David Washburn:
In this episode, I’m joined by Jeff Wesley, our Executive Director of Ventures at the MSU Research Foundation. Jeff walks us through our Q4 investing activity, updates us on our PO Financing Program, highlights some portfolio company wins, and shares two major announcements: new venture funds in partnership with the State of Michigan and Henry Ford Health. It’s a packed conversation—you won’t want to miss it.
Welcome back to the MSU Research Foundation podcast. Today I’m joined by my colleague Jeff Wesley, our Executive Director of Ventures. Jeff oversees Spartan Innovations, Red Cedar Ventures, and the Michigan Rise funds.
We’re here to recap Q4 of fiscal year 2025. For those keeping score at home, our fiscal year runs July 1 to June 30, so today we’re covering April, May, and June. Before we start, a quick housekeeping note: this episode is not investment or legal advice, and some of the companies we mention are Foundation portfolio companies.
With that out of the way—Jeff, give us the high-level view. How did Q4 look?
Jeff Wesley:
It’s great to be back. Q4 was a strong finish to the year. We completed about 20 investments and financial transactions—right in line with our quarterly pace—and it really speaks to the consistency of what our team is building.
Beyond investments, there were a few things that stood out. We participated in the Mackinac Conference, launched our new jobs board, and recently saw a regional report naming our venture group as one of the most active investors in the Great Lakes region. That’s meaningful for our team and for Michigan.
All in all, a great quarter and a great year.
David Washburn:
Let’s start with the Pre-Seed Fund. You mentioned Iora—tell us about that investment.
Jeff Wesley:
Our Pre-Seed Fund supports companies coming through our accelerators and MSU-discovered technology. One company we’re especially excited about is Iora NatureTech.
They’re building a real-time system for carbon reporting and environmental monitoring using AI, machine learning, and satellite imagery. They’re currently a tenant here in East Lansing and founded by a group of scientists, conservation leaders, and technologists.
The collaboration with MSU has been great, and we’re excited to help them grow.
David Washburn:
Moving to our Opportunity Funds under Red Cedar Ventures—what stood out?
Jeff Wesley:
Two companies come to mind.
First, Arcadium. They use buoyant microbubbles for cell and molecular separation in research diagnostics and cell therapies. They just closed a $20 million round led by Michigan Capital Network and Arboretum. Brandon McNaughton and his team are hitting their stride, and it’s exciting to watch.
Second, Flightpath Biosciences. They develop therapies for chronic diseases tied to infections and microbiome imbalances. Founder Matt Tindall recently expanded their IP with technology from the University of Illinois. Their platform is growing—and growing fast.
David Washburn:
Arcadium raising a round like that—especially here in Michigan—is huge. Let’s talk Michigan Rise. Always active. What did this quarter look like?
Jeff Wesley:
Busy—as usual. A few standouts:
Adderix Biotherapeutics, developing therapies for drug-resistant infections. They started in Wisconsin but relocated to Michigan through ecosystem support—exactly the kind of thing we love to see.
Electric Plant Company, led by second-time founder Justin Mast, uses sensors to monitor plant health by reading electrical signals. We’re actively exploring MSU collaboration opportunities.
MagSorbBio, creating bioresorbable implants to reduce follow-up surgeries. They’re a tenant here in East Lansing and making great progress.
Syncurrent, based in Marquette, helps local governments access funding and improve services.
It’s a great mix of founders, technologies, and geographies across the state.
David Washburn:
That geographic reach really stands out—this isn’t just East Lansing. It’s truly statewide. Let’s shift to the PO Financing Program. That’s a unique model.
Jeff Wesley:
It is—and it works. One example is Grounded, an all-electric recreational vehicle manufacturer. We’ve done multiple PO financings with them, and they’ve now graduated into traditional bank financing. That’s exactly what we want to see.
This program fills a real gap. Many companies can’t get bank financing early on, and this gives them a chance to land their first customers and scale. We’ve even done repeat financings when founders needed a little more runway.
High risk, yes. But great founders—and great outcomes.
David Washburn:
When you look back on the year overall, how does it feel?
Jeff Wesley:
Another strong year. Our team keeps pushing to get better—better for founders, better for the state, better for the long haul.
We’re working closely with Michigan, with our university partners, and across the ecosystem. I’m proud of the team and grateful for the community around it.
David Washburn:
Let’s talk portfolio scale. About how many companies are we supporting today?
Jeff Wesley:
It changes constantly, but we’re around 240 active portfolio companies, with more than $1.5 billion in follow-on capital raised.
Across our real estate, accelerators, and venture teams, we’re working with over 300 companies every month. It’s a big funnel, and the goal is to help more companies reach the next stage.
David Washburn:
Any standout news from portfolio companies outside of new deals?
Jeff Wesley:
Absolutely. Atlas—a satellite ground-services software company from Traverse City—was acquired by York, a major defense contractor now working with the U.S. on missile defense systems.
Who would’ve thought a startup in Northern Michigan would end up playing a role in national defense?
David Washburn:
That’s pretty cool.
Jeff Wesley:
Really cool—and a big win for the state.
Another one: Takanock (Traverse City again) just secured $500 million in capital commitments from ArcLight and DigitalBridge to build infrastructure for power and digital systems. It’s a hot sector and a huge milestone.
David Washburn:
Let’s get to the first big announcement—our role in the Michigan Innovation Fund.
Jeff Wesley:
We’re honored to be one of five organizations selected by the state as part of this initiative.
This isn’t just about funding—it’s about building Michigan’s venture ecosystem long-term. The state isn’t thinking in one-year increments. They’re building something durable.
This fund gives us a chance to create evergreen capital that reinvests back into Michigan again and again.
David Washburn:
Who are your partners?
Jeff Wesley:
Invest Detroit, SPARK at the University of Michigan, and BRCC at Western Michigan University.
It took real collaboration. No sharp elbows—just shared focus on Michigan.
David Washburn:
And announcement number two—a healthcare fund?
Jeff Wesley:
Yes—and this one is special.
We’ve worked closely with Henry Ford Health over the last 19 months, and now we’re launching a $10 million healthcare innovation fund with MSU and Henry Ford Health as LPs, and the Foundation as GP.
Healthcare is complex. It’s hard for startups to access hospitals. But this partnership changes that. Our founders now have clinical access, pilots, and pathways to commercialization.
Lisa Prasad and the Henry Ford innovation team have been phenomenal partners. We’re already seeing real traction.
David Washburn:
Access to a world-class health system is an absolute game-changer.
Jeff Wesley:
Exactly. Strong partnerships increase the odds of success. Plain and simple.
David Washburn:
Jeff, this has been a whirlwind—in the best way. Anything you want to leave listeners with?
Jeff Wesley:
To founders out there: reach out. Get to know our team. We’re in East Lansing, Detroit, and Grand Rapids. If you’re building something in Michigan, we want to help.
David Washburn:
My guest today has been Jeff Wesley, Executive Director of Ventures at the MSU Research Foundation. Jeff, thanks for joining us—and I’m looking forward to checking back in this fall.
