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EAST LANSING, Mich. — The Michigan Rise Pre-Seed III Fund, a wholly owned subsidiary of the Michigan State University Research Foundation, today announced the completion of two recent purchase order (PO) financing facilities to support their growth.
Michigan Rise is a company funded by the Michigan State University Research Foundation (MSU Research Foundation) and the Michigan Economic Development Corporation (MEDC) and invests in Michigan-based technology startup companies.
Michigan Rise’s Purchase Order Financing is a creative funding option that empowers qualified young Michigan-based companies to manage cash flow and obtain access to working capital to fulfill purchase orders they receive. This type of financing can make sense for example for businesses that are unable or in need of supplemental backing to bank financing. This program helps growing early-stage startups get to the next level of growth and success.
“We understand the challenges of growing an early-stage business,” said Jeff Wesley, Executive Director at Michigan Rise. “Our funding is designed for young growing companies that might need additional support or might not otherwise be able to access debt financing elsewhere.”
Purchase order financing is a way to provide flexible lending to clients across a broad range of industries. Unique to this program is the mandate from the MSU Research Foundation and MEDC that these financing facilities be used for growing high-tech companies across the state of Michigan.
PO Financing Requirements:
- Michigan-based with a majority of teams members in the state
- High-tech/high-growth company
- Good financial standing
- Founded in the last ten years
- Business-to-Business or Business-to-Government business model
Ann Abor-based PassiveBolt develops smart hardware and software for lock manufacturers and platforms addressing access controls was the first company to take advantage of the PO financing services.
“We had the opportunity to take a growing company like PassiveBolt to the next level by enabling them to take on more orders,” said Tommy Skinner, Venture Associate at Michigan Rise. “PO financing is ideal for a company that is experiencing growth in a short period of time.”
Traverse City-based Promethient, a developer of human-scaled climate control gear for outdoor use was able to leverage Michigan Rise’s PO Financing Facility to fulfill customer orders while they were waiting on cash flow.
“Production on the Thermavance technology produced by Promethient is ramping up” continued Skinner, “and being able to source the complex materials needed for production and order fulfillment is a perfect fit for this financial tool.”
Promethients products rely on graphene coupled with a thermoelectric heat pump to be sewn into products.
“The Michigan Rise PO Financing program was rolled out at an ideal time for our organization,” said Bill Myers CEO & President of Promethient. “This program could benefit many other early-stage businesses in Michigan, including others in the Grand Traverse region.”
To learn more about Michigan Rise Pre-Seed Fund III and PO Financing contact Tommy Skinner at pofinancing@michiganrise.com or visit the Michigan Rise website at MichiganRise.com.
