Alexander Alusheff

Lansing State Journal

LANSING - The latest venture capital firm to launch in Lansing isn't here to support its tech sector or lucrative healthcare startups. Instead, it will invest in Lansing's fledgling fashion industry.

New York fashion executives Jon Lewis and John Elmuccio are behind Project I, which opened in January inside The Runway, a state-wide fashion incubator based in the Knapp's Centre downtown.

"When we found out about the incubator, we were really impressed by it," said Lewis, chairman of the venture firm. "It's like what you see in New York in terms of size and capability."

Lewis is a Grand Blanc native and heard about the growing fashion scene in Flint from a family member. When he came for a visit, he discovered talent in Flint, Lansing and Detroit. They opened an office in Flint last summer.

"The fact that there's a New York garment district is a myth," said Elmuccio, the CEO of Project I, who runs the New York office. "People can't afford the real estate. There's actually a burgeoning apparel community in Detroit, Lansing, Flint. This is where the new garment center in America will be. They are recognizing in New York that Detroit and Lansing are becoming hip."

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Project I's move to Lansing is a sign that designers don't have to move to New York, Los Angeles or Chicago to be successful in the industry, said Meleena Herring, operations coordinator at The Runway.

"The way the fashion industry is starting to turn, you don't necessarily have to be in these places to market your products there," Herring said.

It's one of the reasons Grand Ledge natives Shawn and Claire Buitendorp returned from New York to continue work on their luxury clothing business, Shock and Awww.

The 27-year-old twins, who have designed outfits for Katy Perry, violinist Lindsey Stirling and dance-pop girl group Little Mix, have also joined The Runway's advisory board to help mentor its 12 tenants.

"We want to help emerging designers feel the success we have felt," said Claire Buitendorp, who previously worked for designer Betsey Johnson in New York with her sister. "For us, success occurred here when were lived in Grand Ledge."

The biggest roadblock to success is funding, they said. It can cost thousands of dollars to make a clothing line.

"Without continuous capital, you can't put more money in the business to find new stock," Shawn Buitendorp said.

Shawn Buitendorp said the two have invested more than $150,000 in their business. The $222,222.22 they won from the VH1 show, "Twinning", in 2015, definitely helped. But it's hardly a traditional way to fund a business.

That's where Project I can come in to help growing startups.

Project I runs a $5 million fund and is seeking to invest between $250,000 and $1 million in companies across the state in exchange for an equity stake in the business. Lewis and Elmuccio signed a one-year lease to operate out of The Runway.

"We're not looking for companies that have a traditional business model," Elmuccio said. "We're looking for a business that follows the disruptor model with direct-to-customer sales."

The two also sit on The Runway's advisory board and provide mentoring to the tenants.

Ashton Keys, an incoming Michigan State University senior, is a designer who hopes to work with the venture capital firm in the future.

Lewis is mentoring him, and he recently traveled to Project I's New York office to consult with the team about his business, Ninety6. The name comes from the year 1996, from which Keys draws inspiration, in part from the hip-hop scene and rap artists such as Tupac Shakur and Notorious B.I.G.

Keys credits the Runway for getting him this far.

"It sent me to the next level," said Keys, 21, of Detroit. "It was a match made in heaven."

Keys enjoys starting up in Lansing because the fashion scene is relatively new here and he has room to create his own niche.

The Runway was formed in 2014 by the Lansing Economic Area Partnership, Lansing Economic Development Corporation and the city of Lansing.

The idea was to tap into some of the talent already being groomed in the state through fashion programs at MSU, Lansing Community College and other schools, said Joe Carr, director of The Runway and start up innovation manager for LEAP.

With the talent and programs already in place, the region's fashion industry was "a little bit of a sleeping giant," Carr said.

Since then, 22 businesses have graduated from The Runway, creating 34 jobs, he said.

"This is highlighting our region and our state as becoming a growing fashion resource," Carr said.



Contact Alexander Alusheff at (517) 388-5973 or aalusheff@lsj.com. Follow him on Twitter @alexalusheff.

On the web

Projecti.us

Shockandawww.com

theninety6.com

runwaylansing.com​