Automation Alley Monday announced a $100 million investment fund available to second-stage companies.
What Automation Alley would describe only as a “highly successful, experienced investor” provided the capital for the Stage 2 Innovations Fund.
The investor, along with Tom LaSorda, former CEO of Chrysler, are the co-founders of this investment fund. Simon Boag will be the Chief Executive Officer of Stage 2 Innovations LLC.
“I am extremely excited to be working alongside our investor, who has years of successful start-up experience,” said LaSorda. “Together, we are devoting our time to help commercialize anything new and big.”
The goal of this fund is to make a significant impact in the global market while fulfilling a critical need for second-stage funding in the entrepreneurial community. Second-stage companies are one of the key sources for job growth in the current economy.
Second-stage companies are generally defined as those that have grown past the startup stage but have not grown to maturity. Second-stage companies typically have too many employees for the comfortable control span of one owner and benefit from adding professional managers, but do not yet have a full-scale professional management team. In terms of revenue, most companies approach second stage status as they approach $1 million in annual revenue, and for most companies, $50 million in revenue is the upper limit for second stage.
“The state of Michigan has a strong tradition of rich talent and innovative ideas, and this fund brings the final piece to that puzzle,” said Ken Rogers, executive director of Automation Alley. “Tom LaSorda and his team represent a wealth of knowledge and business savvy that, when combined with such incredible financial resources, will give second-stage companies the entrepreneurial support needed to elevate business growth in Michigan.”
The Stage 2 Innovations Fund plans to invest in innovative technologies with great potential for large-scale commercialization. Eligible stage-two innovations can apply online at www.stage2innovations.com.