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Table of Contents
Venture Capital in Michigan
Michigan’s Venture Capital Firms . . . . . . . . . . . . . . . 5
Overview of the Venture Capital
Environment in Michigan . . . . . . . . . . . . . . . . . . . . 6
Michigan’s Venture Capital Firms
Support Michigan Businesses . . . . . . . . . . . . . . . . 8
Attracting Capital to Michigan’s
Growing Businesses . . . . . . . . . . . . . . . . . . . . . . . .10
Michigan’s Diversi?ed Economy . . . . . . . . . . . . . . .12
Michigan’s Startup Successes . . . . . . . . . . . . . . . . . .14
Building on the Momentum:
Future Demand for Venture
Capital in Michigan . . . . . . . . . . . . . . . . . . . . . . . . .16
Regional Activity
Washtenaw County – Ann Arbor . . . . . . . . . . . . . . .18
Wayne County – Detroit . . . . . . . . . . . . . . . . . . . . . . .20
Oakland County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
West Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
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Activity Map and Company Spotlights . . . . Center
Angel Capital in Michigan
Angel Groups in Michigan . . . . . . . . . . . . . . . . . . . . .26
Feature: Entrepreneurial Activity
Humming Across Michigan’s Universities . . . . . . 30
National Landscape
Michigan’s Growing Presence
in the National Landscape . . . . . . . . . . . . . . . . . . . . .33
The Michigan Opportunity . . . . . . . . . . . . . . . . . . . .34
Michigan Venture Capital Association
MVCA Board and Staff . . . . . . . . . . . . . . . . . . . . . . . . .36
About MVCA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Member Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
© 2015 Michigan Venture Capital Association. This report may be copied and
distributed so long as the report is not altered and fees are not charged to the
recipients of such 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 Capital Association is identifed as the source of the content and
owner of copyright. All other rights are reserved.
MVCA 2015 VENTURE CAPITAL REPORT 2
Dear Friends
Michigan is proud to be the Comeback State, and a large
part of our ongoing reinvention is credited to our investment
in a strong entrepreneurial environment. We have worked
hard to build one of the most complete support systems in
the country.
At the center of Michigan’s support for innovators looking
to launch and grow new business ventures in Michigan is an
active and thriving venture capital community driven by the
Michigan Venture Capital Association and its members.
Venture capital frms and angel investors continue to invest
in startups, not only bringing capital, but also sharing their
expertise in launching successful businesses with companies
that are expanding Michigan’s economic base.
Te role of venture capitalists in Michigan’s entrepreneurial
economy is critical to our state’s long-term economic
success. As startups continue to grow, we are retaining more
young talent, creating a better business environment, and
expanding opportunities for Michiganders to live, work and
raise a family in our state for generations to come.
Your eforts to invest in our state’s future and promote all
the exciting things happening in Michigan are greatly
appreciated. Tanks in part to your support, entrepreneurs
and investors from across the country and throughout the
globe are choosing to do business right here in Michigan.
On behalf of the state of Michigan, thank you to the
Michigan Venture Capital Association for your leadership
in helping to reinvent our state, grow new businesses, and
create more and better jobs.
Sincerely,
Rick Snyder
Governor
MVCA 2015 VENTURE CAPITAL REPORT 3
Dear Readers
We are pleased to present the 2015 MVCA Annual
Research Report, which refects a growing and vibrant angel
and venture capital community in Michigan. Michigan’s
entrepreneurial ecosystem continues to build momentum and
has been integral to the state’s long-term economic recovery.
Tanks to the diligent participation of Michigan’s venture
capital frms and angel investors, our report is able to
present an accurate look at our industry and its contribution
to Michigan’s economy. Tere are currently 129 venture-
backed companies in Michigan, a 70% increase over fve
years ago. Michigan venture frms actively support the
state’s fastest growing young companies, with local investors
involved in 97% of all startup funding rounds in 2014. Add
to that an almost doubling of the number of venture capital
professionals living, working and investing in Michigan and
45% growth in the number of investors in angel groups,
and it’s easy to see how vital the venture capital and angel
community is to creating long-term viability for a robust
entrepreneurial ecosystem in our state.
As we analyze the past year, we do so knowing that the
demand for venture capital funding is growing in Michigan.
MVCA’s survey of venture capital investors in Michigan
found that their Michigan-based portfolio companies will
require at least $1.3 billion over the next few years, from
frms that have approximately $108 million available for
follow-on investments. Tis creates a need for more venture
capital frms to locate here and more capital to be raised
by frms already dedicated to investing in the state, in
order for more startup companies to be funded, grown and
permanently located in Michigan.
We’ve also added some new metrics to our annual survey
this year; throughout the 2015 report, we’ll explore:
• Te geographic distribution of venture capital
throughout the state, introducing you to some of the
remarkable synergies that are created in communities
which have promoted venture capital as a critical
component of economic development.
• Not just what our industry contributes, but who is
making the contributions to the growth of venture capital.
In particular, we assess the number of women and
minorities in the industry and are working to establish a
benchmark for future analysis.
• Angel–backed companies, highlighting the signifcant
early-stage contributions angel investors make in some of
Michigan’s most exciting startups. We invite you to take
a closer look at these angel-backed businesses, nominated
by their investors as examples of the promising companies
supported by Michigan’s angel groups.
We’re grateful for the participation and support of our entire
community to make the 2015 MVCA Research Report
an accurate, reliable refection of angel and venture capital
activity in Michigan. As we build on the momentum our
members and Michigan startups create, we vow to keep
Michigan a premier Midwest and national venture capital
center of excellence for many years to come.
All the best,
Maureen Miller Brosnan
Executive Director
MVCA 2015 VENTURE CAPITAL REPORT 4
The Venture Capital
Environment in
MVCA 2015 VENTURE CAPITAL REPORT 5
VENTURE CAPITAL FIRMS
HEADQUARTERED IN MICHIGAN
Apjohn Ventures
Arbor Partners
Arboretum Ventures
Augment Ventures
Beringea, LLC
BioStar Ventures
Cascade Partners
Detroit Innovate*
Detroit Venture Partners
EDF Ventures
First Step Fund
Fontinalis Partners, LLC
Griffon Ventures
Hopen Life Science Ventures
Huron River Ventures
IncWell*
Ludlow Ventures
Michigan Accelerator Fund-I
Michigan eLab
North Coast Technology Investors
Plymouth Ventures
Resonant Venture Partners
RPM Ventures
Start Garden*
TGap Ventures
Wolverine Venture Fund
OUT-OF-STATE VENTURE
CAPITAL FIRMS WITH A
MICHIGAN PRESENCE
Arsenal Venture Partners
Baird Capital
Cultivian Sandbox Ventures
Draper Triangle Ventures*
Early Stage Partners
Flagship Ventures
Fletcher Spaght Ventures
Mercury Fund*
MK Capital
Open Prairie Ventures
Venture Investors
Michigan’s Venture Capital Firms
There are 37 private venture ?rms operating in Michigan. Twenty six are headquartered in Michigan
and an additional 11 are headquartered elsewhere with a Michigan of?ce. There are also two fund
of funds and two corporate venture funds in Michigan. All together, these ?rms employ a total of
130 investment professionals in Michigan.
MICHIGAN-BASED VENTURE
CAPITAL FUND OF FUNDS
Renaissance Venture Capital Fund
Venture Michigan Fund
CORPORATE VENTURE FUNDS
Dow Venture Capital
GM Ventures
*New from prior year
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MVCA 2015 VENTURE CAPITAL REPORT 6
The disparity between the demand for venture capital by
these high potential companies and the supply of capital
available to them in Michigan strongly re?ects the need for
the growth trend of venture capital in Michigan to continue.
Even with evidence of a projected disparity, Michigan has
seen 86% growth in the last ?ve years of total venture capital
under management:
Total venture capital funds under management of ?rms
headquartered in Michigan in 2014 was $1.7 billion,
an increase of 45% in the last ?ve years
• Total venture capital funds under management of
national ?rms with an of?ce in Michigan in 2014 was
$3.1 billion, an increase of 122% in the last ?ve years
Total venture capital available for new investments of
?rms headquartered in Michigan or national ?rms with an
of?ce in Michigan in 2014 was $876 million, an increase of
158% in the last ?ve years. This capital is available for new
investment opportunities across all stages, industry sectors,
and geographical regions.
+
70
%
129
When the capital these startups need is plentiful and
proximate, founders tend to grow the company where it
was “planted.” In Michigan, access to early-stage capital has
been a long-running challenge and, if unaddressed, could
give high-growth businesses a reason to relocate to more
capital-rich markets.
Examining the known demand for future venture capital
investment in Michigan reveals the total demand for capital
is likely much higher than the capital currently available in
the state. Michigan venture capital professionals estimate
that companies in their current portfolio requiring more
capital — the known demand — will approach $1.3 billion
in the next few years. Coupled with the unknown demand,
the total future demand for venture capital exceeds
$1.3 billion.
• There are currently 129 venture-backed companies
in Michigan, a 70% increase in the last ?ve years.
This ?gure doesn’t include startup companies that
are preparing to seek investment or are currently
fundraising.
• Venture capital ?rms in Michigan have an
estimated $108 million reserved for additional
investment into these existing successful
Michigan-based companies.
Venture Capital Environment in Michigan
Michigan’s economic health depends on the existence of a diverse range of active, growing
businesses. The most-promising Michigan companies are often fast-growing technology, life
science, or advanced manufacturing companies that need to scale operations quickly in order to
reach their potential. These companies, in hyper-growth mode and in need of employees, sales
and back-end support, seek capital from early-stage investors in order to realize their potential
as a new driver of economic activity in the state.
Venture-backed startups that fnd success scaling operations
and growing their workforce post-investment often reach
a critical infection point where a new infusion of capital
is required for future growth. This further investment by
existing investors is called Follow-on Funding.
National frms often bring additional out-of-state investors
into Michigan deals, further growing the amount of
capital fowing into Michigan from outside of the state
CAPITAL AVAILABLE FOR
NEW INVESTMENT
2010-2014
Michigan-based
Venture Firms
National Firms with
Michigan Presence
2010 2011 2012 2013 2014
$206.0 $209.0 $305.0 $336.7 $320.5
$134.0
$158.0
$151.0
$201.0
$555.2
$108M
$1.3 BILLION NEED FOR FOLLOW ON INVESTMENT
$727M
out of state need
Historically, 56% of the
funding for a startup
comes from out of state
$573M
in state need
Historically, 44% of the
funding for a startup
comes from in state need
MVCA 2015 VENTURE CAPITAL REPORT 7
3%
Reserved for Follow on Investing
BREAKDOWN OF THE $4.8 BILLION UNDER
MANAGEMENT IN MICHIGAN
23%
Capital Available for
New Startups
Michigan-based
Venture Firms
National Firms with
Michigan Presence
“TRS has had tremendous
support from Michigan
venture ?rms who have
provided substantial funding
used to establish our
company, develop our
technology and successfully
execute our business plan.”
–Jim Fitzsimmons, CEO, Tissue Regeneration Systems
CAPITAL UNDER MANAGEMENT
2001-2014
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$0.5 $1.1 $0.6 $0.8 $0.8 $0.9 $0.9 $1.0 $1.1 $1.2 $1.5 $1.5 $1.6 $1.7
$1.5
$1.6
$1.3
$1.4
$1.5 $2.2
$2.4
$3.1
Out of the total $4.8 billion under management in Michigan,
the majority of the capital has already been deployed into
promising companies, with a small amount reserved for
follow-on investments and a portion available for new
companies seeking venture capital.
74%
Invested in Startups
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MVCA 2015 VENTURE CAPITAL REPORT 8
“Michigan venture capital
?rms have played a signi?cant
role in Larky at every stage
of the company; from initial
concept through customer
acquisition and growth. This has included feedback on
our business concept, introductions to key partners and
prospective clients, funding, and much more.”
–Gregg Hammerman, CEO, Larky
• While Michigan venture
funds invest in a wide
variety of sectors,
the Life Science and
Information Technology
sectors continued to be
the main focus of capital
deployment in Michigan in
2014. Thirty six percent
of the companies that
received venture capital
funding in Michigan in
2014 were life science
companies. Forty four
percent of the companies
that received venture capital
funding in Michigan in 2014 were
Information Technology companies.
89
%
Fifty one companies in Michigan received more
than $204 million from Michigan venture capital
?rms in 2014. This is an 89% increase in the last ?ve years
(and a 247% increase in the last ten years!). There are now
129 venture-backed companies growing and hiring in
Michigan, an increase of 70% in the last ?ve years.
Michigan’s Venture Capital Firms
Support Michigan Businesses
Michigan venture ?rms are a critical factor in Michigan startups success. With Michigan
venture investors backing 97% of all Michigan venture-funded startups, the health of our
state’s entrepreneurial economy hinges on local venture ?rms’ ability to provide capital to our
high-growth potential companies.
4%
Other
6%
Consumer
Products
6%
Advanced Materials
& Manufacturing
2%
Business
Services
(non IT)
2%
Media
44%
Information
Technology
VENTURE CAPITAL INVESTMENT IN MICHIGAN
IN 2014
by Sector
36%
Life Science/
Healthcare
9
%
of the 129 active
venture-backed
companies in Michigan
had CEOs who were
women and 6% had
CEOs who were
minorities.
8
%
of the
51 venture-backed
companies in Michigan
had CEOs who were
women and none had
CEOs who were
minorities.
5%
Other
2%
Consumer Products
1%
Advanced Materials
& Manufacturing
68%
Life Science/
Healthcare
18%
Information
Technology
6%
Media
TOTAL AMOUNT INVESTED IN MICHIGAN
STARTUPS IN 2014
by Sector
MVCA 2015 VENTURE CAPITAL REPORT 9
51
MICHIGAN STARTUPS THAT RECEIVED VENTURE CAPITAL INVESTMENT IN 2014
ADVANCED
MATERIALS &
MANUFACTURING
Detroit Materials
Energetx
Fusion Coolant
BUSINESS SERVICES
(non IT)
Lynx Network
Group, Inc.
CONSUMER
PRODUCTS
American Mountain
Company
Detroit Institute of
Music Education
Turtlecell
INFORMATION
TECHNOLOGY
A2B Bikeshare
AdAdapted
Ampli?nity
Blackbird RSVP
Career Now
Cribspot
Flip Learning, LLC
Larky
Nutshell
OwnThePlay
PrograMax
Reach In?uence
SirionLabs, Inc
Sky Specs
Social Proof
Spirit Shop
Sportsman Tracker
Stratos, Inc.
Tome
UpTo
Varsity News Network
When To Manage
XanEdu Publishing, Inc.
LIFE SCIENCE/
HEALTHCARE
Akadeum
Algal Scienti?c
ArborMetrix
Axonia
CytoPherx
DeNovo Sciences
Diplopia
Great Lakes Caring
HistoSonics
Meditory
Metabolic Solutions
nanoRETE
NeuMoDX
ProNAi
Respondwell
Tissue Regeneration
Systems
Tolera Therapeutics
Vesteron
MEDIA
GSTV
OTHER
FarmLogs
Zipments
$204M
The amount of venture
capital invested in Michigan
startups has increased by
152% in the last 10 years.
2014
$80M
2005
NUMBER OF MICHIGAN STARTUPS RECEIVING
VENTURE CAPITAL INVESTMENT EACH YEAR
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
15
13
19
33
25
27
38
34
40
51
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42%
Follow-On
Investment
58%
Initial
Investment
2014 INVESTMENTS
Venture-backed startups that fnd success scaling operations
and growing their workforce post-investment often reach
a critical infection point where a new infusion of capital
is required for future growth. This further investment by
existing investors is called Follow-on Funding.
MVCA 2015 VENTURE CAPITAL REPORT 10
Michigan venture capital frms invested in 97% of all Michigan startups that received any venture capital in 2014.
51
Michigan
Startups
Received
Venture Capital
Investment
in 2014
$204
Million
Every $1
invested in a Michigan Startup Company
by a Michigan-based Venture Capital Firm
Attracts $2.90
of Investment from Outside
of Michigan
OUT OF STATE
VENTURE CAPITAL FIRMS
Non-Michigan
Institutions
Individuals Other Michigan-based
Fund of Funds
Michigan-based
Institutions
7% 11% 13% 28% 41%
Attracting Capital to Michigan’s Growing Businesses
Michigan’s venture capital community plays a critical role in bringing and leveraging outside
startup and investment capital to Michigan startups. Michigan-based venture capital ?rms are
often the ?rst to identify strong Michigan investment opportunities, and can then provide deal
leadership and connections to potential out-of-state syndicate partners.
