20130211-NEWS--0001-NAT-CCI-CD_-- 2/8/2013 6:36 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 6 FEBRUARY 11 – 17, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 New VC fund targets firms on the grow Beringea co-directs Revival under the radar on $180 million pot artists’ block near market BY TOM HENDERSON CRAIN’S DETROIT BUSINESS CRAIN’S PHOTO ILLUSTRATION/JEFF JOHNSTON, CDB* The formation of a $180 million MICHIGAN BUSINESS fund to invest in state companies looking to grow is expected to be formally announced today. Growing like a The Michigan Growth Capital Part- ners II LP will be co-managed by Farmington Hills-based Beringea Exit left LLC, the state’s largest venture cap- ital firm, with $490 million under management, and Credit Suisse’s The business of pot, Page 11 New York City-based Customized With ‘War Room’ over, what’s Granholm’s next act? Fund Investment Group. The $180 million is from the This Just In BY CHRIS GAUTZ ambassador to Canada and for state of Michigan’s retirement sys- CAPITOL CORRESPONDENT Cabinet secretary positions in La- tem and follows an investment of TechTown, partners get $1M Her audience ... bor or Energy for President $150 million that the retirement Dressed in a military-style “ Barack Obama. system committed in 2008 to the to start tech exchange jacket, giving her liberal troops expected her to be a If Granholm, 54, does end up first Michigan Growth Capital Fund, their marching orders in last Detroit-based TechTown will with a post in the Obama admin- also co-managed by Beringea and fall’s presidential election, for- announce today that it and its firebrand to draw istration, it will be a return to the Credit Suisse. mer Gov. Jennifer Granholm en- partners, Bizdom and Invest De- type of traditional career path Officials at Beringea and Credit thusiastically urged her televi- troit, have received a $1 mil- blood at every many expected for her after being Suisse say they sion audience on “The War lion grant from the Michigan term-limited out as governor. hope to boost Room” to defeat the “enemy”: opportunity. Strategic Fund to launch the De- In fact, upon leaving Lansing the size of the Mitt Romney and the Republican ” troit Technology Exchange. in early 2011, Granholm did start second fund in Party. Craig Ruff, Public Sector Consultants The grant is expected to down that path — taking appoint- coming months “We’re going into battle here, lead to the creation of 15 com- ments to the boards of Dow Chemi- by bringing in people! Suit up and get ready to Her last show — which is end- panies and 25 jobs, the reten- cal Co. and the Fincantieri Marine other limited- roll out!” Granholm shouted. ing in the wake of Al Jazeera’s tion of 35 jobs and the genera- Group. She also joined the Pew partner in- Now Granholm herself is get- purchase of Current TV — was tion of nearly $900,000 in new Charitable Trusts’ clean energy pro- vestors. ting ready to roll out, but the des- Thursday. In the meantime, her investments. Charles Roth- tination is unclear. name has surfaced as a possible See Granholm, Page 30 stein, senior Plans for the exchange in- Rothstein managing direc- clude a 10-week summer boot *Foreground: AP photo by J. Scott Applewhite | Background: Google Image search camp to help college students tor at Beringea, said the fund learn how to launch tech- would consider companies across based companies, an execu- a broad range of industries. tive-in-residence program to “We’re pretty agnostic on indus- bring experienced entrepre- tries, but we do expect to do a fair neurs to Detroit who will help amount of deals in areas that mine underdeveloped intellec- New push for tax on online sales Michigan has a focus on, including tual property to create compa- advanced manufacturing, health nies, raise outside venture care and clean tech,” he said. The capital and place experienced fund also will look at retail compa- people in Detroit’s startups to Whether it can be collected is another question nies. help their development. Rothstein said a typical invest- BY SHERRI WELCH headquartered here or have a at the point of sale. Invest Detroit is affiliated ment would range between $3 mil- CRAIN’S DETROIT BUSINESS physical presence, such as a But can the state enforce the with Business Leaders for lion and $12 million. He said com- store. proposed regulations? Michigan and invests in pro- panies interested in getting capital Michigan could bring in tens of House Bill 4202 would expand The Michigan Department of Trea- jects or companies through a to grow should contact him at (248) millions of dollars in new sales that pool to include retailers who sury and Washington, D.C.