MSU Research Foundation announces RCV Opportunity Fund II
Red Cedar Ventures (RCV), a direct venture investing subsidiary of the
Michigan State University Research Foundation, to receive an additional $5M to deploy
to early-stage startups within Michigan State University Innovation Ecosystem
EAST LANSING, Mich., November 18, 2022 –– The Michigan State University Research Foundation announces the establishment of RCV Opportunity Fund II, a $5M follow-on investment fund that enables the organization to continue to build upon its success.
Originally formed in 2015, (RCV) is a wholly owned subsidiary of the MSU Research Foundation and provides gap and pre-seed funding for startups spinning out of Michigan State University (MSU) innovation ecosystem. To date, RCV has deployed over $11M in 100 startup companies through its two funds, RCV Pre-Seed Fund and RCV Opportunity Fund I.
“We have worked hard to put together an ecosystem for entrepreneurs that embraces all of the creative talents across the University,” said MSU Research Foundation Executive Director David Washburn. “The continuation of this successful program ensures a critical capital gap for our own startup companies remains strong and we can help innovative ideas created by and in collaboration with Spartans have the chance to reach their intended markets.”
The funds are overseen by the RCV Board of Directors which is composed of members of the Michigan State University Research Foundation Board of Directors. Jeff Wesley continues as the lead executive at the MSU Research Foundation overseeing the Red Cedar Ventures family of funds.
“We are grateful for the Foundation’s continued confidence in our ability to bring new startups to market,” said Jeff Wesley, Executive Director of RCV. “Our team has expanded and made tremendous strides over the past several years and the establishment of Opportunity Fund II positions us to continue to momentum of supporting the MSU innovation ecosystem.”
RCV Funds have deployed capital to early-stage companies that are deemed high-tech and high-growth and in emerging technology sectors such as AgTech, AI and Machine Learning, CleanTech, Digital Health and Health Tech, Life Sciences, Mobility, and Quantum Computing to name a few.
Many of the technologies are sourced through Michigan State’s technology transfer office, MSU Technologies and have benefitted from many of the programs put in place by the MSU Research Foundation’s venture studio, Spartan Innovations.
RCV Opportunity Fund II will be the 4th direct venture fund managed by Wesley and his team. In addition to RCV Pre-Seed Fund, RCV Opportunity Fund I, and II, Wesley manages the Michigan Rise Pre-Seed Fund III, a collaboration between the MSU Research Foundation and Michigan Economic Development Corporation.
The following outlines the family of venture funds and some of the key investment guidelines related to each fund.
Historically, many public land-grant universities located outside of urban centers have lacked early-stage gap and venture funds to commercialize inventions, relying solely on angel investors in the community to help fund early-stage startups.
Over the last two decades, many universities and economic development entities across the country are trying to bring more capital to bear to drive economic development through entrepreneurship to commercialize university intellectual property.
Across the State of Michigan, there are 11 such University and Economic Development Related Funds today, up from 4 in 2014. Across the country, it’s estimated that there are over 75 active university related venture funds at this time.
“Seven years ago, there was no venture capital in the greater Lansing area. Our hope is that what we’re doing will attract more like-minded investors to see the great things we’re working on,” said Wesley. “And while we’ve made a lot of progress, our work is far from complete, and this new fund will allow us to continue our work as a driver of the new economy, job creation and economic diversity.”
While formalizing this concept was approved by the MSU Research Foundation Board of Directors in 2015, MSU and the MSU Research Foundation has been active in technology commercialization for many years. RCV has added to MSU’s culture of innovation and entrepreneurship by adding another critical piece to the puzzle.
Since 2015, the MSU Research Foundation has built up a system of resources and subsidiary organizations that help move cutting edge technologies out of the University through the basis of a startup company. The organizations within the MSU Research Foundation family include Spartan Innovations (venture development), Red Cedar Ventures and the Michigan Rise Pre-Seed Fund III (venture investing) and select real estate investments that include over 190,000 square feet of office and lab space populated by startup companies and corporate innovation partners.
“The system of resources we have put in place is foundational for building a thriving innovation ecosystem, and this new fund will continue to build on this vision,” said Wesley.
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About Michigan State University Research Foundation
The Michigan State University Research Foundation is a non-profit research foundation associated with Michigan State University (MSU), the premier land grant university in the nation. The MSU Research Foundation was formed in 1973 is focused on helping MSU achieve its objectives around economic development through the commercialization of intellectual property created by its faculty, staff, and students.
In addition to providing over $10 million in research funding to MSU annually, the MSU Research Foundation owns strategic real estate assets and operates subsidiary organizations focused on technology commercialization and economic development. These organizations - Spartan Innovations, Red Cedar Ventures, and the Michigan Rise Pre-Seed Fund III - are key partners in the MSU Innovation Center along with MSU Business Connect and MSU Technologies.