MICHIGAN-BASED
VENTURE CAPITAL FIRMS
Getting Michigan’s growing companies the
capital they need
• For every $1 invested by Michigan venture ?rms in a
Michigan company, $2.90 was invested by out-of-state
partners.
• 61% of all startups that received investment in 2014
received investment from more than one investor,
24% of all startups that received investment in
2014 received investment from MORE THAN
ONE Michigan investor.
Attracting out of state capital to Michigan
businesses
• 264 venture capital ?rms from outside
of Michigan have invested in startups in
Michigan. Of all venture capital invested in Michigan
companies last year, a full 65% of all capital invested
came from venture ?rms located outside of Michigan
who were brought into Michigan-based deals by,
in many cases, Michigan venture ?rms. In order to
keep attracting out-of-state investment into Michigan
companies, we need a large and diverse group of
Michigan venture professionals who are well-connected
to the national VC community.
Most early stage, fast-growing companies need more
money than is available to them from one venture frm.
When that happens, Michigan venture frms already
involved with (or interested in) the opportunity will make
connections and advocate for the startup in order to
assemble the additional capital it needs to succeed.
“Our most recent investment
was in a Detroit company,
and it wouldn’t have
happened without an
introduction to the deal
from one Michigan
venture ?rm and the
participation by two others
as co-investors. It’s a great example of Michigan’s
venture capital community using their strong national
network to support a fast-growing local company.”
– Dov Rosenberg, Director, Allos Ventures (Cincinnati, Ohio)
MICHIGAN VENTURE CAPITAL
FINANCING SOURCES
2014
65%
Non-Michigan
VC contribution
to VC ?nancings
35%
Michigan VC’s
contribution to
VC ?nancings
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11 MVCA 2015 VENTURE CAPITAL REPORT
MVCA 2015 VENTURE CAPITAL REPORT 12
Sector
While Michigan venture funds
invest in a variety of sectors,
historically, 53% of early-stage
capital invested in Michigan was
invested in Life Science com-
panies. More speci?cally within
the sector, more than half of that
Life Science investment went to
Pharmaceuticals and Medical
Devices startups.
• There are currently 38
venture backed Life Science
companies located in Michigan
Startups in the Information
Technology sector also
receive a signi?cant amount
of venture capital investment,
Nineteen percent of dollars
invested by Michigan venture
capital ?rms. Of those investments,
Software companies accounted
for 84% of all investments made
in the IT sector.
• There are currently
55 venture backed IT
companies located in Michigan
Michigan’s Diversi?ed Economy
Venture capital investors in Michigan support companies in a wide variety of sectors and stages.
As startup companies grow and thrive, Michigan’s economy becomes increasingly diverse. Having
a full pipeline of businesses at all stages of growth and across many sectors creates a breadth of
opportunities for the people and businesses in Michigan.
2%
Other
1%
Consumer
Products
5%
Advanced Materials
& Manufacturing
7%
Alternative Energy
8%
Business
Services
5%
Media
4%
Biotechnology
8%
Services
8%
Hardware
7%
Healthcare
Services
3%
Animal Health
& Agriculture
19%
Information
Technology
53%
Life Science
SECTOR
DIVERSIFICATION
by dollars invested
LIFE SCIENCE
by dollars invested
34%
Pharmaceuticals
84%
Software
22%
Devices
16%
Diagnostics
14%
Devices
INFORMATION
TECHNOLOGY
by dollars invested
5
%
of these Information
Technology startups
have a CEO who is
a minority.
11
%
of these Information
Technology startups
have a CEO who is a
woman
8
%
of these Life
Science startups
have a CEO who
is a woman.
3
%
of these Life
Science startups
have a CEO who
is a minority.
MVCA 2015 VENTURE CAPITAL REPORT 13
51
%
Venture capital investors invest in startup
companies at various stages of maturity.
Typically, companies need venture capital
from “seed” stage until they grow into the
“mezzanine” stage.
Arboretum Ventures Plymouth Ventures
First Step Fund
Resonant Venture Partners
EDF Ventures
Michigan eLab
Ludlow Ventures
Draper Triangle Ventures
Mercury Fund
Detroit Venture Partners
Huron River Ventures
Wolverine Venture Fund
Detroit Innovate
Michigan Accelerator Fund-1
Augment Ventures
Beringea, LLC
Arbor Partners
Cascade Partners
Hopen Life Science Ventures
Baird Capital
MK Capital
Open Prairie
Fletcher Spaght Ventures
Grifon Ventures
RPM Ventures
Tgap Ventures
Apjohn Ventures
Venture Investors
Start Garden
Early Stage Partners
Flagship Ventures
North Coast Technology Investors
Cultivan Sandbox Ventures
IncWell
Arsenal Venture Partners
Fontinalis Partners, LLC
Seed
Companies in the seed stage
have already put their own
money into their company,
may have angel investment,
and are now looking to raise
venture capital, develop
prototypes, and identify
customers
Startup/Early
The stage where companies
fund activities with the above
types of capital and start to
earn revenues from opera-
tions but is not yet cash fow
positive (with more money
coming in than going out)
Growth/Expansion
The stage where companies
fund activities with the above
types of capital, start to earn
revenues from operations
and is cash fow positive, and
is potentially able to obtain
bank fnancing
Mezzanine
The stage where companies
fund activities with the
above types of capital, earns
revenues from operations,
is cash fow positive, and is
potentially able to obtain bank
fnancing or private debt.
Stage
About half (51%) of the total amount invested by Michigan venture ?rms has
been invested in the early stage of a company’s development, while 30% has
been invested in the growth/expansion stage.
FUNDERS
4%
Mezzanine
30%
Growth
15%
Seed
51%
Early
STAGE DIVERSIFICATION
by dollars invested
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Michigan’s Startup Successes
Ideally, every early-stage investment made by a Michigan venture ?rm would result in a stable,
large company whose identity and employee-base are closely tied to the Michigan community
where it began. In many cases, this has in fact been the result. But this outcome is secondary to
the venture ?rm’s main objective of keeping the startup healthy and able to take advantage of
every opportunity for growth. Sometimes, these opportunities take the startup outside of the
state, but the return on investment always comes back to the Michigan venture ?rm, freeing
capital to invest again in new Michigan-based startups.
An exit is an event that allows a venture capital frm
to realize a return on their investment in a startup
company. An initial public ofering (IPO) or an
acquisition (being bought out by a larger player in the
industry) is an opportunity for further fnancing and
growth for a startup company.
14 MVCA 2015 VENTURE CAPITAL REPORT
A TIMELINE OF MICHIGAN SUCCESSES
2000 Blue Gill Technologies, Genitor Corporation, Genvec
2002 Mechanical Dynamics
2004 Esperion Therapeutics, Healthcare Solutions,
Intralase, Stoneage Corporation, Colorbok
2005 Arbortext, Afmedica
2006 Asterand
2008 HealthMedia, Sircon, Sensicore
2009 HandyLab, Assay Designs, Applimation,
Pump Engineering
2010 Arbor Networks, Mobius Microsystems,
QuatRx Pharmaceuticals
2011 Accuri Cytometers, EcoSynthetix (IPO), Micronics
2012 Arbor Photonics, V.I.O
2013 Esperion (IPO), Livio Radio, Pioneer Surgical
Technology, Relume Technologies
2014 Seelio, ForeSee Results
MVCA 2015 VENTURE CAPITAL REPORT 15
2014 EXITS BY MICHIGAN VENTURE FIRMS
Company Location Sector Michigan Venture Firm(s)
CardioMEMS Atlanta, GA Life Science/ Arboretum
Healthcare
DramaFever New York, NY Media MK Capital
ForeSee Results Ann Arbor, MI Information Not Disclosed
Technology
Image Integration Perrysburg, OH Information Plymouth Ventures
Systems Technology
Luvocracy San Francisco, CA Marketplace RPM Ventures
PODS Westrock Clermont, FL Other Plymouth Ventures
RedPath Integrated Pittsburgh, PA Life Science/ Plymouth Ventures,
Pathology Healthcare Seneca Health Partners
Reverse Medical Irvine, CA Life Science/ Early Stage, BioStar
Healthcare
RideScout Austin, TX Other Huron River Ventures
Seelio Ann Arbor, MI Information First Step Fund
Technology
SilverPop Atlanta, GA Media Wolverine Venture Fund,
Draper Triangle
Simbionix Cleveland, OH Life Science/ Early Stage
Healthcare
Stylecaster NY Information Detroit Venture Partners
Technology
TOA Cleveland, OH Information Early Stage,
Technology Draper Triangle
Xtime Redwood City, CA Other RPM Ventures,
Draper Triangle
ForeSee Results
A pioneer in customer experience
analytics, ForeSee continuously
measures satisfaction across customer
touch points and delivers insights on
where to prioritize improvements for
maximum impact. Using a technology
spun-out from the University of
Michigan, ForeSee made Ann Arbor
its home and has stayed in the city
even after a 2014 acquisition by
Answers.com.
Seelio
Seelio partners with higher education institutions
to create student lifecycle portfolios
™
, which
prepare students for a successful future starting
at orientation all the way through to graduation.
In June, the company was acquired by PlattForm,
a marketing and enrollment management partner
for colleges and universities worldwide. Seelio
expects to add to its 22-person team in Ann Arbor
over the next ?ve years, as the company grows
its partnerships, technology, service, and
design teams.
Exits
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Where will this investment capital come from? The MVCA
survey indicates that 41% of the money in Michigan-based
venture capital funds comes from institutions outside of
Michigan.
As the number of investment-worthy startups in Michigan
grows, so does the level of activity in the venture community.
Demand for venture capital, the number of venture ?rms
active in the state, and the number of investments in and
amount of capital available to Michigan businesses are
metrics we expect to increase alongside growth of the
startup community.
Current funds under management in Michigan will not meet
the known future venture capital demand, so successful
fundraising is critical to the growth of Michigan startups.
Venture ?rms in Michigan must work hard to ?nd the critical
early-stage investment capital our Michigan economy
relies on. Reliable in-state fundraising targets, including
endowments, fund-of-funds, pension plans and founda-
tions, are important players in the long-term health of
Michigan’s entrepreneurial ecosystem and the venture
community that invests in them.
Building on the Momentum:
Future Demand for Venture Capital in Michigan
The 37 venture ?rms in Michigan estimate that their Michigan-based portfolio companies
will need more than $1.3 billion in additional venture capital investment in the near future, as
the companies continue to grow and bring on new employees. Additionally, Michigan-based
venture ?rms are actively investing in new Michigan-based startups which will require continued
support as they grow. In order to encourage and support this extraordinary statewide business
development, Michigan venture ?rms are actively fundraising to meet this demand.
Venture capital frms are a great conduit for bringing
money into the state of Michigan from other states.
Not only do Michigan venture frms raise money from
outside of the state of Michigan but they also work hard
to fnd co-investors for great Michigan startups from
outside of the state of Michigan.
30%
Individuals
44%
Non-Michigan
Institutions
11%
Michigan-based
Fund of Funds
15%
Other
SOURCES OF CAPITAL
FOR MICHIGAN
VENTURE CAPITAL
FUNDS
“Over the past 15 years, a set of
very successful, serial entrepreneurs
has developed in Michigan. This
‘class’ of repeat entrepreneurs means
the growth of exciting new companies
will only accelerate, creating more
demand for early stage capital and
even more top-notch deal ?ow for Michigan VCs.”
– Tim Petersen, Managing Director, Arboretum Ventures.
44%
Non-Michigan
Institutions
DISTRIBUTION OF MICHIGAN
VENTURE CAPITAL FUND SIZES
NUMBER OF VENTURE INVESTMENT
PROFESSIONALS IN MICHIGAN
2007
2008
2009
2010
2011
2012
2013
2014
40
43
48
58
66
71
81
115
2008 2009 2010 2011 2012 2013 2014
21
8
5
3
2
3
6
6
4
2
4
8
6
5
2
4
7
6
6
2
6
9
6
5
2
7
10
8
6
3
6
13
8
5
3
8
22
25
27
29
33
37
$0-$25 Million $26-$50 Million $51-$75 Million $76-$100 Million >$100 Million
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12 FIRMS
were actively raising
$652 million
to invest in new businesses
In 2014
9 FIRMS
will be actively raising
$599 million
to invest in new businesses
In 2015
13 FIRMS
will be actively raising
$676 million
to invest in new businesses
In 2016
Tissue
Regeneration
Systems
Founded in 2008, Tissue
Regeneration Systems,
Inc. (“TRS”) has built a
technology platform
that creates skeletal
and bone implants
using 3-D printing.
The implants are
bioresorbable, porous,
and coated with a
mineral that encourages natural
bone regrowth in patients who
undergo craniomaxillofacial,
orthopedic, or spine fusion surgeries.
Why Michigan?
The TRS technology platform was
originally licensed from the
University of Michigan, which later
provided technical staff as well.
“We continue to work very closely
with our academic founders, so
the Ann Arbor area was a natural
location for our business,” said
TRS CEO and President Jim
Fitzsimmons.
2014 Highlights
TRS closed a $3.25 million bridge
?nancing and established/certi?ed
an independent, GMP-compliant
implant fabrication operation in
Plymouth, Michigan. The company
signed its ?rst major corporate
partnership deal, a collaboration
with Johnson and Johnson
Corporation to co-develop a new
long bone reconstruction implant.
2014 Spotlights
Michigan’s rich entrepreneurial tradition is characterized by
daring founders of young companies acting boldly and
commercializing innovative ideas, and the growth-oriented
businesses of today’s venture-backed community are no
exception. MVCA members provide funding at a crucial point in
the company’s development, when the capital and guidance of
seasoned investors can be invaluable. Although the structure,
size and style varies greatly from deal to deal, all portfolio
companies share the common need for outside capital to keep
the business on a successful trajectory, and the continued good
health of the Michigan venture community ensures there will be
support for these businesses for years to come.
For this report, we’ve chosen to feature a few MVCA member
portfolio companies, representing every stage of development
and at different points on the capital continuum, to showcase
the diverse and ?ourishing population that can be found in our
vibrant Michigan entrepreneurial ecosystem.
Larky
Larky develops mobile-?rst
engagement platforms for banks,
credit unions, health insurers,
universities and employers. Its
mobile apps use location awareness
to notify users when they are near
an offer or discount that they are
entitled to based on their
memberships.
Why Michigan?
CEO Gregg Hammerman says
proximity to talent is what makes
Michigan a good home for his
business. “Michigan is a great
place to ?nd smart, hard-working,
innovative talented people who are
increasingly interested in being a
part of an early stage company and
contributing its success,” he says.
2014 Highlights
North Coast Technology Investors
led a funding round that closed in
May. Since then, Larky has added
more than a dozen enterprise
clients including Lake Trust Credit
Union and Disney, while growing
its staff by eight.
HistoSonics
HistoSonics uses a pulsed sound energy technology called histotripsy to treat
a variety of clinical conditions without incision or heat effects, thereby reducing
patient trauma, improving clinical outcomes and lowering overall cost of care. The
company is advancing its ?rst clinical application in the U.S. and Canada, applying
the Vortx RX® device to the treatment of
Benign Prostatic Hyperplasia (BPH).
Why Michigan?
Histotripsy, the core technology on
which the company is based, started with
an exclusive license of the intellectual
property portfolio from the University
of Michigan, said CEO Chris Gibbons.
“Histotripsy had been developed over
many years of research by an incredible
team of scienti?c and clinical co-inventors
at U-M. We continue to have a strong
relationship with the founding University
team and mutually bene?t from an
ongoing collaboration,” she said.
Michigan is also a state rich in resources,
starting ?rst with a highly skilled workforce, the majority of whom were originally
based in Michigan. We have also bene?ted greatly from a strong, capable supply
base knowledgeable in the requirements of supplying to the medical device industry.
Lastly, locating in Ann Arbor has allowed us to position ourselves in the midst of a
thriving entrepreneurial community with access to investors, other entrepreneurs
and service providers who support them.
