Red Cedar Ventures, launched by MSU Foundation, is set to provide both gap and growth capital to businesses affiliated with Michigan State University.
Michigan State University Foundation, a non-profit affiliate of Michigan State University (MSU), has launched a $5m VC subsidiary dubbed Red Cedar Ventures that will invest in MSU-related companies.
Red Cedar will provide both early-stage gap funding as well as growth-stage capital. It builds on the foundation’s existing work in supplying pre-seed funding, which began four years ago and currently stands at $2m across 20 businesses.
The firm will provide money through a Pre-Seed and an Opportunitiy Fund, with the later focused on follow-on investments.
Red Cedar’s executive team will be made up of board members from the foundation. It will be assisted by an advisory board bringing in venture capitalists from across the US and student venture analysts from MSU’s Broad College of Business.
Lou Anna Simon, president of MSU, said: “We have been working hard to put together a campus-wide ecosystem for entrepreneurs that embraces all of the creative talents across the university.
“The creation of these programs addresses a critical capital gap for our own startup companies. Through Red Cedar Ventures, we can make sure the ground-breaking ideas created by Spartans reach those who need them most.”
David Washburn, executive director of MSU Foundation, said: “The Greater Lansing area is fast becoming an attractive place for inventors and entrepreneurs to start and grow their businesses.
“Red Cedar Ventures signals the foundation’s ongoing commitment to the health and growth of our area’s entrepreneurial ecosystem.”
