The BRCC focuses on life sciences broadly defined to encompass pharmaceuticals, medical devices and diagnostics. Eligible companies must have a substantial presence or business link to the State of Michigan. The BRCC is required by legislation to structure any funding with the potential to achieve a return on its investment. Investments range from $100,000 to $250,000 per deal.

Process

Investment Screening

From the many business plans we receive, we actively screen candidates through our investment criteria. We invite selected companies to our office for meetings. We also work actively with University Technology Transfer Offices for potential projects.

Due Diligence

After the initial meetings, we identify the best candidates and begin various phases of both scientific and commercialization due diligence. We commonly involve outside experts as part of this assessment. This process may take several weeks to several months.

Board Approval

The Board of Governor’s Investment Committee must approve all investments by the BRCC.

Term Sheet and Close

For a small set of companies, we will issue a term sheet and negotiate the final terms and size of our investment. Some instances, recruiting a venture capital syndicate or angel investors to the deal will be necessary. This process can also take several weeks to several months.

Investment

After a successful close, and with mutual agreement, the BRCC may assume a role in the company to assist in the development of the technology.

Criteria

Please carefully review the following criteria before submitting an application for funding.

Eligible companies must:

• Be properly formed as a Michigan corporation or authorized to transact business in Michigan, and in good standing (see the Corporations Online Filing System maintained by the Department of Licensing and Regulatory Affairs to confirm proper registration and status). 
• Be on a scalable path that has strong potential for job creation and diversifying the Michigan economy. 
• Be a for-profit LLC, C corporation, or S corporation that has been in business for seven years or less, unless still reasonably considered an early startup business. 
• Have demonstrated execution against business model and be in the earliest stages of commercialization in Life Sciences, including medical device technology.

For an initial review, the BRCC requires the following materials:

• Business Plan and Executive Summary
• Investor Pitch PowerPoint
• Financial Model
• Development Plan (optionally embedded in your Business Plan)
• Capitalization Table

Some of the factors we consider include:

• Likelihood of providing return on investment to the BRCC
• Novel product or platform technology that helps patients
• Solid intellectual property portfolio with freedom to operate
• Unmet market opportunity
• Competitive business advantage
• Experienced, entrepreneurial team (CEO, scientific team, and advisors)
• Initial proof of concept (pre-clinical data or prototype design)
• Clear milestones and commercialization plan
• Realistic exit strategy

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