2014 Highlights
A key highlight was the completion of enrollment in HIstoSonics’ ?rst-ever clinical
study of its investigational device, the Vortx RX. Final results are pending, but thus
far the device demonstrates an excellent safety pro?le and impressive symptom
improvement. HistoSonics and U-M teams also continue work on future clinical
applications for the technology, including congenital heart defect in infants.
TOME Software
Tome Software develops connectivity
products to keep people mobile
and active, and creates value as a
focused niche within the larger
“Internet of Things” movement.
Why Michigan?
Founder Jake Sigal and his business
partner couldn’t be persuaded to
move to the coasts after they sold
their previous company, Livio, to
Ford in 2013, despite many pleas
to do so. “We
chose to stay in
Michigan for the
access to available
engineers. At
Livio, we started
relationships
with Michigan
State, Michigan,
Lawrence Tech,
and Kettering
for both recent
graduates as well
as hiring alumni that want to return
to Michigan. We have continued the
same process with our new venture,
Tome Software,” Sigal says.
2014 Highlights
In just its ?rst year of operation,
Tome Software was pro?table and
raised $250,000 in convertible debt
from previous Livio investors.
ProNAi
ProNAi Therapeutics is a private
company dedicated to developing
and commercializing a new class of
therapies based on its proprietary
DNAi platform, for patients with
cancer and other diseases. ProNAi’s
lead DNAi drug is PNT2258, which
is speci?cally designed to treat
cancers that overexpress BCL2. To
date, 35 patients have been treated
with PNT2258 in a Phase I and a
pilot Phase II trial, with compelling
ef?cacy and safety results.
Why Michigan?
The company credits the
collaboration among Michigan’s
Life Sciences community,
including its entrepreneurs,
investors, ex-P?zer scientists,
universities, drug development
consultants, legal support, and
state programs/infrastructure,
for providing ProNAi a fertile
environment in which to grow.
Proximity to a global airport hub
has also helped the team introduce
ProNAi’s innovative technologies to
the world.
2014 Highlights
In May 2014, ProNAi raised
approximately $60 million from
new and existing investors. The
oversubscribed Series D round
added to more than $30 million
already raised since the company’s
founding.
ForeSee
Results
A pioneer in customer experience
analytics, ForeSee continuously
measures satisfaction across
customer touch points and delivers
critical insights on where to
prioritize improvements for maximum
impact. ForeSee is a Software as
a Service (SaaS) technology that
connects the customer experience
to the bottom line, resulting in
better business decision-making for
companies and a better experience
for consumers.
Why Michigan?
Using a technology spun-out from
the University of Michigan, ForeSee
naturally made Ann Arbor its ?rst
home. It stayed in the city even as
it grew its workforce to over 300
people because the area supplied
employees with “a hard-working
attitude, high integrity and loyalty,”
recalls founder Larry Freed. Despite
pressures from outside stakeholders
to relocate, Freed says the positive
attributes of Michigan, the support
of the local community and MEDC,
and the company’s continued
success in Ann Arbor gave it
compelling reasons to stay in
Michigan.
2014 Highlights
Integrating the ForeSee solution
with the SaaS platforms of acquirer
Answers.com remained a major
focus in 2014 for the company, as it
continued on its growth trajectory.
ArborMetrix
“Michigan Venture Capital Association continues to demonstrate the important
contributions its programs are making to stimulate economic growth. ArborMetrix
has directly bene?ted from MVCA programs by leveraging their market experience
and outreach, as well as vast networks of strategic partners, which have certainly
accelerated our growth. Every state should have a similar advocate for investing
in local companies that can contribute so much to the business environment.”
— Brett Furst, CEO of ArborMetrix
Founded in 2011 by leading clinical and economic researchers, ArborMetrix
provides a cloud-based platform for performance measurement and clinical
intelligence in acute and specialty healthcare.
Target markets include specialty societies
focused on improving quality and “at-risk”
entities (plans, health systems and ACOs)
that want to identify variation in care while
improving clinical value.
Why Michigan?
ArborMetrix has grown its team by tapping
Michigan’s best and brightest business
minds, statisticians, software intelligence
developers and engineers. The company has
relied on the state’s culture of embracing the
entrepreneurial spirit and passion for taking
ideas from the drawing board to the
marketplace. “There’s tremendous support
and resources for new start-up companies in
Michigan, from the Governor’s of?ce to local business and economic development
sources such as Ann Arbor SPARK,” comments Brett Furst, CEO of ArborMetrix
2014 Highlights
ArborMetrix closed $1.3 million in additional
Series B funding (for a total raise of $9.8 million)
from Michigan investors Renaissance Venture
Capital Fund and Detroit Innovate. It was
honored with several industry awards, including
Frost and Sullivan’s “2014 Best Practices Award”
and Healthcare Informatics’ “Up and Comers
Award”.
Tetra Discovery
Partners
Tetra Discovery Partners designs
drugs to restore clarity of thought in
patients suffering from Alzheimer’s
disease, schizophrenia or traumatic
brain injury. Its novel, ?rst-in-class
therapy for improving learning and
memory will enter human clinical
trials in 2015.
Why Michigan?
According to Mark Gurney, PhD,
Chairman & CEO of Tetra Discovery
Partners, locating
the company in
West Michigan
allows for easy
access to high
quality life science
incubators, an
educated work
force, and access
to ?nancing
appropriate for
start-ups through
a combination of
angel investors, MEDC funds and
venture capital. Additionally, he
says, “Michigan features a high
quality of life, the people are friendly
and housing is affordable.”
2014 Highlights
Tetra raised $2 million from private
investors to leverage $15 million in
funding through the National
Institutes of Health; current
Michigan investors include Grand
Angels, Muskegon Angels, Invest
Michigan, SPARK, and Western
Michigan University’s Biosciences
Research & Commercialization
Center.
2014 2014
2015
CLARE
Advanced Battery Concepts
EAST LANSING
Bene?t
Biophotonic Solutions, Inc.
Gema Diagnostics
Supported Intelligence, LLC
FLINT AREA
Global Energy Innovations Inc
GRAND RAPIDS AREA
Blackbird RSVP
Blue Medora
Empirical Bioscience, LLC
Grand Rapids Aceptic Manufacturing
PrograMax
Pipp Mobile Storage Systems
Ranir
Respondwell
Sequenom Center for
Molecular Medicine
Sportsman Tracker
Tetra Discovery Partners LLC
TransCorp Spine
Varsity News Network
Zipments Corp
GRAWN
Altus Brands, LLC
HARRIETTA
Harrieta Hills Trout Farm
HOLLAND
AlSentis
Conpoto
Creative Byline, Inc.
Energetx Composites
ALLEGAN
Advanced Architectural Products
LANSING
AFID Therapeutics, Inc.
IDV Solutions, LLC
nanoRETE
XG Sciences, Inc
HASLETT
Diplopia
Inventure
Enterprises, Inc.
BRIGHTON
Meditory
LELAND
Michelle’s Miracle, Inc.
MARQUETTE
VIO
MIDLAND
Envy Modular Wall Systems, Inc.
ePaySelect, Inc.
Fulcrum Composites, Inc.
PORT HURON
ParkingCarma, Inc.
LEXINGTON
Huron Inc
SARANAC
Conceivex
SPRING LAKE
American Glass Mosaics
TRAVERSE CITY
CloudAccess.net
Salamander Technologies
Silikids
Tellurex Corporation
JACKSON
Great Lakes Caring
There are currently 129
venture-backed companies
in Michigan, a 70%
increase in the last
?ve years.
Fifty one companies in Michigan
received more than $204 million
from Michigan venture capital ?rms
in 2014. This is an 89% increase in
the last ?ve years.
In 2014, Michigan-based venture
capital ?rms had $1.7B in capital
under management, an increase of
45% in the last 5 years.
The number of venture ?rms
with an of?ce or headquarters
in Michigan has increased by
48% in the last ?ve years.
Michigan VC ?rms invested in
97% of all Michigan startups
that received any venture
capital in 2014.
In 2014 there were 9 Angel
Groups in Michigan with 272
Active Angel Investor Members,
a 45% increase in membership
in the last ?ve years.
There are currently 214 startup companies in
Michigan that have received funding from a Michigan
angel group, a 206% increase in the last ?ve years.
The number of venture
capital investment
professionals living,
working, and investing in
Michigan has increased by
98% in the last ?ve years.
70
%
45
%
48
%
97
%
98
%
OAKLAND COUNTY
365 Retail Markets,
Arbor Plastics Technologies, LLC,
Ardent Cause, AutoBike, Inc.,
BoroPharm, Inc, Carbon Media,
Career Now, Clicktivated Video,
CMS Technologies, Coliant
Corporation, CureLauncher, Emiliem,
Estrakon, Excel Rehabilitation Services,
Firebolt Group, Inc., First Sense Medical,
gloStream, GSTV, iTrack, LLC,
Law Enforcement Intelligent Devices,
LLC, Lipari, Meditory, MyineElectronics,
OwnThePlay, Oxus America, Inc,
Peachworks, RazorThreat, Inc,
Reach In?uence, Relume, RevSpring,
Sentio, LLC, TM3 Systems, Inc. , Ventech,
LLC SherTrack LLC, SirionLabs, Inc.,
Tome, Unitask, Weathershield, LLC
DETROIT AREA
Algal Scienti?c Corporation, American Mountain Co.,
Are You a Human Inc., BEET, LLC, BioSavita, Inc, BoostUp,
Clean Emission Fluids, Inc, Delphinus Medical Technologies,
DeNovo Sciences, Inc., Detroit Institute of Music Education,
Detroit Materials, Eco-Fueling, Inc, ENT Biotech Solutions Inc.,
Fusion Coolant Systems, Inc., FutureNet Group, Inc.,
Ginkgotree, Grand Circus, Greenlancer Energy, IC Data Com,
Intervention Insights, Inc., iRule, LevelEleven, Mitostem, Inc.,
NextCat Inc., ProNai Therapeutics, Quikly, Reach In?uence,
SocialProof, Spider9, Inc., Spirit Shop,
Tissue Regeneration Systems, Unitask, UpTo
DEERFIELD
Limo-Reid, Inc.
KEY FACTS
37 Venture Funds, 2 Corporate VC ?rms, 2 fund of funds
129 Venture-Backed Companies active in MI in 2014
$4.8B Total Capital under Management - $1.7B Total
Capital under Management for ?rms headquartered in
Michigan
51 companies in Michigan received more than $204
million in venture capital funding in 2014
9 Angel Groups in Michigan with 272 Active Angel
investor Members
214 Angel-Backed Companies Active in Michigan in 2014
45
%
206
%
206 206
ANN ARBOR AREA
3D Biomatrix, A2B Bikeshare LLC, Accio Energy, AdAdapted,
Akadeum Life Sciences, AlertWatch, Inc., Ampli?nity,
Arbor Blue, LLC, Arbor Photonics, Inc., Arborlight, LLC,
ArborMetrix, ArborWind, LLC, Atterocor, Inc., Avegant, Biotectix,
LLC, Blaze Medical Devices, LLC, Covaron, Cribspot,
Current Motor Company, CytoPherx, Deep?eld Networks,
Duo Security, Eloquence Communications, Epsilon Imaging,
ERT Systems, LLC, Esperion, FarmLogs, Flock Tag LLC,
FreeStride Therapeutics, Inc., HistoSonics,
InfoReady Corporation, Janeeva, Larky, Inc.,
Life Technologies Corp., LLamasoft, Local Orbit, Lycera,
Mandy & Pandy, Memloom, Molecular Imaging, Inc.,
MyFab5 Inc, NanoBio, Nanocerox, NeuMoDx Molecular,
New Eagle Products, Inc., NextGen Metabolomics, Nutshell,
Nymirum, Inc., OcuSciences, Inc, ONL Therapeutics,
OptoAtmospherics, OWN POS, Phrixus Pharmaceuticals,
Pinnocio, Pixel Velocity, Inc., Portal Architects,
RetroSense Therapeutics, LLC, Reveal Design Automation, Inc.,
Root3, Sakti3, Seelio, Inc., SkySpecs Inc., STKR.it, Inc., Stratos, Inc.,
Swift Biosciences, Tangent Medical Technologies, Inc.,
TECAT Performance Systems, TurtleCell, Volution Capital,
White Pine Systems, LLC, XanEdu Publishing, Inc.,
KALAMAZOO
Ablative Solutions
Armune BioScience
Aursos, Inc.
Axonia Medical
Lynx Network Group, Inc.
Metabolic Solutions Development
Mophie
RealBio Technology Inc.
Tolera
Vestaron Corporation
WHITE PIGEON
Exo
Fiber By-Products
MAP KEY
Venture-Backed
Companies
Angel-Backed
Companies
Both
ANNUAL RESEARCH REPORT
89
%
MVCA 2015 VENTURE CAPITAL REPORT 18
“HistoSonics would not be where it
is today without the strong support from the Michigan
venture community. HistoSonics was launched in late
2009 with the infusion of capital from a syndicate of ?ve
venture funds; four of those funds have ties to Michigan and all
share the vision we have in our technology’s potential to positively impact patient care.
A startup goes through many peaks and valleys in its early years. Our investors have
been there with us, shoulder-to-shoulder, as we addressed challenges head-on, cleared technology hurdles
and built a strong foundation in this platform technology and clinical device for non-invasive therapy.”
– Chris Gibbons, CEO, HistoSonics
Startups in the Ann Arbor Area
• There are currently 44 growing
Ann Arbor companies
that have received more
than $590M in
venture capital funding
• While Michigan
venture funds invest
in a wide variety of
sectors, the Information
Technology and Life Science sectors have been the
main focus of capital deployment in the Ann Arbor
area. Currently, 39% of the companies that received
VC funding in the region were life science companies
and 46% of the companies were Information
Technology companies.
Venture Capital Investment in Ann Arbor
Companies in Business Today
by Sector
MVCA 2015 VENTURE CAPITAL REPORT
Venture Capital in the Ann Arbor Area
• There are currently 20 venture ?rms with
headquarters or of?ces located in Ann Arbor, which
represents 54% of all ?rms with
of?ces in Michigan
• Just 23% of venture capital
managed in Ann
Arbor is
available
for new
investment
Venture Capital
in Ann Arbor
Washtenaw County
Ann Arbor Area
With over half of all Michigan venture ?rms operating in the Ann Arbor area, this home of the
University of Michigan is a hub of entrepreneurial and investment activity. The high concentration
of early-stage capital in the Ann Arbor area has led to increased cooperation among venture ?rms
to ensure startup companies are able to ?ll their funding rounds. Of the 44 venture-backed Ann Arbor
area startups, those in Life Sciences and Information Technology received the bulk of venture capital
investment in 2014.
75%
capital deployed into
startup companies
2%
capital reserved
for additional
investment
into Michigan
startup
companies
23%
capital available
for new startup
companies
11
%
have a CEO
who is a
minority
46%
Information
Technology
2%
Advanced
Materials and
Manufacturing
2%
Consumer
Products
18
%
have a CEO
who is a
woman
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
39%
Life Science/
Healthcare
11%
Life Science/
Healthcare
16
%
of the venture
professionals
located in Ann
Arbor are
women.
24
%
of the venture
professionals
located in Ann
Arbor are
minorities.
MVCA 2015 VENTURE CAPITAL REPORT 19
• In 2014, 19 growing Ann Arbor
companies received more than
$72M in venture capital
funding
• In 2014, in Ann Arbor,
100% of all venture
backed companies that
received investment in
2014 received support
from at least one Michigan venture ?rm.
37% of these venture-backed startups
received support from more than one
Michigan venture capital ?rm which is
an indication that the Ann Arbor area
has a very collaborative entrepreneurial
ecosystem.
• While Michigan venture funds invest in a wide
variety of sectors, the Life Science and Information
Technology sectors continued to be the main focus
of capital deployment in the Ann Arbor area in 2014.
38% of the companies that received VC funding in
this region in 2014 were life science companies.
57% of companies that received VC funding in the
Ann Arbor area in 2014 were Information Technology
companies.
MVCA 2015 VENTURE CAPITAL REPORT 19
Life Science companies typically tend to require more
capital to grow their businesses than other sectors.
Venture Capital Investment in Ann Arbor Area
Startups in 2014
by Sector
Total Amount Invested in Ann Arbor Area
Startups in 2014
by Sector
Venture capital frms typically invest in geographic areas
they can easily travel to or in areas they have strong
co-investors. Michigan venture capital frms have a
strong reputation nationally and frequently utilize
these national ties to attract more money for a
Michigan startup.
