Saturday, September 23, 2006

Mo' money, mo' jobs - thanks to Granholm

These venture capital, investment thingees are out of my realm of understanding- all I know is it takes money to make money and that makes jobs right here in our state. Yea for the Governor, yea for us.

Much better than the Republican plan, where they just steal the money from an unsuspecting public by fashioning huge tax breaks for themselves and then turn around and create jobs overseas instead.

You don't need a weatherman to know which way the wind blows.

The state announced a new $109 million fund Thursday designed to energize the investment community and the companies they buy into.

The 21st Century Investment Fund will invest over the next three years in venture capital, mezzanine and private equity funds that will then choose companies to invest in.

The fund is part of the $2 billion, 10-year initiative Gov. Jennifer Granholm launched to diversify Michigan's economy and create new jobs.

The fund is separate from the recently announced $200 million Venture Michigan Fund, although the two share some similarities. The Venture Michigan Fund specifically targets venture capital firms that will invest only in early-stage companies focusing on homeland security, advanced manufacturing, life sciences and alternative energy. VMF is a loan that must be paid back over time.

The 21st Century Investment Fund comes from the state's tobacco settlement and targets a much broader group of investors. While venture capital focuses on start-ups, mezzanine and private equity funds invest in later-stage companies that are growing or mature.

In addition, venture capital tends to gravitate toward technology start-ups, said Cindy Douglas, director of technology acceleration for the Michigan Economic Development Corp., which is administering both funds. Private equity and mezzanine funds often invest in more traditional industries such as automotive or furniture, she said.

The combination of the two funds means a broad range of companies at all stages will have a chance at some investment, Douglas said.

Let the feeding frenzy of the suits begin.