Michigan SSBCI venture capital, what a fund must prove before it qualifies

The GP must have a Michigan investment decision-maker

A fund does not need to be headquartered in Michigan, but at least one managing or general partner with investment decision-making authority and carry must live in Michigan full time.

The GP must also have financial risk in the fund, generally at least 1%. The program requires evidence that the SSBCI investment will cause and result in at least an equal amount of new private capital.

This makes the timing of the request important. A commitment made after a fund's initial close may need a clear explanation of how it still creates additional private financing.

The portfolio company requirements are specific

The capital must support companies whose headquarters and principal operations are in Michigan. The program targets technology-based businesses connected to sectors such as mobility, advanced manufacturing, life sciences, medical devices, technology, agribusiness, logistics, and other areas tied to regional impact.

The program also limits support for larger businesses. The state page says eligible companies generally must have 500 employees or fewer and cannot exceed 750 employees. Program funding may not exceed $5 million per investment, and the total investment in an eligible company may not exceed $20 million.

What to prepare before the conversation

A Michigan SSBCI package should include:

• The Michigan residency and carry position of the investment decision-maker.
• The GP's financial commitment and private-capital causation narrative.
• The fund's technology and regional-impact strategy.
• A portfolio construction plan showing how Michigan companies will be sourced and supported.
• Policies confirming pari passu treatment and the absence of lobbying or political contributions.