Startups in the Ann Arbor Area in 2014
0
%
have a CEO
who is a
minority
5
%
have a CEO
who is a
woman
0%
consumer
products
5%
consumer
products
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
38%
life science/
healthcare
57%
information
technology
64%
life science/
healthcare
36%
information
technology
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Startups in the Detroit Area
• There are currently 24 venture-
backed startups in the
Detroit area who have
collectively received more
than $186M in
venture capital funding
• While Michigan ven-
ture funds invest in a
wide variety of sectors,
the Information Technology sector has historically
been the main focus of capital deployment in the
Detroit area. Currently, 54% of the startup companies
that have received venture capital funding in the
region were information technology companies.
Venture Capital in the Detroit Area
• Over 15 venture capital ?rms in Michigan
have invested in startups in Wayne County
• There are currently 5 venture
?rms with headquarters or
of?ces located in Detroit,
which represents
14% of all ?rms
with of?ces
in Michigan
• Just 31%
of venture
capital
managed in
Detroit is avail-
able for new investment
Wayne County
Detroit Area
The Detroit area is quickly becoming a new center of venture capital activity in Michigan. More remarkable
than the number of new venture investments in Detroit is the rate at which those new investments are
being made: the amount of new venture investments made in Detroit startups doubled in the last ?ve years.
63%
capital deployed into
startup companies
6%
capital reserved
for additional
investment
into Michigan
startup
companies
31%
capital available
for new startup
companies
13
%
have a CEO
who is a
minority
0
%
have a CEO
who is a
woman
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
Venture Capital in the Detroit Area
22
%
of the venture
professionals
located in Detroit
are women.
28
%
of the venture
professionals
located in Detroit
are minorities.
Venture Capital Investment in Detroit Area
Startups in Business Today
by Sector
54%
Information
Technology
8%
Advanced
Materials and
Manufacturing
4%
Consumer
Products
21%
Life Science/
Healthcare
13%
Other
2004
2008
2010
2011
2012
2013
2014
2
1
4
3
5
6
8
Number of New
Detroit Area Startups
Receiving Venture
Investment for the
First Time Each Year
Detroit is quickly becoming a new center of entrepre-
neurial and venture capital activity in Michigan.
The number of Detroit-based
companies receiving venture
capital investment for the ?rst
time has increased 100% in the
last ?ve years. The diversity of startups
receiving venture capital investment in Detroit is even
more striking, as the eight new investments in Detroit
are spread among companies in ?ve different indus-
tries.
MVCA 2015 VENTURE CAPITAL REPORT 21
• In 2014, 12 growing Detroit
area companies received more
than $88M in venture
capital funding
• In 2014, in Detroit,
100% of all venture
backed companies
that received invest-
ment in 2014 received
support from at least one Michigan venture ?rm.
33% of these venture-backed startups
received support from more than one
Michigan venture capital ?rm which is
an indication that the Detroit Area has a
very collaborative entrepreneurial ecosystem.
• While Michigan venture funds invest in a wide vari-
ety of sectors, Information Technology is the main
focus of capital deployment in the Detroit area in
2014. 52% of startups that received venture capital
funding in the Detroit area in 2014 were information
technology companies.
Venture Capital Investment in Detroit Area
Startups in 2014
by Sector
Total Amount Invested in Detroit Area
Startups in 2014
by Sector
2014 Activity in the Detroit Area
8
%
have a CEO
who is a
minority
0
%
have a CEO
who is a
woman
4%
Consumer
Products
9%
consumer
products
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
30%
life science/
healthcare
52%
information
technology
81%
Life Science/
Healthcare
13%
Information
Technology
9%
advanced
materials and
manufacturing
2%
Advanced
Materials and
Manufacturing
“
Detroit has seen
explosive growth in
the last few years
with entrepreneurs setting up shop in downtown
Detroit’s thriving technology hub. Detroit
Venture Partners is thrilled to be a part of that
growth, by investing in many of the early stage
startups who are part of Detroit’s new innovation
economy.“
– Gabe Karp, Partner, Detroit Venture Partners
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Startups in Oakland County
• There are currently 18 venture-backed
startups in Oakland County, half of which have
received an investment from a Michigan venture capital
?rm within the last two years. This spike in activity is
a re?ection of the momentum building in the venture
community and playing out in Oakland County.
• Historically, venture capital investment in Oakland
County has been in three main sectors: Information
Technology, Life Science, and Media. Currently, 67%
of the companies that have received venture capital
funding in the region were Information Technology
startups.
Venture Capital in Oakland County
• There are currently 3 venture ?rms with headquarters
or of?ces located in Oakland County. Historically,
7 Michigan venture ?rms have invested in
Oakland County startups – many of these ?rms have
a strong track record of investing in Oakland County
dating back to the 1990s when there was much
less venture capital available in Michigan. With 37
venture ?rms located in Michigan and dedicated to
investing in great Michigan companies, there is oppor-
tunity for increased investment in Oakland County.
• Of the 7 Michigan-based venture ?rms that have a
strong track record of investing in Oakland County,
72% of their capital has already been deployed,
leaving only 24% to be invested in new startups.
This highlights the importance of continued
fundraising by these ?rms in order to keep up
with the demand by new and existing startups
for venture capital investment.
Oakland County
Oakland County is home to some of Michigan’s longest-tenured venture professionals, whose deep
experience in venture capital helped form and support Michigan’s entrepreneurial community over
several decades. Entrepreneurial companies and their founders like Oakland County’s proximity to a
large potential customer base and its central location in SE Michigan’s economic power region.
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
72%
capital deployed into
startup companies
4%
capital reserved
for additional
investment
into Michigan
startup
companies
24%
capital available
for new startup
companies
Venture Capital in Oakland County
Venture Capital Investment in Oakland County
Startups in Business Today
by Sector
Total Amount Invested
in Oakland County
Startups Historically
by Sector
67%
Information
Technology
5%
Advanced
Materials and
Manufacturing
6%
Business
Services
11%
Life Science/
Healthcare
11%
Media
58%
Information
Technology
1%
Advanced
Materials and
Manufacturing
5%
Life Science/
Healthcare
36%
Media
Oakland County startup
companies in the Media
and Information Technology
sectors secured 94% of
venture capital dollars
invested in the region.
“Attracting the best STEM talent
to our region requires the best companies,
the coolest projects, and dependable
support from local government.
Oakland County has been a great partner
and advocate for tech in the region for our previous
company, Livio (acquired by Ford), and our new business Tome Software.”
– Jake Sigal, CEO, Tome Software
MVCA 2015 VENTURE CAPITAL REPORT 23
• In 2014, 6 growing Oakland
County companies received
more than $19M in
venture capital funding
• In 2014, in Oakland
County, 83% of all
venture backed
companies that
received investment in
2014 received support from a Michigan venture ?rm.
None of these venture-backed startups
received support from more than one
Michigan venture capital ?rm, pointing
to the opportunity for increased
networking and collaboration within the county.
• Information Technology was the main focus of
investment in Oakland County in 2014. 67% of
startups that received venture capital funding
in Oakland County in 2014 were information
technology companies.
Venture Capital Investment in Oakland County
Startups in 2014
by Sector
2014 Activity in Oakland County
0
%
have a CEO
who is a
minority
8
%
have a CEO
who is a
woman
17%
media
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
16%
life science/
healthcare
67%
information
technology
“
In choosing to locate IncWell in
Oakland County, we have placed
ourselves in the midst of an
arsenal of resources that have helped us invest in
27 companies since launching our first fund in 2013.”
Oakland County is also an ideal place for startups.
We are a stone’s throw away from the top automotive, manufacturing, and technology
companies and their vast research and development facilities. The state of Michigan
is also home to some of the finest universities in the country and provides an excellent
technology home base for startups. We are able to utilize these connections to help
the startup companies in our portfolio. “
– Tom LaSorda, Founder & Managing Partner, IncWell
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Startups in West Michigan
• There are currently 24 venture-
backed startups in
West Michigan who have
collectively received
more than $185M
in venture capital
funding.
• Venture capital
investment is
particularly diverse in West Michigan,
with a large variety of sectors receiving investment
by Michigan venture capital ?rms. The Information
Technology and Life Science sectors have histori-
cally been the main focus of capital deployment in
West Michigan; currently, 42% of the startup companies
that have received venture capital funding in the
region were information technology companies and
34% were life science companies.
Venture Capital in West Michigan
• There are currently 6 venture
?rms with headquarters
or of?ces located in West
Michigan, which represents
16% of all ?rms
with of?ces
in Michigan.
• Only
3% of
venture
capital
managed
in West Michigan is available for new
investment, re?ecting the need for additional
fundraising by Michigan venture ?rms to help West
Michigan’s growing companies.
West Michigan
Grand Rapids, Kalamazoo, and surrounding areas
West Michigan’s active angel investors, two large universities (Grand Valley State University and
Western Michigan University), and an entrepreneurial community with a strong dedication to
West Michigan are large contributors to the diverse investment activity in the region. In addition,
six venture ?rms are headquartered or have of?ces in West Michigan, with the highest concentration
of activity in Grand Rapids and Kalamazoo.
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
Venture Capital in West Michigan
Venture Capital Investment in West Michigan
Startups in Business Today
by Sector
34%
Information
Technology
4%
Advanced
Materials and
Manufacturing
6%
Business
Services
(non IT)
42%
Life Science/
Healthcare
8%
Other
8%
Consumer
Products
16
%
of the venture
professionals
located in West
Michigan are
women.
5
%
of the venture
professionals
located in Detroit
are minorities.
94%
capital
deployed
into startup
companies
3%
capital reserved
for additional
investment
into Michigan
startup
companies
3%
capital available
for new startup
companies
13
%
have a CEO
who is a
minority
0
%
have a CEO
who is a
woman
“Organizations like StartGarden, Ann Arbor SPARK,
and Michigan’s network of angel and venture investors
have created an increasingly robust resource infrastructure,
which has been critical to VNN’s continued growth. It’s humbling
to be a part of the amazing growth of this community.”
– Ryan Vaughn, CEO, Varsity News Network
MVCA 2015 VENTURE CAPITAL REPORT 25
• In 2014, 12 growing West
Michigan companies
received more than
$29M in venture
capital funding
• In 2014, in West
Michigan, 92% of
all venture backed
companies that received
investment in 2014 received support from at least
one Michigan venture ?rm.
25% of these venture-backed startups
received support from more than one
Michigan venture capital ?rm.
• Information Technology was the main focus of
investment in West Michigan in 2014. Almost half
(46%) of startups that received venture capital
funding in West Michigan in 2014 were Information
Technology companies. However, the more capital
intensive Life Science startups raised 72% of the
venture funding in 2014.
Venture Capital Investment in West Michigan
Startups in 2014
by Sector
2014 Activity in West Michigan
0
%
have a CEO
who is a
minority
8
%
have a CEO
who is a
woman
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
9%
Advanced Materials
and Manufacturing
9%
Business Services
(non IT)
36%
Life Science/
Healthcare
46%
Information
Technology
Total Amount Invested
in West Michigan Startups
in 2014
by Sector
25%
Information
Technology
1%
Advanced
Materials and
Manufacturing
72%
Life Science/
Healthcare
2%
Business Bervices
(non IT)
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Angel Groups in Michigan
Life Science
Information Technology
Alternative Energy
Advanced Materials
& Manufacturing
Media
Business Services
Consumer Products
Other
8
9
9
8
4
5
7
6
INDUSTRY SECTORS
OF INTEREST
Who are angel investors?
Angel investors are high net worth individuals who
invest in startups. Since angel investors are very often
individuals that have held executive positions at large
corporations or former founders of a successful business,
they can provide valuable advice and introductions to
the entrepreneur, in addition to funding.
What is an angel group?
An angel group (or network) is an organization of
multiple angels who pool capital available to invest in
startups and share information on new investment
opportunities. Angel groups typically meet monthly
in order to view fundraising pitches made by startups.
How much do angel groups invest in startups?
A typical angel group investment into a single company
ranges between $25,000 and $3 million.
There are currently 210 startup
companies in Michigan that
have received funding from a Michigan
angel group, a 200% increase in the
last ?ve years.
In 2014, the nine angel groups
in Michigan were comprised of
257 investors, a 37% increase
in angel participation in the last
?ve years.
Angel investors in Michigan support
companies in a wide variety of sectors.
Having a rich pipeline of angel-backed
startups across many sectors creates
diverse opportunities for later-stage
investment by Michigan
venture ?rms.
Information Technology and Alternative Energy are sectors
of focus for all nine angel groups in Michigan, followed by
Life Science and Advanced Materials and Manufacturing.
In 2014, 18
%
of the startups
who received angel
investment in Michigan
were women.
In 2014, 6
%
of the startups
who received angel
investment in Michigan
were minorities.
200
%
37
%
MVCA 2015 VENTURE CAPITAL REPORT 27
Reveal Design Automation develops
software solutions to guarantee that the
complex, low-power semiconductor systems
critical to consumer products, storage,
networking, automotive, medical, security,
and space applications are functionally
correct and bug-free.
2014 Highlights
Reveal Design Automation leveraged seed
grant and angel investments to take its
fagship product to the market in 2014. That
initial product launch was successful, which
will allow sales revenues to drive company
growth for the next 18 months.
RetroSense Therapeutics is developing
gene therapies to restore vision to people
whose blindness was caused by retinal
degeneration.
2014 Highlights
The company closed a $7 million Series A
fnancing round and secured key intellectual
property from Wayne State University and
Massachusetts General Hospital. It was
selected as a “Top Project to Watch” by
Therapeutic Area Partnerships and received
Orphan Drug designation from USFDA.
Light years beyond the online banner ads
of yesteryear, AdAdapted’s platform brings
ease and scale to integrated advertising and
branded experiences in mobile applications.
From headquarters in Ann Arbor, the company
connects brand advertisers to consumers in
the apps that simplify their lives, including
their favorite grocery lists, organizers and
shopping environments.
2014 Highlights
AdAdapted raised $725,000 in a Seed Round,
with Michigan investors that include BELLE
Michigan and StartGarden, and started
working through agencies with major
national brands like Campbell’s, Bank of
America, and Jimmy Dean.
ANN ARBOR ANGELS
Ann Arbor Angels was founded
in 2004 and has evolved into a
member-driven angel investment
organization, comprised of former
CEOs and founders as well as
business and investment leaders
in the Ann Arbor community. We
invest in young companies with
breakthrough products or services.
In addition to providing capital,
we share our expertise, provide
mentoring, and facilitate connections
to the broader marketplace.
www.annarborangels.org
BELLE
MICHIGAN
Our mission
is to provide
superior returns for our investors
while serving the early stage capital
needs of women-led companies.
The companies we invest in will
have access not only to our capital
but to a network of limited partners,
who bring years of experience as
entrepreneurs, professionals, and
corporate executives to support the
success of our portfolio companies.
www.michbelles.com
BLUEWATER ANGELS
INVESTMENT NETWORK
The BlueWater Angels Investment
Network is a private for-pro?t
organization established to provide
members a signi?cant return on
equity investments. While providing
risk capital to promising businesses,
we recognize the value of supporting
and nurturing the entrepreneurial
community for the economic
bene?t of our region and the State
of Michigan.
www.bluewaterangels.com
BELLE Michigan
focuses on investing
in women owned
businesses in
Michigan!
Featured Angel-Backed Companies in Michigan
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Angel Groups in Michigan, continued
Tetra Discovery Partners designs drugs
to restore clarity of thought in patients
sufering from Alzheimer’s disease,
schizophrenia or traumatic brain injury.
Its novel, frst-in-class therapy for improving
learning and memory will enter human
clinical trials in 2015.
2014 Highlights
Tetra raised $2 million from private
investors to leverage $15 million in funding
through the National Institutes of Health;
current Michigan investors include Grand
Angels, Muskegon Angels, Invest Michigan,
SPARK, and Western Michigan University’s
Biosciences Research & Commercialization
Center.
Blaze Medical Devices develops technology
for analyzing damage to red blood cells
from medical devices/drugs, storage, or
disease. Blaze hopes to ofer initial versions
of its testing systems as a much-awaited
tool in many areas of industrial R&D and
product design as well as basic science and
clinical research.
2014 Highlights
Blaze Medical Devices received a NIH/
NHLBI SBIR Phase 1 grant and secured
international patents and trademarks.