-based variety of funds. Bizdom is a 489-9000 or at crothstein@ tax revenue if legislation intro- don’t have a direct physical pres- National Retail Federation aren’t creation of Dan Gilbert and beringea.com or Sean O’Donnell, a duced last week to level the play- ence in the state, but who work sure, given a 1992 U.S. Supreme serves as incubator in the principal in the Birmingham office ing field between brick-and- mor- with Michigan-based people and Court ruling that states do not Madison Building downtown of Credit Suisse, at (248) 792-6671 or tar and online retailers is passed. web affiliates who refer cus- have the authority to require re- to help turn interesting ideas sean.o’[email protected]. Currently, online retailers are tomers to the retailers’ websites mote sellers to collect sales tax into businesses. “We’re very collaborative, and only required to collect tax on for a fee. The retailers would be — Tom Henderson Michigan purchases if they are responsible for collecting the tax See Sales tax, Page 31 See VC, Page 29 Crain’s is seeking nominations for entrepreneurs Nominees will be judged for their innovation, problem-solving ability or sheer relentlessness. Additional categories include social entrepreneurs and entrepreneurial spirit. NEWSPAPER Deadline: March 18 | www.crainsdetroit.com/nominate 20130211-NEWS--0001-NAT-CCI-CD_-- 2/8/2013 6:48 PM Page 1 ® Cwww.crainsdetroit.comRAIN Vol. 29, No. 6 ’SDETROITFEBRUARY 2013 BUSINESS$2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Inside Michigan New VC fund Growing like a targets firms The business of pot, Page 11 on the grow Q&A: GR’s Mayor Heartwell Beringea co-directs on sustainability, Page 15 $180 million pot BY TOM HENDERSON World Watch: PHOTO ILLUSTRATION/JEFF JOHNSTON, CDB* CRAIN’S DETROIT BUSINESS Spotlight on The formation of a $180 million fund to invest in state companies Michigan biz looking to grow is expected to be in the U.K., Page 16 formally announced today. The Michigan Growth Capital Part- ners II LP will be co-managed by Crain’s List Farmington Hills-based Beringea Exit left LLC, the state’s largest venture cap- ital firm, with $490 million under Largest physician management, and Credit Suisse’s organizations, Page 22 New York City-based Customized With ‘War Room’ over, what’s Granholm’s next act? Fund Investment Group. The $180 million is from the This Just In BY CHRIS GAUTZ ambassador to Canada and for state of Michigan’s retirement sys- CAPITOL CORRESPONDENT Cabinet secretary positions in La- tem and follows an investment of TechTown, partners get $1M Her audience ... bor or Energy for President $150 million that the retirement Dressed in a military-style “ Barack Obama. system committed in 2008 to the to start tech exchange jacket, giving her liberal troops expected her to be a If Granholm, 54, does end up first Michigan Growth Capital Fund, their marching orders in last Detroit-based TechTown will with a post in the Obama admin- also co-managed by Beringea and fall’s presidential election, for- announce today that it and its firebrand to draw istration, it will be a return to the Credit Suisse. mer Gov. Jennifer Granholm en- partners, Bizdom and Invest De- type of traditional career path Officials at Beringea and Credit thusiastically urged her televi- troit, have received a $1 mil- blood at every many expected for her after being Suisse say they sion audience on “The War lion grant from the Michigan term-limited out as governor. hope to boost Room” to defeat the “enemy”: opportunity. Strategic Fund to launch the De- In fact, upon leaving Lansing the size of the Mitt Romney and the Republican ” troit Technology Exchange. in early 2011, Granholm did start second fund in Party. Craig Ruff, Public Sector Consultants The grant is expected to down that path — taking appoint- coming months “We’re going into battle here, lead to the creation of 15 com- ments to the boards of Dow Chemi- by bringing in people! Suit up and get ready to Her last show — which is end- panies and 25 jobs, the reten- cal Co. and the Fincantieri Marine other limited- roll out!” Granholm shouted. ing in the wake of Al Jazeera’s tion of 35 jobs and the genera- Group. She also joined the Pew partner in- Now Granholm herself is get- purchase of Current TV — was tion of nearly $900,000 in new Charitable Trusts’ clean energy pro- vestors. ting ready to roll out, but the des- Thursday. In the meantime, her investments. Charles Roth- tination is unclear. name has surfaced as a possible See Granholm, Page 30 stein, senior Plans for the exchange in- Rothstein managing direc- clude a 10-week summer boot *Foreground: AP photo by J.