Michigan Rise Pre-Seed Fund III Celebrates 50th Investment
Investment marks milestone for Michigan's continued economic development
EAST LANSING, Mich., May 12, 2022 –– Michigan Rise Pre-Seed Fund III, a subsidiary of the Michigan State University Foundation (MSU Foundation), in partnership with the Michigan Economic Development Corporation (MEDC), today announced its 50th startup investment since its inception in August 2020. To date, Michigan Rise Pre-Seed Fund III has invested $5.8M across 50 investments in 38 startups across the Mitten state, including 12 follow on investments in 11 portfolio companies.
“It’s been incredibly satisfying for our team to work with Michigan’s innovative startup community and to complete our 50th investment in under two years,” said Jeff Wesley, executive director of Michigan Rise Pre-Seed Fund III. “This is not only a great accomplishment for Michigan Rise and the MSU Foundation, but more importantly it’s a demonstration of the continued growth of our state’s entrepreneurial ecosystem. I couldn’t be more excited about what’s to come and thankful to our dedicated team for the hard work and support they put in daily to achieve this milestone in just a short time for the fund.”
Michigan Rise Pre-Seed Fund III invests in Michigan technology startups to help commercialize innovative technologies, and supports entrepreneurs across Michigan through capital support, coaching, assistance with funding strategies and more. With an average investment of around $120,000 to date and a cap of $250,000 per company, Michigan Rise touches a variety of industries core to Michigan’s economy, such as life sciences, agriculture tech, energy, mobility and more.
Michigan Rise’s first investment was in pharma-focused startup Genomenon, an analytic and data visualization tool that mines millions of medical publications to deliver a list of disease-gene-variant relationships curated from primary medical literature. The investment round served as a springboard for Genomenon’s core Mastermind technology and Michigan Rise’s entrance into the healthcare tech industry.
Rounding out the 50th investment was in HR-focused company, Wedge, which helps hiring teams better connect with the right talent and fast-track them through video resumes. Founded in 2015, Wedge gives employers the ability to attract, pitch, and fast-track the most passionate applicants. They empower hiring teams to achieve better job posting results, meet the right applicants faster and fight bias’, all while hiring simpler, faster and more cost-effective.
“At the Michigan Economic Development Corporation, we prioritize economic growth and development by partnering with organizations like the MSU Foundation and Michigan Rise,” said Fred Molnar, senior vice president of Entrepreneurship and Innovation at the MEDC. “Michigan Rise’s work with emerging technology companies is bolstering the state’s economic reputation and increasing entrepreneurial opportunities across all industries. We congratulate Michigan Rise on this remarkable milestone as they continue to foster growth in vibrant communities across the state.”
In 2021, the State of Michigan saw a 682% rise in early-stage funding in the last two quarters. Not only is that number expected to grow in 2022, but the communities where startups convene are thriving. Wherever startups and established businesses grow, Michigan’s economic development continues to expand and swing upwards.
“Michigan has always been known as the center of the automotive industry, so it’s exciting to see funders like Michigan Rise and the Michigan Economic Development Corporation willing to invest in technology companies like AaDya that complement that work,” said Raffaele Mautone, CEO of AaDya, a cybersecurity company for small to medium sized enterprises . “I am incredibly grateful to be in Michigan and start this business knowing I can shine a spotlight on Detroit, diversity and the technology sector alongside some great partners across the state.”
RIVET Work, a software company for skilled trade contractors also continues to be a valued portfolio company with Michigan Rise. Both co-founders of the company, RIVET CEO, Ryan Meitl and CMO, Alison Accavitti share:
“The Michigan Rise investment allowed us to allocate our time and resources to RIVET full-time,” said Meitl. “The investment and support of Michigan Rise helped us scale from a small startup just two years ago to a company employing 14 people. By the end of 2022, we expect to have over 20 people on staff.”
“As a Michigan State University graduate, working with the MSU Foundation and partnering with Michigan Rise brings a sense of familiarity and comfort, knowing that I’m part of such a strong community,” said Accavitti. “Being a fellow Spartan is only an added bonus and to have this continuous connection with the university that shaped me is very special.”
86 Repairs, a restaurant tech repair and maintenance company, received its first investment from Michigan Rise Pre-Seed Fund III in 2020 at the height of the COVID pandemic as part of its bridge round.
“The investment community in Michigan is very tight-knit, which allows companies like Michigan Rise to drive success across the state,” said Daniel Estrada, co-founder of 86 Repairs. “Although funding is a major priority, Michigan Rise goes beyond investment and has been a champion for us every step of the way.”
Prem Bodagala, Director at Michigan Rise Pre-Seed Fund III, said, “We launched our fund at the peak of the COVID pandemic when there was a sudden crunch in capital, even for companies that had hitherto been trending well. It has been a privilege investing in and working with brilliant Michigan entrepreneurs who have not only withstood the challenges presented by COVID but have thrived in that time. It has also been gratifying to see founders who are alumni of Michigan home runs, such as Duo and StockX, launch their own startups and we are excited to support them in their new innings.”
In 2022, Michigan Rise Pre-Seed Fund III continues to contribute to Michigan’s prosperous startup ecosystem. Having reached its 50th investment in under two years, the organization looks forward to what’s next, actively seeking new organizational partnerships and investment opportunities.
“When we launched in August of 2020, we put in place an ambitious business plan to have made 32 investments in the first two years. Having made 50 investments prior to our second anniversary speaks to the quality pipeline of early-stage venture deals from within the state of Michigan ecosystem,” said Wesley.
About Michigan Rise Pre-Seed Fund III
Michigan Rise Pre-Seed Fund III invests in Michigan tech startups to help commercialize innovative technologies. We are proud to partner with Michigan’s best and brightest tech entrepreneurs and further economic development in the Mitten State. The Pre-Seed Fund III is administered by the Michigan State University Foundation through Michigan Rise, which is a wholly-owned subsidiary of the Foundation. Michigan Rise supports entrepreneurs and technology startups across Michigan through capital support, coaching, assistance with grant funding and more. Michigan Rise Pre-Seed Fund III is made possible with support from the Michigan Economic Development Corporation and Michigan State University Foundation. To learn more about Michigan Rise go to www.michiganrise.com
About Michigan State University Foundation
Established in 1973 as an independent non-profit, the Michigan State University Foundation is committed to the commercialization of cutting-edge technologies invented by MSU faculty, staff, and students. The MSU Foundation’s overarching goal is to support research, innovation, and entrepreneurship at the University. Additionally, the MSU Foundation operates Spartan Innovations, Red Cedar Ventures, Michigan Rise and incubator facilities to help drive economic development. More information on the organization’s notable achievements, services, leadership, and history are available at www.msufoundation.org.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.