The company is backed by angel investors
and the Michigan Pre-Seed Fund.
GRAND ANGELS
Grand Angels will make investments
that will have a positive effect on
our region through business growth,
job creation, and the retention of
local talent. Through mentoring,
strategic advice, expanding
networks, and connections to
customers, management and
venture capital, Grand Angels
investments fuel the entrepreneurial
economy of innovative companies
throughout Michigan.
www.grandangels.org
GREAT LAKES ANGELS
Great Lakes Angels focuses on
providing funding to capital-
ef?cient early-stage companies
located in Midwest. We are open
to pre-revenue companies that
are close to revenue and can
demonstrate strong potential
customer interest.
www.glangels.org
ONL Therapeutics (ONL) is a
biopharmaceutical company committed
to protecting and improving the vision of
patients with a range of retinal diseases and
conditions. Its breakthrough technology
is designed to protect photoreceptors
against programmed cell death, the root
cause of vision loss and the leading cause of
blindness.
2014 Highlights
ONL closed a $1 million Seed Stage funding
round, including support from Capital
Community Angels, and received $1.5
million in grant funding from National
Eye Institute with Michigan ETF matching
funds. The company appointed several
new executives and was invited to present
at the Ophthalmology Innovation Summit
@ AAO, an event for ophthalmic investors,
entrepreneurs, physicians and pharma
leadership.
CAPITAL COMMUNITY ANGELS
Capital Community Angel Investors
is a nonpro?t organization that
seeks to introduce quali?ed
entrepreneurs to its member
investors. The group looks for
Michigan-based “disruptive”
early stage investments that offer
sustainable competitive advantage.
www.ccangels.org
Angel-Backed Companies in Michigan
MVCA 2015 VENTURE CAPITAL REPORT 29
Combining Italian artistry, craftsmanship
and design with disciplined Midwestern
manufacturing methods, American Glass
Mosaics operates the only full scale formed
glass mosaics factory in the United States.
Its formed mosaics are made with 100%
recycled glass and are manufactured exclu-
sively in West Michigan.
2014 Highlights
American Glass Mosaics, backed by the
Muskegon Angels, began operations in
2014, creating over 700 colors and styles of
mosaics along with its frst two collections.
Additionally, more than 25 distributors, cov-
ering a majority of major U.S. metropolitan
areas plus Great Britain and Canada, carry or
will carry the company’s product line.
Taking plastic utensils of the table and
replacing them with a stylish, afordable
silicone alternative is the aim of Silikids,
founded by two mothers in search of
non-toxic, hypoallergenic tableware
products for kids.
2014 Highlights
Silikids, a winner of several “green” product
awards, debuted its patented Siliskin,
a shock absorbing silicone sleeve used
to cover various glassware and ceramic.
The company closed a $400,000 funding
round and expanded its international and
national distribution.
ECO Fueling provides a fuel injection system
for diesel engines that improves engine
efciency and emissions. The system
increases engine torque and horsepower
through proprietary controls algorithms.
2014 Highlights
After raising most of a $1 million seed
round in 2014, the company is now
pursuing new investors to close the round.
Its successful customer pilot program is
yielding double-digit fuel economy gains,
and a due diligence report on its intellectual
property estate resulted in the submission
of new inventive claims.
MICHIGAN ANGEL FUND
Michigan Angel Fund focuses on
providing funding to capital-ef?cient
early-stage companies located in
Michigan. We work closely with
other stakeholders in the Michigan
entrepreneurial ecosystem to
ensure that we invest in the most
promising companies and to
ensure the future success of these
companies and our investments.
www.miangelfund.com
MUSKEGON ANGELS
The Muskegon Angels is a
member-led organization
committed to ?nding, funding,
and mentoring great young
companies from pitch through a
successful exit. Our priority is job
creation, with a particular emphasis
on Muskegon-area development.
www.muskegonangels.com
NORTHERN MICHIGAN ANGELS
Northern Michigan Angels is a
premier network of successful
entrepreneurs and business leaders
in Northern Michigan who provide
accredited investment capital,
strategic advice, and mentoring to
early-stage companies. The mission
of the network is to help grow the
economic base of the region and to
provide members an outstanding
?nancial return on their time and
invested capital.
www.northernmichiganangels.com
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KATHRYN
CHRISTOPHER,
GRAND VALLEY
STATE UNIVERSITY
Before coming to Grand
Valley, I had a hard time
visualizing my career path.
I knew that I was creative and
good at science and math,
but I wasn’t sure how I might
practically apply those skills and interests in the work world.
Grand Valley allowed me to explore innovation and product
development through classes in the College of Engineering,
and my internal drive helped me to continue working on
these projects even after my classes were complete.
Through this work, I was connected to the The Richard
M. and Helen DeVos Center for Entrepreneurship and
Innovation (CEI) in the Seidman College of Business,
a champion and catalyst for student-entrepreneurs which
provides us with guidance, resources, funding, and, most
importantly, a support system. The bene?ts I received
from my experiences at CEI not only increased my
self-con?dence but they also increased the expectations
I had for myself. I knew that with the knowledge, resources,
and entrepreneurial support system at GVSU, I could
do anything.
I now know exactly what my ideal job is and how to
accomplish my dream of getting there. I have no doubt
that using the education, resources, and encouragement
I received through the entrepreneurial ecosystem at GVSU,
I will be able to successfully develop my own business.
Grand Valley has truly started an innovative spark in Grand
Rapids, and I could not be more thankful to be a part of it.
A rich startup culture is now ?rmly engrained in Michigan, and it hasn’t taken long for that spirit
of innovation and risk-taking to permeate out to Michigan’s universities, where entrepreneurship
is more than a class. Fueled by hackathon weekends, inter-department entrepreneurial
programs and student incubators, Michigan college students can now launch a business or test
the waters of a career in venture investing from within the supportive con?nes of the academic
setting, without sacri?cing their entrepreneurial ambitions for a college degree.
We asked students from ?ve Michigan universities to describe, in their own words, how
the entrepreneurial environment at their university has impacted their studies, personal
expectations, and future career aspirations. These students’ experiences, and those of hundreds
more Michigan students like them, provide a hopeful glimpse into the
promising future of entrepreneurial and venture activity in Michigan:
DAVID KIRCOS,
MICHIGAN STATE
UNIVERSITY
I started my entrepreneurial
journey during my junior year
at Michigan State University,
when I attended an event called Startup Weekend, a transfor-
mative 54-hour whirlwind where entrepreneurs and aspiring
entrepreneurs can ?nd out if startup ideas are viable. There,
I saw my ?rst business pitches, learned about venture capital,
and hacked together a working product in one short weekend.
I didn’t know it at the time, but this event was a tipping point
for me and I would never look at a job the same way again.
I became fascinated by startups,
obsessed with learning what
made them work. The next
summer I became an intern
at Detroit Venture Partners,
an early-stage venture ?rm that
focuses on technology startups.
Looking through the eyes of a
venture capitalist made me view
startups in a new light and gain a new appreciation for the
amount of effort involved in building a new business. The
most valuable part of the internship was being able take
my questions to real VCs. This fed my appetite for business
knowledge much faster then reading blogs or books, and for
the ?rst time I knew what I wanted to do after I graduated.
Two years ago I thought ?nding a ?nd a job at a place like
Google or Wolfram Research was what I wanted. Now I know
I will start my own company within four years of graduation.
Innovative businesses and their founders are driving the
biggest changes in Michigan’s economy and venture capital
is bringing many of those companies to life. I can’t wait to
join their ranks.
3 0 MVCA 2015 VENTURE CAPITAL REPORT
Entrepreneurial Activity Humming
Across Michigan’s Universities
TROY PRILL,
CENTRAL MICHIGAN
UNIVERSITY
I wandered into the Central
Michigan University
entrepreneurship department
as a freshman looking for someone to talk
to about business ideas. Four years later, I
am graduating with a degree in ?nance and
successfully run two startups, thanks to the
support and guidance of the faculty, students
and alumni of CMU.
Central Michigan University has encouraged
me to look at life through a disruptor’s perspective, and to
follow my passions through to business launch by using tools
learned in accounting and management courses, among
others. Every interview I have focuses on my startup businesses
and the opportunities that Central Michigan has given me,
including my experience in programs like the New Venture
Competition (where CMU students from any discipline can
create a business, learn from experts, and earn capital).
I have found my drive and my passion: launching and running a
startup company. At the end of my time here, I am able to look
back and realize how much I have truly grown since the start of
my career as a Chippewa and an entrepreneur.
JAMARR HILL, WAYNE
STATE UNIVERSITY
Before attending WSU,
I assumed entrepreneurship
was for college graduates or the eccentric. Despite growing
up with self-employed parents who showed me the value of
working for yourself, it just didn’t register at the time that
I had the acumen to be an entrepreneur. After leaving the
military, I decided to attend WSU and found Blackstone
Launchpad (BLP), which offers career guidance, resources,
and advice to entrepreneurs, innovators, and inventors at
Wayne State University.
At BLP I was introduced to the ideas of synergy, leverage
and execution. This changed my mentality about what
being an entrepreneur entailed and I decided to start my
own journey in self-employment. My startup, Transwer,
is a mobile application aimed at helping Detroit residents
who depend on public transportation. My app helps people
connect to opportunities and get to their destination, not
unlike how BLP and Wayne State has helped me realize my
entrepreneurial dreams.
MATT ROSS, UNIVERSITY OF MICHIGAN
At my pre-school graduation, when asked what I wanted to be when I grew up, I exclaimed
“A chemist! Or a Ninja Turtle.” Dreams of becoming a giant turtle fell by the wayside, but I did
stay interested in engineering and creating new things.
The ?rst organization I joined at U-M was the Zell Lurie Commercialization Fund, a pre-seed
investment fund established to identify and accelerate the commercialization of ideas
generated within the University community and the surrounding area. As a seed investor on the
technology team, I was given the opportunity to
contact the founder of a business completing
its Series A funding round. I asked him tough questions on behalf of our Fund,
ranging from why they have not made traction with certain strategic partners
to why their cost-per-click rates were what they were. I got the rare chance to
try on the shoes of a venture capitalist and saw I could walk in them. I pivoted
my career search and am now trying to break into the VC world.
During U of M’s annual Design + Business and West Coast Forum trip I was
able to tour Google Ventures and conduct informational interviews with three
venture ?rms. Among them was a startup technology company bridging the
gap between private equity and public investing, a ?rm that has become
a target in my post-graduation job search. Without my experience at Ross
School of Business at U-M, I never would have had the courage to go down
this path. While I may not be on track to be a Ninja Turtle, this Wolverine is
de?nitely on his way to being part of the innovation economy when he “grows up.”
31 MVCA 2015 VENTURE CAPITAL REPORT
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MVCA 2015 VENTURE CAPITAL REPORT 33
Michigan’s Growing Presence in the National Landscape
Since 2010, Michigan has positioned itself as a state of innovation that has created an attractive
environment for entrepreneurs. Relative to the national landscape, from 2010 – 2015, the Michigan
venture capital community has demonstrated strong growth, while the national VC landscape has
slowed or contracted over the same time period.
NATIONAL VENTURE CAPITAL STATISTICS
2010 2011 2012 2013 2014
Number of VC Firms in Existence 853 881 883 874 803
Number of Investment Professionals 6,328 6,231 5,887 5,891 5,680
Total Capital Under Management ($B) $185 $199 $200 $193 $157
Average Venture Capital Under Management
per Firm ($M) $216.5 $226.2 $226.7 $220.7 $194.9
Average Venture Capital Fund Size ($M) $144.5 $149.3 $150.1 $144.9 $129.8
MICHIGAN VENTURE CAPITAL STATISTICS*
2010 2011 2012 2013 2014
Number of VC Firms in Existence 19 20 20 23 26
Number of Investment Professionals 53 60 60 81 102
Total Capital Under Management ($B) $1.2 $1.5 $1.5 $1.6 $1.7
Average Venture Capital Under Management
per Firm ($M) $74 $75 $75 $72 $67
Average Venture Capital Fund Size ($M) $40 $41 $43 $42 $38
FIVE YEAR TRENDS
37%
92%
45%
-5%
-6% -15%
-10%
-10%
Michigan National
Avg. Venture Capital
Fund Size ($M)
# of VC Firms
in Existence
# of Investment
Professionals
Total Capital Under
Management ($B)
Source: National Venture Capital Association
Source: Michigan Venture Capital Association, *This data represents venture ?rms headquartered in Michigan
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Research
Michigan has the highest research spending-to-
venture capital investment ratio in the nation.
For every $1 invested in venture capital in the state, $149 is
invested in research in Michigan. The resulting discoveries
and technology can be commercialized to a much greater
extent than is happening now, creating a fertile ground for
venture capital investment activity.
The Michigan Opportunity
Venture capital activity in Michigan has grown tremendously in the last decade. In 2014, $219
million in venture capital was invested in Michigan startups, a 97% increase in capital invested
compared to the previous year.
Nationally Michigan ranks 21st in venture capital invested and MVCA believes there is additional
investment opportunity based on three key indicators: research spending, number of PhDs in
science and engineering, and the number of invention patents issued.
STATE VC Invested
CA $27,151,513,000
MA $4,678,599,700
NY $4,263,917,000
TX $1,506,448,000
WA $1,246,773,300
IL $1,069,269,700
FL $862,460,900
UT $800,996,600
CO $793,054,800
PA $774,665,400
CT $521,384,800
GA $495,851,800
VA $475,986,300
MN $368,434,800
MD $363,462,400
NC $341,541,500
NJ $320,431,700
OH $268,686,800
AZ $257,026,000
DC $242,247,100
MI $218,983,000
Investment in Research for every
STATE dollar of Venture Capital invested
MI $ 149
MD $ 117
NJ $ 111
OH $ 85
NC $ 57
AZ $ 56
VA $ 53
MN $ 42
PA $ 39
CT $ 35
IL $ 31
DC $ 31
WA $ 30
TX $ 30
GA $ 25
FL $ 21
CO $ 20
UT $ 10
NY $ 9
MA $ 9
CA $ 7
Source for this graph: PricewaterhouseCoopers/National
Venture Capital Association
MoneyTree™ Report, Data:
Thomson Reuters Investments by State 2014
Source for this graph: National Science Foundation/National Center for Science and
Engineering Statistics.
MVCA 2015 VENTURE CAPITAL REPORT 35
Talent
Michigan has the 7th highest number of PhDs in
science and engineering. For every 100,000 Michigan
residents, 13 have PhDs. Not only are these PhDs more likely
to launch a startup company to commercialize their research,
this high proportion of PhDs mean Michigan startups have
abundant access to a talent pool that can advise and advance
the company’s product or service offering.
Ideas
Michigan ranks 6th nationally in the number of
invention patents issued (aka utility patents), making
it one of the most idea-rich states in the nation. Many of
these innovations have commercial applications that lead
to new business creation, fueling an increase in need for
early-stage capital. That demand now greatly surpasses the
amount of venture capital available in Michigan.
# of PhDs for every
STATE 100,000 people
DC 56
MA 30
NY 26
MD 15
CT 14
PA 13
MI 13
UT 13
IL 13
MN 12
CA 12
VA 12
CO 12
NC 11
OH 10
TX 10
GA 9
AZ 9
WA 8
NJ 8
FL 7
# of Utility Patents
STATE (ie. Patents for Invention)
CA 36,193
TX 9,222
NY 8,489
MA 6,409
WA 5,878
MI 5,119
NJ 4,717
IL 4,644
MN 4,292
PA 3,961
FL 3,953
OH 3,689
NC 3,143
CO 2,793
GA 2,505
AZ 2,225
CT 2,168
VA 1,886
MD 1,748
UT 1,228
DC 133
Source for this graph: National Science Foundation/National Center for Science
and Engineering Statistics And U.S. Department of Commerce, Bureau of the Census.
Population Division
Source for this graph: National Science Foundation/National Center for Science
and Engineering Statistics And U.S. Department of Commerce, Bureau of the Census.
Population Division
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MVCA Staff
MAUREEN MILLER BROSNAN
Executive Director, Michigan Venture Capital Association
Maureen has 27 years experience in the non-pro?t sector. As the Executive Director
of the Michigan Venture Capital Association she oversees the organization’s strategy
and direction, and creates awareness of and support for Michigan venture capital
?rms and activity. In addition to her role at MVCA, Maureen is currently president
of the Livonia City Council and has served on the city council for almost 16 years.
