A Cleveland-based firm that invests in young technology companies, Early Stage is going to open an office in Ann Arbor as part of a deal to receive $13 million from Venture Michigan Fund.

A managing partner with Early Stage, Jonathan Murray, said that Early Stage received the money provided that they use a large part of money to investments within the state. There is no requirement though that it will be invested on Michigan companies.

The Venture Michigan Fund invests in pther funds that is dedicated to finance companies within the state.

Murray said that Early Stage is planning to hire a professional investor to staff the office at Ann Arbor full-time. Although it has given more attention to investment in Ohio, the firm is looking forward to investing throughout the Midwest.

Early Stage have not yet invested in Michigan but according to Murray the stae of Michigan is a good fit for the firm’s investment. He believes that “neither Michigan nor Ohio have enough early-stage capital to meet the needs of startup companies worthy of investment.”

Murray said, “We thought the model we’ve successfully executed in Ohio would transport to Michigan.”

Early Stage has previously done business with Credit Suisse First Boston. It is the company which is managing the money for Venture Michigan Fund.

Murray and Jim Petras, the managing partners of the firm are both graduates of the University of Michigan.

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