The Michigan Economic Development Corp. took a step towards authorizing an earmark of $12 million for two new funds designed to invest in early-stage startups.

A draft request for proposals was approved by the MEDC's Strategic Economic & Commercialization Investment board at a meeting today. The RFP is seeking proposals to launch Michigan-based “accelerator” funds designed to invest in very early stage companies. The board will hold a public hearing about the draft RFP and vote on a final draft before it goes live.

“Michigan continues to suffer from a lack of capital for early stage technology companies and experienced equity investors,” the MEDC said in a memo.

The MEDC expects the two funds to create 12 to 24 new companies and 7-10 new investors.

The RFP requires a business plan and applicants to bring at least $1 million in matching funds to the table to be eligible for the state earmark. Proposals are due May 19, and award decisions are scheduled for June 10.

Qualifying new funds also are required to only invest in Michigan-based companies, work with at least one in-state university and Smart Zone and have one staffer with at least five years of successful venture capital investment experience or C-suite entrepreneurial management experience, according to a draft of the RFP.

Unlike other funds created with state earmarks, the two accelerator funds will be selected by a group of venture capital experts working in the private sector, not the MEDC.