state’s entrepreneurial programs are “under constant review,” and it’s too early to say whether the MEDC will act on all of the report’s recommendations. However, plans are underway to take the M-TRAC program statewide and create both a proof-of-concept fund and a “first capital” fund.
“The idea is to fail early,” Molnar explained. “If you fail sooner, the less you’re squandering everyone’s time and money.”
Molnar also said that the entrepreneurship and innovation team is in the process of changing how it tracks data, moving from a system based on Google Docs with to Salesforce CRM.
Molnar said the MEDC can’t support the report’s recommendation for a third fund of funds. Miller said her organization supports the creation of a third fund of funds, but they want to see it improved.
“We’ve learned that while successful, the state of Michigan doesn’t need to be as large a player in a fund of funds,” Brosnan explained. “We envision a public-private partnership where the state invests much less, with a combination of philanthropic and corporate backers. I feel confident a third fund will be created, especially since Michigan had proven itself to be a leader—we’re beating the national [venture capital] numbers by four times.”
Molnar said the MEDC has no formal plan to use the report to persuade legislators to maintain the department’s funding. The work of convincing more conservative members of the legislature, some of whom have been vocal opponents, that the MEDC’s programs are valuable is likely to be largely undertaken by stakeholders, such as the MVCA.
“The take-home message, to me, is that the report confirms what [the MEDC] has done is valuable—the investment has paid off,” Molnar added. “We’re working hard and smart to diversify the economy. There’s more work to be done, but significant progress has been made. We’re really proud that taxpayer funds have been used wisely and the citizens of Michigan have received a solid return on their investment.”