She is also chair of the board of directors of St. Mary Mercy Hospital in Livonia,
Mich., and is a member of the executive committee of the Board of Directors of the St. Joseph Mercy Health System.
She is a former member of the Michigan State Transportation Commission where she chaired the audit subcommittee.
She served on the executive team for Governor Jennifer Granholm’s 2002 campaign and as the campaign manager in Judge
Connie Kelley’s statewide race for the Michigan Supreme Court in 2012.
Brosnan is a graduate of Central Michigan University, where she earned a bachelor of applied arts degree in journalism
and public relations.
EMILY HEINTZ
Associate Director, Michigan Venture Capital Association
With a background in economic development, capital markets, and ?nance, Emily
Heintz brings technical and practical expertise to her role as Associate Director
of the Michigan Venture Capital Association. Heintz supports Michigan’s vibrant
venture capital community by developing the MVCA Research Report, planning
educational and networking events, managing talent programs, and advocating for
Michigan’s entrepreneurial community.
Prior to joining the MVCA in 2013, Heintz was a Capital Markets Associate at the
Michigan Economic Development Corporation. She designed, implemented and managed the MEDC’s capital markets
programs, including the 21st Century Investment Fund, Accelerator Funds, Venture Development Fund, EB-5 Immigrant
Investor Program, Urban Investment Program, and direct investments made in venture capital ?rms around the state.
Earlier, Heintz was the Accounting Manager at Ann Arbor SPARK, a non-pro?t economic development organization aimed at
establishing the Ann Arbor region as a destination for business expansion, retention, and location by identifying and meeting
the needs of business at every stage. She also worked as an auditor with Plante Moran, the 13th largest certi?ed public accounting
and business advisory ?rm in the United States offering audit, accounting, tax and business advisory consulting services.
Heintz holds both a Bachelors of Arts and Masters of Science in Accounting from the Michigan State University.
JENNIFER ROMBERG
Communications and Events Manager, Michigan Venture Capital Association
Jennifer Romberg is a graduate of the University of Michigan Ford School of
Public Policy and comes to the Michigan Venture Capital Association with
experience managing political campaigns. As the Communications and Events
Manager of the MVCA, she will carry over her project management skills to
ensure that MVCA events continue to be successful and help the organization
build a stronger investor network in Michigan.
MVCA 2015 Board of Directors
EXECUTIVE COMMITTEE
Chairman
Jim Adox
Managing Director
Venture Investors
Treasurer & Chairman-Elect
Tony Grover
Managing Director
RPM Ventures
Outgoing Chairman
Tim Petersen
Arboretum Ventures
STAFF
Maureen Miller Brosnan
Executive Director
Emily Heintz
Associate Director
Jennifer Romberg
Communications and Events Manager
BOARD OF DIRECTORS
Hugo Braun
North Coast Technology Investors
Mark Horne
Plymouth Ventures
Sara Kruse
Jaffe Raitt Heuer & Weiss
Jon Lauckner
GM Ventures
Jeff Rinvelt
Renaissance Venture Capital Fund
Skip Simms
Ann Arbor SPARK
Paula Sorrell (observer)
Michigan Economic Development
Corporation
Josh Beebe
MK Capital
Patti Glaza
Detroit Innovate
Mark Olesnavage
Hopen Life Sciences Ventures
Ted Serbinski
Techstars
Jody Vanderwel
Grand Angels
Ryan Waddington
Arsenal Ventures
MVCA 2015 VENTURE CAPITAL REPORT 37
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Education and Outreach
The MVCA facilitates the
development of a strong network
within the Michigan venture capital
community and builds connections
with out-of-state angel and venture
investors through targeted meetings and events. MVCA staff
attends local and national industry conferences to advocate
for the Michigan investment community.
• Networking Receptions & Events: The MVCA hosts a
series of networking events around the state focused on
building a stronger investor network within the state.
The most popular of these events each year is the MVCA
Annual Awards Dinner, which highlights venture capital
successes from the prior year. In 2014, a record crowd
recognized several exceptional portfolio companies and
their investors for achievements in fundraising, exit size
and product growth. The evening also honored 2014
MVCA Lifetime Achievement Award Mike Finney, CEO
of the Michigan Economic Development Corporation.
MVCA advocates, builds relationships, and
sponsors programs that further the interests
of its members.
Bucking national trends toward declining venture capital
activity, Michigan has enjoyed consistent, steady growth in
venture capital investment, number of venture capital ?rms,
and numbers of investment professionals. Michigan’s
burgeoning community of entrepreneurs, venture capital
?rms, and angel networks has created an environment ripe
with demand for the programs and services the MVCA
offers. Successful exits have matured founders into serial
entrepreneurs, inspiring
repeat investments and
encouraging sustained
innovation in diverse,
cutting-edge technology
sectors.
Advocacy
Core to the MVCA’s
mission is serving as the
statewide voice for
Michigan’s growing
venture capital industry.
To advance this objective,
the MVCA educates,
advocates and
communicates to
legislators, the media
and the general public on entrepreneurial investment
opportunities, challenges, and successes in Michigan.
An annual legislative outreach day is just one of the many
MVCA advocacy activities.
Michigan Venture Capital Association
CREATING AND SUSTAINING A VIBRANT VENTURE CAPITAL COMMUNITY IN MICHIGAN
The Michigan Venture Capital Association is a catalyst for building a strong, diverse, and
entrepreneurial ecosystem in Michigan.
MVCA represents venture capitalists, angel investors, industry service providers, economic devel-
opment organizations and higher-education institutions – all working together to create new business
opportunities and foster Michigan’s growing role as a center of innovation, entrepreneurship, and
company creation.
MVCA at the 2014 Mackinac
Policy Conference
2014 Outreach Trip
to Washington DC
MVCA Networking Session
2014 MVCA Annual Awards Dinner
• Immersion Days:
Out-of-state investors come to Michigan for an all-day
series of meetings, tours, and social events custom-
designed to meet their informational needs by the
Michigan venture community. Investors obtain ?rst-hand
knowledge of the wealth of resources, partnerships and
entrepreneurial ideas available in the state.
Immersion Days
• Outreach Visits:
Through targeted meetings with out-of-state investors,
MVCA communicates key research report outputs,
opportunities and successes and builds relationships to
be leveraged by Michigan investors. These out-of-state
investors are invited to networking events in Michigan to
increase collaboration with angel and venture investors.
Annual Research Report
MVCA develops and distributes an annual research report,
which is a comprehensive summary of venture capital
investment activities across Michigan. MVCA works with the
National Venture Capital Association, Thomson Reuters and
PricewaterhouseCoopers
to analyze Michigan
activities relative to
national trends. The
research report is the
critical source of
quantitative information
used to drive initiatives
to grow the venture
capital community.
MVCA 2015 VENTURE CAPITAL REPORT 39
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MVCA 2015 VENTURE CAPITAL REPORT 40
ADRIAN FORTINO
“I spent several years as a
venture backed entrepreneur
prior to becoming a Venture
Fellow, so I was very familiar
with the industry. While we’ve
had a successful launch for
Detroit Innovate, I’ve found that
fundraising for a venture fund
can be just as challenging as it
was when I was running my companies.”
Michigan Venture Capital Association
CREATING AND SUSTAINING A VIBRANT VENTURE CAPITAL COMMUNITY IN MICHIGAN
Talent Programs
MVCA offers the Michigan Venture Fellows Program and
the Executive Attraction Program, both funded by the
Michigan Economic Development Corporation.
These programs have
played a critical role in
building Michigan’s
entrepreneurial
ecosystem and help our
members attract the best
talent to their ?rms and
portfolio companies.
• The Michigan
Venture Fellows
Program: This
program is designed
to increase the number of venture professionals in
Michigan, in order to accelerate the fundraising and
deployment of capital into early-stage companies.
Venture Fellows are hired for two years by a Michigan-
based venture ?rm and expected to continue their
careers with the ?rm after the fellowship. Grants for the
program are leveraged against salary contributions from
venture ?rms.
Congratulations Venture Fellow Graduates!
JARED STASIK
“Michigan is home for me,
and the MVCA Venture Fellows
program helped me make the
transition home from California.
I was lucky enough to join Detroit
Venture Partners just as the Fund
was making its frst investments.
I loved the entrepreneurial
environment, and even more so,
I loved that everything we did was directly impacting Detroit.
I’m looking forward to continuing to help Detroit Venture Partners
and our more than 20 startups in every way that I can.”
LINDA CHAMBERLAIN
“The process of venture
investing ofers the honor of
sharing in the big vision of the
entrepreneur, as well as the
practical roadmap on how they
are going to make it happen.
It afords – at least at that frst
pitch! – the time to refrain
from applying objective flters,
applaud the dream, and for me, exercise my inner technology geek
and get excited about the commercial possibilities!”
SAM HOGG
“I learned during my Fellowship
how much the people matter
in this industry. You envision
venture capital as picking
winning ideas, but A teams with
B technologies will outperform
the opposite every time. It
makes you realize that successful
VC frms aren’t necessarily the
ones that have the smartest people, but rather the ones that have
surrounded themselves with networks for success.”
WILLIAM BLAKE III
“Following my fellowship, I have
been aforded the opportunity
to remain with Beringea
and I am looking forward
to continuing to invest and
manage the Michigan Growth
Capital Partners series of funds.
I have enjoyed being a part of
the wonderful culture and work
environment Beringea has developed and am anxious to participate
in Beringea’s promising future.”
MVCA 2015 VENTURE CAPITAL REPORT 41
• The Executive Attraction Program: Entrepreneurial
executives are crucial to supporting the continued growth
of technology-based businesses and jobs in Michigan.
While there is an increasing group of experienced startup
executives located in Michigan, the state lacks a deep
pool of executives with experience leading angel or
venture-backed companies. The MVCA Executive Attraction
Program helps companies recruit high-quality candidates
through a matching grant program designed to increase
the number of portfolio companies in Michigan.
Congratulations to our Newest Executive Attraction
Professional!
DANIEL RATLIFF
“The Fellows program seemed
like a great opportunity to get
involved in the venture capital
community, particularly as a
younger professional. Having
lived in downtown Detroit over
the past few years, I’ve seen a
lot of traction in the startup
community and the growing
number venture investors, particularly in Detroit and Ann Arbor,
and the Fellows program ofered a unique way for a young pro-
fessional like myself to connect with a frm like Fontinalis that was
seeking to add a new member to their investment team to support
the frm’s growth.
SHANE BLIEMASTER
“Nutshell is a cloud-based
Customer Relationship
Management platform that
was started with a small seed
investment, and the team
focused intently on building the
best product. They’ve grown
without any marketing, so being
able to build on that is exciting.
I feel incredibly lucky and excited to have the opportunity to join
such a talented team in Michigan where my skills can contribute to
building something great.”
Welcome New 2014 MVCA Venture Fellows!
KATHRYN GARDNER
“There are many attractive
aspects of venture capital, but
what really hooked me was
the opportunity to help invest
in life-changing technologies.
I believe that the best way to
grow the economy is to build
small businesses and provide
them pathways for success that
otherwise wouldn’t be available to them. I am looking forward to
developing in my role as an analyst and contributing to the venture
capital community in Michigan. “
REDA JABER
“I chose to pursue a career
in healthcare venture capital
because I felt that I could make
a signifcant impact on patient
lives, on a large scale, in this
role. I hoped to be able to build
my career as a venture capital
professional in my home state
of Michigan, and the MVCA
Venture Fellows program allowed me to do that. I’m looking for-
ward to contributing to the stellar team at IncWell where I can help
grow exciting early-stage healthcare startups that have the highest
potential to make a systemic impact on patient care.”
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MVCA 2015 VENTURE CAPITAL REPORT 42
VENTURE CAPITAL FIRMS WITH
HEADQUARTERS IN MICHIGAN
APJOHN VENTURES
350 East Michigan Avenue
Suite 500
Kalamazoo, MI 49007
ARBOR PARTNERS
535 West William Street
Suite 303
Ann Arbor, MI 48103
ARBORETUM VENTURES
303 Detroit Street
Suite 301
Ann Arbor, MI 48104
AUGMENT VENTURES
206 South 4th Avenue
Ann Arbor, MI 48105
BERINGEA, LLC
32330 West 12 Mile Road
Farmington Hills, MI 48334
BIOSTAR VENTURES
560 West Mitchell Street
Suite 500
Petoskey, MI 49770
CASCADE PARTNERS
29100 Northwestern Highway
Suite 405
South?eld, MI 48034
DETROIT INNOVATE
600 Renaissance Center
Suite 1710
Detroit, MI 48243
DETROIT VENTURE PARTNERS
1555 Broadway Street
Detroit, MI 48226
EDF VENTURES
425 North Main Street
Ann Arbor, MI 48104
FIRST STEP FUND
600 Renaissance Center
Suite 1710
Detroit, MI,48243
FONTINALIS PARTNERS, LLC
1 Woodward Avenue
Suite 1600
Detroit, MI 48226
HOPEN LIFE SCIENCE VENTURES
171 Monroe Avenue NW
Grand Rapids, MI 49504
HURON RIVER VENTURES
303 Detroit Street
Suite 100
Ann Arbor, MI 48104
INCWELL
110 Willits Street
Birmingham, MI 48009
LUDLOW VENTURES
1555 Broadway
Detroit, MI 48226
MICHIGAN ACCELERATOR FUND-I
140 Monroe Center NW
Suite 300
Grand Rapids, MI 49503
MICHIGAN ELAB
505 East Liberty Street
LL500
Ann Arbor, MI 48104
NORTH COAST
TECHNOLOGY INVESTORS
206 South Fifth Avenue
Suite 550
Ann Arbor, MI 48104
PLYMOUTH VENTURES
555 Briarwood Circle
Suite 210
Ann Arbor, MI 48108
RESONANT VENTURE PARTNERS
617 Detroit Street
Suite 110
Ann Arbor, MI 48104
RPM VENTURES
320 North Main Street
Suite 400
Ann Arbor, MI 48104
START GARDEN
40 Pearl Street
Grand Rapids, MI 49503
TGAP VENTURES
7171 Stadium Drive
Kalalmazoo, MI 49009
WOLVERINE VENTURE FUND
701 Tappan Street
R3200
Ann Arbor, MI,48104
VENTURE CAPITAL FIRMS WITH
OFFICES IN MICHIGAN
ARSENAL VENTURE PARTNERS
303 Detroit Street
Suite 100
Ann Arbor, MI 48104
MEMBER DIRECTORY
MVCA 2015 VENTURE CAPITAL REPORT 43
BAIRD CAPITAL
425 North Main Street
Ann Arbor, MI 48104
CULTIVIAN SANDBOX
VENTURES
303 Detroit Street
Suite 101
Ann Arbor, MI 48104
DRAPER TRIANGLE VENTURES
303 Detroit Avenue
Suite 100
Ann Arbor, MI 48104
EARLY STAGE PARTNERS
201 South Main Street
Ann Arbor, MI 48104
FLAGSHIP VENTURES
122 South Main Street
Suite 230
Ann Arbor, MI 48104
FLETCHER SPAGHT VENTURES
460 Hillspur Road
Ann Arbor, MI 48105
MERCURY FUND
303 Detroit Street
Suite 100
Ann Arbor, MI 48104
MK CAPITAL
535 West William Street
Suite 303
Pinckney, MI 48103
OPEN PRAIRIE
241 East Michigan Avenue
Kalamazoo, MI 49007
VENTURE INVESTORS
201 South Main Street
Suite 900
Ann Arbor, MI 48104
OUT OF STATE VENTURE
CAPITAL MEMBERS
ALLOS VENTURES
120 East Eighth Street
Fourth Floor
Cincinnati, OH 45202
HYDE PARK VENTURES
225 West Washington Street
Suite 1500
Chicago, IL 60606
NERVEDA, LLC
3888 Quarter Mile Drive
San Diego, GA 92130
RIVER CITIES CAPITAL FUND
221 East Fourth Street
Suite 2400
Cincinnati, OH 45202
5AM VENTURES
Waltham Woods Corporate Center
890 Winter Street
Suite 140
Waltham, MA 02451
CORPORATE VENTURE
DOW VENTURE CAPITAL
1320 Waldo Avenue
Dorinco 100 Building
Midland, MI 48642
GM VENTURES
Mail Code 482-C37-D99
300 Renaissance Center
Detroit, MI 48265
FUND OF FUNDS
GROSVENOR CAPITAL
MANAGEMENT, LP
260 East Brown Street
3rd Floor
Birmingham, MI 48009
RENAISSANCE VENTURE
CAPITAL FUND
201 South Main Street
10th Floor, Ann Arbor, MI 48104
ANGEL GROUPS/NETWORKS
AND PRESEED FUNDS
ANN ARBOR ANGELS
125 South Fifth Avenue
Ann Arbor, MI 48104
www.annarborangels.org
BELLE MICHIGAN
217 Lake Shore Road
Grosse Pointe Farms, MI 48326
313.737.1179
www.michbelles.com
BLUE WATER ANGELS
2007 East Austin Street
Suite M
Midland, MI 48642
989.839.2333
www.bluewaterangels.com
CAPITAL COMMUNITY ANGELS
1881 Ridgewood Drive
East Lansing, MI 48823
517.242.0972
www.ccangels.org
GRAND ANGELS
36 West 8th Street
Suite 200
Holland, MI 49423
616.566.1770
www.grandangels.org
M
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GREAT LAKES ANGELS
568 Woodway Court
Suite 1
Bloom?eld Hills, MI 48302
248.540.3758
www.glangels.org
MICHIGAN ANGEL FUND
201 South Division
Suite 430
Ann Arbor, MI 48104
www.miangelfund.com
MUSKEGON ANGELS
200 Viridian Drive
Muskegon, MI 49440
www.muskegonangels.com
NORTHERN MICHIGAN ANGELS
160 East State Street
Suite 204
Traverse City, MI 49684
231.995.7119
www.northernmichiganangels.com
555 Briarwood Circle, Suite 210, Ann Arbor, 48108
Current Plymouth Ventures II & III Portfolio Companies
Plymouth Ventures is a growth stage venture capital fund that is actively investing
$2 to $6 million in companies throughout the Great Lakes region, with an emphasis
on Michigan. The fund invests in revenue producing companies with the potential
for significant growth through a defined, catalytic event or milestone. With the
successful fundraise for Plymouth Venture Partners III in 2014, Plymouth Ventures
now has over $100 million in committed capital under management.
