New Venture 313 effort brings together resources for entrepreneurs’ success

Formally announced Thursday, the philanthropic money from the Gilberts essentially helps further the work of three of the city’s major support organizations for all manner of startups and entrepreneurs.

The organizations doing the on-the-ground work are:

• Invest Detroit, a Community Developmental Financial Institution;
• TechTown Detroit, a nonprofit that provides programs, education and resources for early- to growth-stage small businesses and tech entrepreneurs;
• Detroit Development Fund, also a CDFI, providing loans and technical assistance to small business owners who cannot get all the capital they need from traditional financing sources.

Those organizations will provide a mix of direct investment, grants and loans, as well as lines of credit, depending on the situation of each company or entrepreneur.

For Invest Detroit Ventures, a high-volume, early-stage venture capital fund, having both the funding and the different organizations working together could help those companies seeking the Venture 313 services and money, and with a quick turnaround, according to Jeff Ponders, a principal at the fund.

“We’ve got the infrastructure in place, and now we can actually go and get that first institutional round (of investment),” Ponders said. “And so I think what we expect to see happen overnight, we’ll work together and you’ll start to see some companies will matriculate from idea to first round. And there will be other partners that enter the program.”

Ponders also pointed to the so-called playbooks, which he said will be tailored to the specific needs of each entrepreneur going through the program.

For top city officials, the program helps with tackling a major problem they say they’re having: connecting with would-be entrepreneurs who have an idea, but are unaware of some of the services available.

“Part of what this forum creates an opportunity for us to do is tie together pieces that otherwise you might not know about,” said Nicole Sherard-Freeman, the city’s group executive for jobs, economy and Detroit at Work.