Michigan Entrepreneurial & Investment Landscape Guide
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2015 Michigan Entrepreneurial & Investment Landscape Guide 1 WE ARE PROUD TO SUPPORT MICHIGAN VENTURE CAPITAL ASSOCIATION Invested in Fund Performance. We use decades of fund industry experience to help funds and their managers succeed at every stage of the fund life cycle – formation and operations, fund transactions and fund regulation. For the breadth and depth to handle all these needs, choose lawyers who know your world – Pepper Hamilton LLP. Berwyn Boston Detroit Harrisburg Los Angeles New York Orange County Philadelphia Pittsburgh Princeton Silicon Valley Washington Wilmington www.pepperlaw.com 2 ABOUT BECOME A MEMBER INFORMATION ON MICHIGAN PROGRAMS MVCA BLOG! Visit MichiganVCA.org for even more tools to navigate the entrepreneurial & investment landscape in Michigan! WHAT HAPPENS WHEN BUSINESS meets green light The road to success runs through Michigan. Michigan is once again becoming the epicenter of the entrepreneurial spirit. World-class innovation. High-tech work force. Abundant venture capital. Regulatory reinvention. All create an ideal combination of opportunity, resources and passion for business right here in Michigan. 888.565.0052 michiganbusiness.org Dear Reader, Michigan Venture Capital Association is proud to represent the many talented investors who support Michigan’s most promising entrepreneurial companies. The combined work of our membership – Michigan’s angel and venture community – and a statewide commitment to nurture economic activity at the entrepreneurial and growth stages is an important part of Michigan’s economic come-back story. Michigan boasts one of the most collaborative entrepreneurial support networks in the country, with a rich variety of funding sources and professional resources. There are currently 129 venture-backed companies in Michigan – a 70% increase over five years ago. Angel investment has also increased by over 200% during that same time and together, venture firms and angels are responsible for backing 97% of all startup companies in Michigan in the last year. In the profiles that follow, you’ll find a brief introduction to key investors fueling Michigan’s fastest growing companies and the dense network of local resources that support the entrepreneurial community. This guide, combined with the many educational and networking events MVCA hosts each year, allow us to share our strengths and build the relationships necessary to move more businesses forward, create new and better jobs, |and help redefine our economy. There are many opportunities to be a part of the thriving, robust entrepreneurial ecosystem in our state. If you aren’t already a member of MVCA, please consider joining us. If you are a member, we hope you are taking advantage of all the member benefits offered each year. We hope this guide helps you make the valuable connections that ensure Michigan remains a premier Midwest and national venture capital center of excellence for many years to come. All the best, Maureen Miller Brosnan - Executive Director 4 Table of Contents Michigan Investment Landscape Guide . 6 Angel Group Ann Arbor Angels . 8 BELLE Michigan . 8 BlueWater Angels Investment Network . 9 Capital Community Angel Investors . 9 Grand Angels . 10 Great Lakes Angels . 10 Michigan Angel Fund . 11 Muskegon Angels . 11 Northern Michigan Angels . 12 Venture Capital 5AM Ventures . 13 Allos Ventures . 13 Amherst Fund . 14 Apjohn Ventures . 14 Michigan Accelerator Fund I . 27 Arbor Partners . 15 Michigan eLab . 28 Arboretum Ventures . 15 MK Capital . 28 Arsenal Venture Partners . 16 North Coast Technology Investors . 29 Augment Ventures . 16 Open Prairie Ventures . 29 Baird Capital . 17 Plymouth Ventures . 30 Beringea . 17 Renaissance Venture Capital Fund . 30 BioStar Ventures . 18 Resonant Venture Partners . 31 Chrysalis Ventures . 18 River Cities Capital Funds . 31 Cultivian Sandbox Ventures . 19 RPM Ventures . 32 Detroit Innovate . 19 Start Garden . 32 Detroit Venture Partners . 20 TGap Ventures . 33 Draper Triangle Ventures . 20 Three Leaf Ventures . 33 EDF Ventures . 21 Venture Investors . 34 First Step Fund . 21 Wolverine Venture Fund . 34 Flagship Ventures . 22 Fletcher Spaght Ventures . 22 Entrepreneurial Support Organizations . 35 Fontinalis Partners . 23 Service Providers . 48 GM Ventures . 23 MVCA Staff and Board of Directors . 51 Hopen Life Science Ventures . 24 MVCA Overview . 52 Huron River Ventures . 24 Hyde Park Venture Partners . 25 © 2015 Michigan Venture Capital Association . This report may be copied and distributed IncWell . 25 so long as the report is not altered and fees are not charged to the recipients of such Invest Michigan . 