PRIVATE EQUITY FIRMS
AMHERST FUND
401 East Stadium
Ann Arbor, MI 48104
VALENTI CAPITAL
39400 North Woodward Avenue
Suite 100
Bloom?eld Hills, MI 48304
Let’s talk!
Phone 734-763-0614
Email [email protected]
With over $1 billion invested in U-M startups over the past 10 years
by 30 of the nation’s most successful venture capital ?rms, UM
Tech Transfer is the go-to resource for venture investment deals in
the midwest.
5AM Ventures
Allied Minds
Amherst Fund
Apjohn Ventures
Arboretum Ventures
ARCH Venture Partners
Ardesta
Artiman Ventures
Atlas Ventures
Baird Venture Partners
Beringea
Capital Midwest Fund
Clarus Ventures
Draper Fisher Jurvetson
Early Stage Partners
EDF Ventures
Fidelity Biosciences
First Step Fund
Flagship Ventures
Fletcher Spaght Ventures
Frankel Fund / ZLCF
Frazier Healthcare
Google Ventures
Hatteras Venture
Partners
Huron River Ventures
InterWest Partners
Khosla Ventures
Kleiner Perkins Cau?eld
& Byers
Lerer Ventures
Lightspeed Ventures
Lurie Investments
Mercury Fund
University of Michigan
MINTS
NEA
North Coast Technology
Partners
Northern Light Venture
Capital
ONSET Ventures
Osage University Partners
Plymouth Venture
Partners
Polaris Partners
RPM Ventures
TGap Ventures
Third Rock Ventures
Union Square Venture
Venture Investors
34
ANNIVERSARY
MGCS
MICHIGAN GROWTH
CAPITAL SYMPOSIUM
www.MichiganGCS.com
ZELL LURIE INSTITUTE
FOR ENTREPRENEURIAL STUDIES
CENTER FOR VENTURE CAPITAL
& PRIVATE EQUITY FINANCE
The MGCS is the State’s largest and most highly sought after venture capital
event. It is hosted by the University of Michigan with support from the
Michigan Venture Capital Association. This year marks the 34th edition
of the MGCS. Thank you for making it a success!
330 E. Liberty, Suite 3C
Ann Arbor, MI 48104
Phone 734.585.0324
www.michiganvca.org
doc_300225827.pdf
On this criteria with regards to our investment in a strong entrepreneurial environment.
2014
2015
ANNUAL RESEARCH REPORT
Growing Businesses
in
Michigan
MICHIGAN VENTURE CAPITAL
Full Spectrum Thinking. Full Service Execution.
Clark Hill attorneys and professionals address the challenges our clients face by advising them on
growth strategies, investment strategies, intellectual property protection, regulatory compliance,
human capital management, and strategic alliances. Clark Hill can help you meet the business
challenges of today and tomorrow.
clarkhill.com
When it comes to growing business,
we’re all in.
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EVERYTHING VENTURED, EVERYTHING GAINED.
GM Ventures is proud to support the Michigan
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Table of Contents
Venture Capital in Michigan
Michigan’s Venture Capital Firms . . . . . . . . . . . . . . . 5
Overview of the Venture Capital
Environment in Michigan . . . . . . . . . . . . . . . . . . . . 6
Michigan’s Venture Capital Firms
Support Michigan Businesses . . . . . . . . . . . . . . . . 8
Attracting Capital to Michigan’s
Growing Businesses . . . . . . . . . . . . . . . . . . . . . . . .10
Michigan’s Diversi?ed Economy . . . . . . . . . . . . . . .12
Michigan’s Startup Successes . . . . . . . . . . . . . . . . . .14
Building on the Momentum:
Future Demand for Venture
Capital in Michigan . . . . . . . . . . . . . . . . . . . . . . . . .16
Regional Activity
Washtenaw County – Ann Arbor . . . . . . . . . . . . . . .18
Wayne County – Detroit . . . . . . . . . . . . . . . . . . . . . . .20
Oakland County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
West Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
SOUTHFIELD • DETROIT • ANN ARBOR • NAPLES
www.jaffelaw.com
Choosing the
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Jaffe’s attorneys regularly and expertly
negotiate and structure mergers, stock and
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Activity Map and Company Spotlights . . . . Center
Angel Capital in Michigan
Angel Groups in Michigan . . . . . . . . . . . . . . . . . . . . .26
Feature: Entrepreneurial Activity
Humming Across Michigan’s Universities . . . . . . 30
National Landscape
Michigan’s Growing Presence
in the National Landscape . . . . . . . . . . . . . . . . . . . . .33
The Michigan Opportunity . . . . . . . . . . . . . . . . . . . .34
Michigan Venture Capital Association
MVCA Board and Staff . . . . . . . . . . . . . . . . . . . . . . . . .36
About MVCA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Member Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
© 2015 Michigan Venture Capital Association. This report may be copied and
distributed so long as the report is not altered and fees are not charged to the
recipients of such 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 Capital Association is identifed as the source of the content and
owner of copyright. All other rights are reserved.
MVCA 2015 VENTURE CAPITAL REPORT 2
Dear Friends
Michigan is proud to be the Comeback State, and a large
part of our ongoing reinvention is credited to our investment
in a strong entrepreneurial environment. We have worked
hard to build one of the most complete support systems in
the country.
At the center of Michigan’s support for innovators looking
to launch and grow new business ventures in Michigan is an
active and thriving venture capital community driven by the
Michigan Venture Capital Association and its members.
Venture capital frms and angel investors continue to invest
in startups, not only bringing capital, but also sharing their
expertise in launching successful businesses with companies
that are expanding Michigan’s economic base.
Te role of venture capitalists in Michigan’s entrepreneurial
economy is critical to our state’s long-term economic
success. As startups continue to grow, we are retaining more
young talent, creating a better business environment, and
expanding opportunities for Michiganders to live, work and
raise a family in our state for generations to come.
Your eforts to invest in our state’s future and promote all
the exciting things happening in Michigan are greatly
appreciated. Tanks in part to your support, entrepreneurs
and investors from across the country and throughout the
globe are choosing to do business right here in Michigan.
On behalf of the state of Michigan, thank you to the
Michigan Venture Capital Association for your leadership
in helping to reinvent our state, grow new businesses, and
create more and better jobs.
Sincerely,
Rick Snyder
Governor
MVCA 2015 VENTURE CAPITAL REPORT 3
Dear Readers
We are pleased to present the 2015 MVCA Annual
Research Report, which refects a growing and vibrant angel
and venture capital community in Michigan. Michigan’s
entrepreneurial ecosystem continues to build momentum and
has been integral to the state’s long-term economic recovery.
Tanks to the diligent participation of Michigan’s venture
capital frms and angel investors, our report is able to
present an accurate look at our industry and its contribution
to Michigan’s economy. Tere are currently 129 venture-
backed companies in Michigan, a 70% increase over fve
years ago. Michigan venture frms actively support the
state’s fastest growing young companies, with local investors
involved in 97% of all startup funding rounds in 2014. Add
to that an almost doubling of the number of venture capital
professionals living, working and investing in Michigan and
45% growth in the number of investors in angel groups,
and it’s easy to see how vital the venture capital and angel
community is to creating long-term viability for a robust
entrepreneurial ecosystem in our state.
As we analyze the past year, we do so knowing that the
demand for venture capital funding is growing in Michigan.
MVCA’s survey of venture capital investors in Michigan
found that their Michigan-based portfolio companies will
require at least $1.3 billion over the next few years, from
frms that have approximately $108 million available for
follow-on investments. Tis creates a need for more venture
capital frms to locate here and more capital to be raised
by frms already dedicated to investing in the state, in
order for more startup companies to be funded, grown and
permanently located in Michigan.
We’ve also added some new metrics to our annual survey
this year; throughout the 2015 report, we’ll explore:
• Te geographic distribution of venture capital
throughout the state, introducing you to some of the
remarkable synergies that are created in communities
which have promoted venture capital as a critical
component of economic development.
• Not just what our industry contributes, but who is
making the contributions to the growth of venture capital.
In particular, we assess the number of women and
minorities in the industry and are working to establish a
benchmark for future analysis.
• Angel–backed companies, highlighting the signifcant
early-stage contributions angel investors make in some of
Michigan’s most exciting startups. We invite you to take
a closer look at these angel-backed businesses, nominated
by their investors as examples of the promising companies
supported by Michigan’s angel groups.
We’re grateful for the participation and support of our entire
community to make the 2015 MVCA Research Report
an accurate, reliable refection of angel and venture capital
activity in Michigan. As we build on the momentum our
members and Michigan startups create, we vow to keep
Michigan a premier Midwest and national venture capital
center of excellence for many years to come.
All the best,
Maureen Miller Brosnan
Executive Director
MVCA 2015 VENTURE CAPITAL REPORT 4
The Venture Capital
Environment in
MVCA 2015 VENTURE CAPITAL REPORT 5
VENTURE CAPITAL FIRMS
HEADQUARTERED IN MICHIGAN
Apjohn Ventures
Arbor Partners
Arboretum Ventures
Augment Ventures
Beringea, LLC
BioStar Ventures
Cascade Partners
Detroit Innovate*
Detroit Venture Partners
EDF Ventures
First Step Fund
Fontinalis Partners, LLC
Griffon Ventures
Hopen Life Science Ventures
Huron River Ventures
IncWell*
Ludlow Ventures
Michigan Accelerator Fund-I
Michigan eLab
North Coast Technology Investors
Plymouth Ventures
Resonant Venture Partners
RPM Ventures
Start Garden*
TGap Ventures
Wolverine Venture Fund
OUT-OF-STATE VENTURE
CAPITAL FIRMS WITH A
MICHIGAN PRESENCE
Arsenal Venture Partners
Baird Capital
Cultivian Sandbox Ventures
Draper Triangle Ventures*
Early Stage Partners
Flagship Ventures
Fletcher Spaght Ventures
Mercury Fund*
MK Capital
Open Prairie Ventures
Venture Investors
Michigan’s Venture Capital Firms
There are 37 private venture ?rms operating in Michigan. Twenty six are headquartered in Michigan
and an additional 11 are headquartered elsewhere with a Michigan of?ce. There are also two fund
of funds and two corporate venture funds in Michigan. All together, these ?rms employ a total of
130 investment professionals in Michigan.
MICHIGAN-BASED VENTURE
CAPITAL FUND OF FUNDS
Renaissance Venture Capital Fund
Venture Michigan Fund
CORPORATE VENTURE FUNDS
Dow Venture Capital
GM Ventures
*New from prior year
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MVCA 2015 VENTURE CAPITAL REPORT 6
The disparity between the demand for venture capital by
these high potential companies and the supply of capital
available to them in Michigan strongly re?ects the need for
the growth trend of venture capital in Michigan to continue.
Even with evidence of a projected disparity, Michigan has
seen 86% growth in the last ?ve years of total venture capital
under management:
Total venture capital funds under management of ?rms
headquartered in Michigan in 2014 was $1.7 billion,
an increase of 45% in the last ?ve years
• Total venture capital funds under management of
national ?rms with an of?ce in Michigan in 2014 was
$3.1 billion, an increase of 122% in the last ?ve years
Total venture capital available for new investments of
?rms headquartered in Michigan or national ?rms with an
of?ce in Michigan in 2014 was $876 million, an increase of
158% in the last ?ve years. This capital is available for new
investment opportunities across all stages, industry sectors,
and geographical regions.
+
70
%
129
When the capital these startups need is plentiful and
proximate, founders tend to grow the company where it
was “planted.” In Michigan, access to early-stage capital has
been a long-running challenge and, if unaddressed, could
give high-growth businesses a reason to relocate to more
capital-rich markets.
Examining the known demand for future venture capital
investment in Michigan reveals the total demand for capital
is likely much higher than the capital currently available in
the state. Michigan venture capital professionals estimate
that companies in their current portfolio requiring more
capital — the known demand — will approach $1.3 billion
in the next few years. Coupled with the unknown demand,
the total future demand for venture capital exceeds
$1.3 billion.
• There are currently 129 venture-backed companies
in Michigan, a 70% increase in the last ?ve years.
This ?gure doesn’t include startup companies that
are preparing to seek investment or are currently
fundraising.
• Venture capital ?rms in Michigan have an
estimated $108 million reserved for additional
investment into these existing successful
Michigan-based companies.
Venture Capital Environment in Michigan
Michigan’s economic health depends on the existence of a diverse range of active, growing
businesses. The most-promising Michigan companies are often fast-growing technology, life
science, or advanced manufacturing companies that need to scale operations quickly in order to
reach their potential. These companies, in hyper-growth mode and in need of employees, sales
and back-end support, seek capital from early-stage investors in order to realize their potential
as a new driver of economic activity in the state.
Venture-backed startups that fnd success scaling operations
and growing their workforce post-investment often reach
a critical infection point where a new infusion of capital
is required for future growth. This further investment by
existing investors is called Follow-on Funding.
National frms often bring additional out-of-state investors
into Michigan deals, further growing the amount of
capital fowing into Michigan from outside of the state
CAPITAL AVAILABLE FOR
NEW INVESTMENT
2010-2014
Michigan-based
Venture Firms
National Firms with
Michigan Presence
2010 2011 2012 2013 2014
$206.0 $209.0 $305.0 $336.7 $320.5
$134.0
$158.0
$151.0
$201.0
$555.2
$108M
$1.3 BILLION NEED FOR FOLLOW ON INVESTMENT
$727M
out of state need
Historically, 56% of the
funding for a startup
comes from out of state
$573M
in state need
Historically, 44% of the
funding for a startup
comes from in state need
MVCA 2015 VENTURE CAPITAL REPORT 7
3%
Reserved for Follow on Investing
BREAKDOWN OF THE $4.8 BILLION UNDER
MANAGEMENT IN MICHIGAN
23%
Capital Available for
New Startups
Michigan-based
Venture Firms
National Firms with
Michigan Presence
“TRS has had tremendous
support from Michigan
venture ?rms who have
provided substantial funding
used to establish our
company, develop our
technology and successfully
execute our business plan.”
