

“Michigan’s economy has made impressive gains as companies grow, creating more and better jobs,” MEDC CEO Steve Arwood said in a news release that accompanied the report.

“It’s important for us to have outside groups study what we’ve done to create an environment for economic success and measure the effectiveness of programs so we know how we can continue. Electricity distribution losses We want our state to be thriving not just in the short term, but for decades to come.”

Of the nearly 1,400 companies that got support, 1,073 were operating in 2014, with 862 of them having received entrepreneurial or incubation services, 435 getting pre-seed or early-stage funding, and 111 getting funding through venture capital firms.

There were 198 of those companies in advanced manufacturing, employing 3,896; 222 in life sciences, employing 2,412; 311 in information technology, employing 2,350; 204 in engineering and R&D, employing 1,572; and 137 in business, consumer and retail services, employing 773.

The report said companies receiving support from the trust fund created more than 11,000 direct jobs and nearly 16,000 indirect jobs, either through impact on supplier firms or the effects of worker spending throughout the Michigan economy. Emoji gas station Third fund? Not likely

For progress in diversification and entrepreneurship to continue, the report said, state universities must become better at commercializing research and technology; there needs to be more collaboration between industry and universities; the state should bolster angel investing in the state through tax credits offered in 20 other states; and, perhaps most important, it needs to create a third fund of funds to invest in venture capital firms willing to invest in early-stage state companies.

The state has created two funds of funds, the $95 million Venture Michigan Fund I in 2006 and the $120 million Venture Michigan Fund II in 2011.

“The (state) has already helped create two funds of funds in Michigan, both of which are widely credited with helping to alter the national perception of Michigan being a ‘flyover’ state in terms of deal flow,” read the report. Us electricity supply voltage “While some have questioned the terms of the original funds … Electricity dance moms song it would be extremely shortsighted to simply do away with such catalytic and impactful investment activity altogether.”

That recommendation is likely dead on arrival. Electricity distribution costs It wasn’t just “some” who later questioned the terms, it was many, including a sizable majority of state legislators last year, when they briefly tried to end funding for the two programs.

Molnar told Crain’s that despite the recommendation for a third fund, the MEDC won’t be recommending one. Gas blower will not start The Ann Arbor-based Michigan Venture Capital Association has been lobbying legislators about the need for a third fund, and Molnar said he hopes the organization is successful but described its effort as “uphill at best.”

The state didn’t finance the funds with tobacco settlement money, instead borrowing money with tax vouchers as collateral. Electricity and circuits class 6 pdf The state put up $200 million in vouchers for the $95 million loan from Deutsche Bank in 2006 that created VMF I and $250 million in 2010 for the $120 million loan from an affiliate of Credit Suisse that created VMF II.

The plan was that as VC firms sold off or took public the state companies they had invested in, the loans would be paid off. Electricity usage calculator spreadsheet The problem that riled legislators last year was with the loan payments due on the first fund. Gas yourself No one in 2006 envisioned the Great Recession, which not only slowed the pace at which venture capital firms invested in companies, but greatly slowed the pace at which their portfolio companies grew and delayed significantly the timeline for selling them or taking them public.

By the time it came last year for the state to start paying off the first loan, it hadn’t gotten any returns. E85 gas stations in san antonio tx Early last year, the House Fiscal Agency said it might cost the state $140 million from 2015-17 to cover shortfalls in loan and interest payments to Deutsche Bank.

“This was all done with good intentions,” Rep. Gas oil ratio Al Pscholka, R-Stevensville, told Crain’s. Gas questions “But venture capital is risky, and I don’t think we should be risky with taxpayers’ money.”

Even Tom Kinnear, chairman of the Venture Michigan Fund since it was launched in 2006 and the founding executive director of the Zell Lurie Institute for Entrepreneurial Studies at the Ross School of Business at the University of Michigan, admits that, in retrospect, using tax vouchers as collateral “is a very inefficient way to invest in venture capital.”