26 copies . Charts, graphs, and other images may be excerpted, copied, and combined with other material so long as such excerpted content is not altered and Michigan Venture Ludlow Ventures . 26 Capital Association is identified as the source of the content and owner of copyright . Mercury Fund . 27 All other rights are reserved . 5 Michigan Investment Landscape Michigan’s economic health depends on the existence of a diverse range of active, growing businesses. Angel and venture investors that are active in Michigan invest in a wide variety of sectors and stages. This graphic shows how many angel and venture capital investors focus on each sector within each stage in a company’s growth. This graphic is a condensed version of the investor profiles in this guide. To find out more on the investors that meet certain sector and stage criteria, review the investor profiles on the following pages. idea/pre-seed seed early growth mezzanine Life Science 8 25 33 25 8 Information Technology 7 31 41 27 8 Alternative Energy 8 20 21 11 3 Media 6 16 20 14 5 Adv . Materials & Manufacturing 7 21 26 18 6 Business Services 5 21 25 14 6 Consumer investors Products 7 18 19 12 5 Other 5 15 22 18 6 idea/pre-seed seed early growth mezzanine business growth 6 Michigan Entrepreneurial Resource Landscape The entrepreneurial resource organizations in Michigan serve a wide variety of sectors and stages. This graphic shows how many organizations focus on each sector within each stage in a company’s growth. This graphic is a condensed version of the entrepreneurial resource profiles in this guide. To find out which organizations meet your sector and stage criteria, please review the entrepreneurial resource profiles on the following pages. idea/pre-seed seed early growth mezzanine public Life Science 35 39 39 34 26 20 Information Technology 40 43 41 36 27 21 Alternative Energy 37 40 39 34 25 19 Media 22 23 22 20 14 12 Adv . Materials & Manufacturing 36 39 38 34 26 20 Business Services 33 35 35 31 23 16 Consumer 30 31 29 27 20 14 resources Products Other 9 9 8 6 6 5 idea/pre-seed seed early growth mezzanine public business growth WHAT TYPES OF ENTREPRENEURIAL RESOURCES EXIST IN MICHIGAN? Talent Networking Business Business Attraction/ and/or Talent Retention/Expansion/ Incubation Acceleration Retention Events Development Capital Attraction Other 25 36 26 41 29 31 27 13 NUMBER OF ORGANIZATIONS IN THIS GUIDE THAT PROVIDE THIS RESOURCE 7 ANGEL GROUP Ann Arbor Angels BELLE Michigan www .annarborangels .org www .michbelles .com Southeast Michigan Michigan 201 South Division Street, #430 18530 Mack Avenue, Suite 562 Ann Arbor, MI 48104 MEMBER Grosse Pointe Farms, MI 48236 MEMBER Key Staff: Key Staff: DAVID HARTMANN - President CAROLYN CASSIN - General Partner [email protected] 734-604-6026 [email protected] THOMAS LOZSER - Treasurer NANCY PHILIPPART - General Partner [email protected] Number of Active MI Investments: 23 TERESE HUNWICK - General Partner Number of Angels Investors: 18 [email protected] Group Overview: Number of Active MI Investments: 6 Ann Arbor Angels was founded in 2004 and has evolved into a Number of Angels Investors: 29 member-driven angel investment organization, comprised of former CEOs and founders as well as business and investment leaders Group Overview: in the Ann Arbor community. Ann Arbor Angels invests in young BELLE Michigan’s mission is to provide superior returns for companies with breakthrough products or services. In addition to investors while serving the early stage capital needs of women-led providing capital, members share our expertise, provide mentoring, companies. The companies invested in will have access not only and facilitate connections to the broader marketplace. to BELLE’s capital but to a network of limited partners who bring years of experience as entrepreneurs, professionals, and corporate Preferred Initial Investment Size: executives to support the success of portfolio companies. $250,000 Preferred Initial Investment Size: Industry Sectors: $100,000 to $150,000 Life Information Alternative Adv Materials Business Consumer Sciences Technology Energy Media & Manufacturing Services Products Other Industry Sectors: Life Information Alternative Adv Materials Business Consumer Sciences Technology Energy Media & Manufacturing Services Products Other Life Science Subsector: Healthcare Animal Health/ Pharmaceuticals Devices Diagnostics Biotechnology Services Agriculture Other Life Science Subsector: Healthcare Animal Health/ Pharmaceuticals Devices Diagnostics Biotechnology Services Agriculture Other Information Technology Subsector: Hardware Software Services Other Information Technology Subsector: Hardware Software Services Other Investment Stage: Idea & Pre-Seed Seed Early Growth Mezzanine Investment Stage: Idea & Pre-Seed Seed Early Growth Mezzanine Portfolio Highlights: 1 A2A makes new or follow-on investments on average of