Release of Brookings Institution Metropolitan Policy Program report on Great Lakes Venture Capital Building

Release of Brookings Institution Metropolitan Policy Program report on Great Lakes Venture Capital Building

February 3, 2010

On January 29th the Brookings Institution released it's report focused on reinvigorating the Great Lakes Economy.   Entitled TURNING UP THE HEAT: HOW VENTURE CAPITAL CAN HELP FUEL THE ECONOMIC TRANSFORMATION OF THE GREAT LAKES REGION, the study offers two recommendations:

 

- ¢ The core recommendation is to create a Great Lakes 21st Century Fund, a $1 billion to $2 billion fund of funds that would invest in early stage venture capital funds operating in and focused on the Great Lakes region. Such a fund would have three major objectives:

 

 

o To invest in early-stage venture capital funds with a presence in the region that focus on investing in operating companies in the region.

 

o To co-invest in selected operating companies that are in the portfolios of the venture capital funds in which it invests and to co-invest in these companies through successive financing rounds.

 

o To co-invest with large national and international venture firms that create offices in the Great Lakes region.

 

 

- ¢ The key complementary recommendation is that a variety of private and public stakeholders- ”including federal, state, and local government leaders, research institutions, the philanthropic sector, and catalytic enterprises- ”work in parallel with the investor community to create a vigorous support system for venture investment. These actors should not only play a direct role in growing and sustaining venture investment, but also in supporting the research and development, talent generation, and entrepreneurial activities needed to create profitable deals.