Two House bills were introduced in February 2015 to halt investment from both funds, though legislators changed their minds after finding out that had they proceeded the state could have been on the hook for $450 million.

Though contracts with VC firms had committed all the money from both funds, much of it had yet to be disbursed. Electricity bill nye worksheet It is only paid out as VC firms make what are called capital calls to cover the costs of new investments.

Had the two funds stopped making previously agreed payments to VC firms, the firms would no longer have been required to make distributions back to the funds and the state would have been on the hook for everything it had borrowed.

Kinnear told Crain’s at the time the legislators were threatening to cut off payments that eventually the state treasury would show a profit from the two funds. Gas density of air He said that tax vouchers would be needed at first, “but the problem is temporal, not systemic. Gas laws Ultimately, the treasury will be paid back.”

The two funds did as they were intended, said the report. Electricity kwh More in-state VC firms were created, and many of the out-of-state firms that got money not only invested in companies in Michigan but opened offices here.

In 2006, there were 15 VC firms with offices in Michigan; in 2014, there were 37. Wd gaster cosplay tutorial In that same time, the number of investment professionals in Michigan went from 40 to 115; the amount of money under management by VCs went from $900 million to $4.8 billion; and various state programs made $204.7 million in risk capital investments, which were leveraged with an additional $621.3 million in follow-on private investments, a ratio of 3 to 1.

“While there is broad consensus that the risk capital climate has greatly improved, there is also a widely held belief that the investment culture is at great risk of disappearing without further additional support,” read the report. Electricity wiki “It is a widely held belief that the national venture capital funds are monitoring Michigan’s risk capital landscape, and if investors think the state is not committed to supporting entrepreneurial development, then they will disengage and invest their funds’ resources in regions that are committed to building an entrepreneurial culture.”

If continued investment by national VC firms is contingent on Michigan creating a third fund of funds, then Michigan is, indeed, at a crossroads. Gas cap code ‘Pockets of bad news’

The report named 12 states as benchmark states to compare Michigan, some regional competitors, some with similar economies and size and others that have made long-term investments in entrepreneurship. Gas utility The states were Illinois, Indiana, Ohio, Pennsylvania, Tennessee, Minnesota, Wisconsin, Arizona, Connecticut, Georgia, Maryland and Texas.

Michigan did well in some areas — industrial R&D spending, for example, was $311,161 for every $10 million of gross state product in 2012, compared to the national average of $143,615, ranking it first among benchmarks; and in 2013, university R&D was $49,335 for every $10 million of GSP, compared to the national average of $37,866, ranking it third among benchmarks.

For example, while Michigan has sharply improved the amount of venture capital over the last decade, when it comes to venture capital invested per $10 million of gross state product, it lags at $20,787. Electricity bill cost per month The national average is $77,088, a figure distorted by huge outlays in California, but Michigan is just ninth among its benchmarks.

• In 2012, the percentage of all companies in Michigan that were startups was 6.7, which ranked it eighth among benchmarks. Gaston y astrid lima That was actually down by 1.8 percentage points from 2004, possibly a result of young companies that failed during the recession.

• There was a disconnect between industry and universities when it came to R&D collaboration. Gas nozzle keeps stopping In 2013, there was $1,610 per $10 million of GSP spent on industry-sponsored R&D at universities in Michigan, compared to the national average of $2,049, good for a benchmark ranking of ninth.

• Despite the presence of the University of Michigan and its large research budget and large technology transfer office, state universities overall lag at commercialization. Gas vs electric oven cost From 2011-13, state universities averaged a total of 16 spun-off startup companies, eighth among benchmarks; that was actually down from an average of 18 from 2004-06, the decline ranking Michigan 13th among benchmarks; from 2011-13, state universities issued .81 licenses for every $10 million spent on research, compared to .99 nationally for a benchmark ranking of seventh; in that same period, universities averaged $92,510 in licensing income per $10 million in research spending, compared to a national average of $345,570 and a benchmark ranking of ninth.