Basketball great Magic Johnson joins venture capital fund in Detroit

To a cheering crowd of Quicken Loans employees and other supporters, Earvin (Magic) Johnson announced Thursday that he’s joining Quicken Chairman Dan Gilbert’s venture capital fund to remake Detroit as an entrepreneurial hub.

“This is a tough time for the state but we’re going to bring it back one day at a time, one investment at a time,” Johnson said.

Johnson said he was writing “a big check” to join Gilbert’s Detroit Venture Partners, and while he wouldn’t reveal the amount, he confirmed that it was in the millions of dollars. He added that he planned to take an active role in making investment decisions with Gilbert and DVP’s two other partners.

Gilbert said he felt confident that his efforts were paying off toward transforming downtown into a live, work and play environment for young entrepreneurs — what Gilbert calls Detroit 2.0.

“The spirit here is strong, and it’s getting stronger every day,” he said.

Josh Linkner, CEO and managing partner of Detroit Venture Partners, described DVP as having an all-digital strategy, backing start-up ventures involved in various Web-based technologies and services.

The fourth partner in DVP is Brian Hermelin, a businessman and associate of Gilbert.

Since it started late last year, DVP has reviewed some 400 proposals and made six investments in start-up firms. Five of those six firms are headquartered downtown and the other has an office there.

The news conference was typical of Gilbert events, a high-energy affair attended by well more than 100 Quicken employees and featuring a pep-rally atmosphere.

“It’s was an easy decision for me to make,” Johnson said of his investment. He called Mayor Dave Bing, who attended the event, “one of the best mayors in the country,” and noted that his own family still lives in Lansing and that he visits the state frequently from his Los Angeles home.

He noted that young entrepreneurs like those helped by DVP often leave Michigan because they can’t find the resources they need here, including venture capital.

“We’ll be looking for the brightest young talent in the state, and we’re going to keep them right here,” Johnson said.

Johnson also said he might invest additional funds with Gilbert in buying downtown real estate.

Gilbert has bought or placed under contract four downtown buildings in recent months, which he intends to remake as venues for his own employees as well as entrepreneurs and retailers willing to locate downtown.

Source: Detroit Free Press