–Jim Fitzsimmons, CEO, Tissue Regeneration Systems
CAPITAL UNDER MANAGEMENT
2001-2014
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$0.5 $1.1 $0.6 $0.8 $0.8 $0.9 $0.9 $1.0 $1.1 $1.2 $1.5 $1.5 $1.6 $1.7
$1.5
$1.6
$1.3
$1.4
$1.5 $2.2
$2.4
$3.1
Out of the total $4.8 billion under management in Michigan,
the majority of the capital has already been deployed into
promising companies, with a small amount reserved for
follow-on investments and a portion available for new
companies seeking venture capital.
74%
Invested in Startups
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MVCA 2015 VENTURE CAPITAL REPORT 8
“Michigan venture capital
?rms have played a signi?cant
role in Larky at every stage
of the company; from initial
concept through customer
acquisition and growth. This has included feedback on
our business concept, introductions to key partners and
prospective clients, funding, and much more.”
–Gregg Hammerman, CEO, Larky
• While Michigan venture
funds invest in a wide
variety of sectors,
the Life Science and
Information Technology
sectors continued to be
the main focus of capital
deployment in Michigan in
2014. Thirty six percent
of the companies that
received venture capital
funding in Michigan in
2014 were life science
companies. Forty four
percent of the companies
that received venture capital
funding in Michigan in 2014 were
Information Technology companies.
89
%
Fifty one companies in Michigan received more
than $204 million from Michigan venture capital
?rms in 2014. This is an 89% increase in the last ?ve years
(and a 247% increase in the last ten years!). There are now
129 venture-backed companies growing and hiring in
Michigan, an increase of 70% in the last ?ve years.
Michigan’s Venture Capital Firms
Support Michigan Businesses
Michigan venture ?rms are a critical factor in Michigan startups success. With Michigan
venture investors backing 97% of all Michigan venture-funded startups, the health of our
state’s entrepreneurial economy hinges on local venture ?rms’ ability to provide capital to our
high-growth potential companies.
4%
Other
6%
Consumer
Products
6%
Advanced Materials
& Manufacturing
2%
Business
Services
(non IT)
2%
Media
44%
Information
Technology
VENTURE CAPITAL INVESTMENT IN MICHIGAN
IN 2014
by Sector
36%
Life Science/
Healthcare
9
%
of the 129 active
venture-backed
companies in Michigan
had CEOs who were
women and 6% had
CEOs who were
minorities.
8
%
of the
51 venture-backed
companies in Michigan
had CEOs who were
women and none had
CEOs who were
minorities.
5%
Other
2%
Consumer Products
1%
Advanced Materials
& Manufacturing
68%
Life Science/
Healthcare
18%
Information
Technology
6%
Media
TOTAL AMOUNT INVESTED IN MICHIGAN
STARTUPS IN 2014
by Sector
MVCA 2015 VENTURE CAPITAL REPORT 9
51
MICHIGAN STARTUPS THAT RECEIVED VENTURE CAPITAL INVESTMENT IN 2014
ADVANCED
MATERIALS &
MANUFACTURING
Detroit Materials
Energetx
Fusion Coolant
BUSINESS SERVICES
(non IT)
Lynx Network
Group, Inc.
CONSUMER
PRODUCTS
American Mountain
Company
Detroit Institute of
Music Education
Turtlecell
INFORMATION
TECHNOLOGY
A2B Bikeshare
AdAdapted
Ampli?nity
Blackbird RSVP
Career Now
Cribspot
Flip Learning, LLC
Larky
Nutshell
OwnThePlay
PrograMax
Reach In?uence
SirionLabs, Inc
Sky Specs
Social Proof
Spirit Shop
Sportsman Tracker
Stratos, Inc.
Tome
UpTo
Varsity News Network
When To Manage
XanEdu Publishing, Inc.
LIFE SCIENCE/
HEALTHCARE
Akadeum
Algal Scienti?c
ArborMetrix
Axonia
CytoPherx
DeNovo Sciences
Diplopia
Great Lakes Caring
HistoSonics
Meditory
Metabolic Solutions
nanoRETE
NeuMoDX
ProNAi
Respondwell
Tissue Regeneration
Systems
Tolera Therapeutics
Vesteron
MEDIA
GSTV
OTHER
FarmLogs
Zipments
$204M
The amount of venture
capital invested in Michigan
startups has increased by
152% in the last 10 years.
2014
$80M
2005
NUMBER OF MICHIGAN STARTUPS RECEIVING
VENTURE CAPITAL INVESTMENT EACH YEAR
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
15
13
19
33
25
27
38
34
40
51
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42%
Follow-On
Investment
58%
Initial
Investment
2014 INVESTMENTS
Venture-backed startups that fnd success scaling operations
and growing their workforce post-investment often reach
a critical infection point where a new infusion of capital
is required for future growth. This further investment by
existing investors is called Follow-on Funding.
MVCA 2015 VENTURE CAPITAL REPORT 10
Michigan venture capital frms invested in 97% of all Michigan startups that received any venture capital in 2014.
51
Michigan
Startups
Received
Venture Capital
Investment
in 2014
$204
Million
Every $1
invested in a Michigan Startup Company
by a Michigan-based Venture Capital Firm
Attracts $2.90
of Investment from Outside
of Michigan
OUT OF STATE
VENTURE CAPITAL FIRMS
Non-Michigan
Institutions
Individuals Other Michigan-based
Fund of Funds
Michigan-based
Institutions
7% 11% 13% 28% 41%
Attracting Capital to Michigan’s Growing Businesses
Michigan’s venture capital community plays a critical role in bringing and leveraging outside
startup and investment capital to Michigan startups. Michigan-based venture capital ?rms are
often the ?rst to identify strong Michigan investment opportunities, and can then provide deal
leadership and connections to potential out-of-state syndicate partners.
MICHIGAN-BASED
VENTURE CAPITAL FIRMS
Getting Michigan’s growing companies the
capital they need
• For every $1 invested by Michigan venture ?rms in a
Michigan company, $2.90 was invested by out-of-state
partners.
• 61% of all startups that received investment in 2014
received investment from more than one investor,
24% of all startups that received investment in
2014 received investment from MORE THAN
ONE Michigan investor.
Attracting out of state capital to Michigan
businesses
• 264 venture capital ?rms from outside
of Michigan have invested in startups in
Michigan. Of all venture capital invested in Michigan
companies last year, a full 65% of all capital invested
came from venture ?rms located outside of Michigan
who were brought into Michigan-based deals by,
in many cases, Michigan venture ?rms. In order to
keep attracting out-of-state investment into Michigan
companies, we need a large and diverse group of
Michigan venture professionals who are well-connected
to the national VC community.
Most early stage, fast-growing companies need more
money than is available to them from one venture frm.
When that happens, Michigan venture frms already
involved with (or interested in) the opportunity will make
connections and advocate for the startup in order to
assemble the additional capital it needs to succeed.
“Our most recent investment
was in a Detroit company,
and it wouldn’t have
happened without an
introduction to the deal
from one Michigan
venture ?rm and the
participation by two others
as co-investors. It’s a great example of Michigan’s
venture capital community using their strong national
network to support a fast-growing local company.”
– Dov Rosenberg, Director, Allos Ventures (Cincinnati, Ohio)
MICHIGAN VENTURE CAPITAL
FINANCING SOURCES
2014
65%
Non-Michigan
VC contribution
to VC ?nancings
35%
Michigan VC’s
contribution to
VC ?nancings
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MVCA 2015 VENTURE CAPITAL REPORT 12
Sector
While Michigan venture funds
invest in a variety of sectors,
historically, 53% of early-stage
capital invested in Michigan was
invested in Life Science com-
panies. More speci?cally within
the sector, more than half of that
Life Science investment went to
Pharmaceuticals and Medical
Devices startups.
• There are currently 38
venture backed Life Science
companies located in Michigan
Startups in the Information
Technology sector also
receive a signi?cant amount
of venture capital investment,
Nineteen percent of dollars
invested by Michigan venture
capital ?rms. Of those investments,
Software companies accounted
for 84% of all investments made
in the IT sector.
• There are currently
55 venture backed IT
companies located in Michigan
Michigan’s Diversi?ed Economy
Venture capital investors in Michigan support companies in a wide variety of sectors and stages.
As startup companies grow and thrive, Michigan’s economy becomes increasingly diverse. Having
a full pipeline of businesses at all stages of growth and across many sectors creates a breadth of
opportunities for the people and businesses in Michigan.
2%
Other
1%
Consumer
Products
5%
Advanced Materials
& Manufacturing
7%
Alternative Energy
8%
Business
Services
5%
Media
4%
Biotechnology
8%
Services
8%
Hardware
7%
Healthcare
Services
3%
Animal Health
& Agriculture
19%
Information
Technology
53%
Life Science
SECTOR
DIVERSIFICATION
by dollars invested
LIFE SCIENCE
by dollars invested
34%
Pharmaceuticals
84%
Software
22%
Devices
16%
Diagnostics
14%
Devices
INFORMATION
TECHNOLOGY
by dollars invested
5
%
of these Information
Technology startups
have a CEO who is
a minority.
11
%
of these Information
Technology startups
have a CEO who is a
woman
8
%
of these Life
Science startups
have a CEO who
is a woman.
3
%
of these Life
Science startups
have a CEO who
is a minority.
MVCA 2015 VENTURE CAPITAL REPORT 13
51
%
Venture capital investors invest in startup
companies at various stages of maturity.
Typically, companies need venture capital
from “seed” stage until they grow into the
“mezzanine” stage.
Arboretum Ventures Plymouth Ventures
First Step Fund
Resonant Venture Partners
EDF Ventures
Michigan eLab
Ludlow Ventures
Draper Triangle Ventures
Mercury Fund
Detroit Venture Partners
Huron River Ventures
Wolverine Venture Fund
Detroit Innovate
Michigan Accelerator Fund-1
Augment Ventures
Beringea, LLC
Arbor Partners
Cascade Partners
Hopen Life Science Ventures
Baird Capital
MK Capital
Open Prairie
Fletcher Spaght Ventures
Grifon Ventures
RPM Ventures
Tgap Ventures
Apjohn Ventures
Venture Investors
Start Garden
Early Stage Partners
Flagship Ventures
North Coast Technology Investors
Cultivan Sandbox Ventures
IncWell
Arsenal Venture Partners
Fontinalis Partners, LLC
Seed
Companies in the seed stage
have already put their own
money into their company,
may have angel investment,
and are now looking to raise
venture capital, develop
prototypes, and identify
customers
Startup/Early
The stage where companies
fund activities with the above
types of capital and start to
earn revenues from opera-
tions but is not yet cash fow
positive (with more money
coming in than going out)
Growth/Expansion
The stage where companies
fund activities with the above
types of capital, start to earn
revenues from operations
and is cash fow positive, and
is potentially able to obtain
bank fnancing
Mezzanine
The stage where companies
fund activities with the
above types of capital, earns
revenues from operations,
is cash fow positive, and is
potentially able to obtain bank
fnancing or private debt.
Stage
About half (51%) of the total amount invested by Michigan venture ?rms has
been invested in the early stage of a company’s development, while 30% has
been invested in the growth/expansion stage.
FUNDERS
4%
Mezzanine
30%
Growth
15%
Seed
51%
Early
STAGE DIVERSIFICATION
by dollars invested
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Michigan’s Startup Successes
Ideally, every early-stage investment made by a Michigan venture ?rm would result in a stable,
large company whose identity and employee-base are closely tied to the Michigan community
where it began. In many cases, this has in fact been the result. But this outcome is secondary to
the venture ?rm’s main objective of keeping the startup healthy and able to take advantage of
every opportunity for growth. Sometimes, these opportunities take the startup outside of the
state, but the return on investment always comes back to the Michigan venture ?rm, freeing
capital to invest again in new Michigan-based startups.
An exit is an event that allows a venture capital frm
to realize a return on their investment in a startup
company. An initial public ofering (IPO) or an
acquisition (being bought out by a larger player in the
industry) is an opportunity for further fnancing and
growth for a startup company.
14 MVCA 2015 VENTURE CAPITAL REPORT
A TIMELINE OF MICHIGAN SUCCESSES
2000 Blue Gill Technologies, Genitor Corporation, Genvec
2002 Mechanical Dynamics
2004 Esperion Therapeutics, Healthcare Solutions,
Intralase, Stoneage Corporation, Colorbok
2005 Arbortext, Afmedica
2006 Asterand
2008 HealthMedia, Sircon, Sensicore
2009 HandyLab, Assay Designs, Applimation,
Pump Engineering
2010 Arbor Networks, Mobius Microsystems,
QuatRx Pharmaceuticals
2011 Accuri Cytometers, EcoSynthetix (IPO), Micronics
2012 Arbor Photonics, V.I.O
2013 Esperion (IPO), Livio Radio, Pioneer Surgical
Technology, Relume Technologies
2014 Seelio, ForeSee Results
MVCA 2015 VENTURE CAPITAL REPORT 15
2014 EXITS BY MICHIGAN VENTURE FIRMS
Company Location Sector Michigan Venture Firm(s)
CardioMEMS Atlanta, GA Life Science/ Arboretum
Healthcare
DramaFever New York, NY Media MK Capital
ForeSee Results Ann Arbor, MI Information Not Disclosed
Technology
Image Integration Perrysburg, OH Information Plymouth Ventures
Systems Technology
Luvocracy San Francisco, CA Marketplace RPM Ventures
PODS Westrock Clermont, FL Other Plymouth Ventures
RedPath Integrated Pittsburgh, PA Life Science/ Plymouth Ventures,
Pathology Healthcare Seneca Health Partners
Reverse Medical Irvine, CA Life Science/ Early Stage, BioStar
Healthcare
RideScout Austin, TX Other Huron River Ventures
Seelio Ann Arbor, MI Information First Step Fund
Technology
SilverPop Atlanta, GA Media Wolverine Venture Fund,
Draper Triangle
Simbionix Cleveland, OH Life Science/ Early Stage
Healthcare
Stylecaster NY Information Detroit Venture Partners
Technology
TOA Cleveland, OH Information Early Stage,
Technology Draper Triangle
Xtime Redwood City, CA Other RPM Ventures,
Draper Triangle
ForeSee Results
A pioneer in customer experience
analytics, ForeSee continuously
measures satisfaction across customer
touch points and delivers insights on
where to prioritize improvements for
maximum impact. Using a technology
spun-out from the University of
Michigan, ForeSee made Ann Arbor
its home and has stayed in the city
even after a 2014 acquisition by
Answers.com.
Seelio
Seelio partners with higher education institutions
to create student lifecycle portfolios
™
, which
prepare students for a successful future starting
at orientation all the way through to graduation.
In June, the company was acquired by PlattForm,
a marketing and enrollment management partner
for colleges and universities worldwide. Seelio
expects to add to its 22-person team in Ann Arbor
over the next ?ve years, as the company grows
its partnerships, technology, service, and
design teams.
Exits
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Where will this investment capital come from? The MVCA
survey indicates that 41% of the money in Michigan-based
venture capital funds comes from institutions outside of
Michigan.
As the number of investment-worthy startups in Michigan
grows, so does the level of activity in the venture community.
Demand for venture capital, the number of venture ?rms
active in the state, and the number of investments in and
amount of capital available to Michigan businesses are
metrics we expect to increase alongside growth of the
startup community.
Current funds under management in Michigan will not meet
the known future venture capital demand, so successful
fundraising is critical to the growth of Michigan startups.
Venture ?rms in Michigan must work hard to ?nd the critical
early-stage investment capital our Michigan economy
relies on. Reliable in-state fundraising targets, including
endowments, fund-of-funds, pension plans and founda-
tions, are important players in the long-term health of
Michigan’s entrepreneurial ecosystem and the venture
community that invests in them.
Building on the Momentum:
Future Demand for Venture Capital in Michigan
The 37 venture ?rms in Michigan estimate that their Michigan-based portfolio companies
will need more than $1.3 billion in additional venture capital investment in the near future, as
the companies continue to grow and bring on new employees. Additionally, Michigan-based
venture ?rms are actively investing in new Michigan-based startups which will require continued
support as they grow. In order to encourage and support this extraordinary statewide business
development, Michigan venture ?rms are actively fundraising to meet this demand.
Venture capital frms are a great conduit for bringing
money into the state of Michigan from other states.
Not only do Michigan venture frms raise money from
outside of the state of Michigan but they also work hard
to fnd co-investors for great Michigan startups from
outside of the state of Michigan.
30%
Individuals
44%
Non-Michigan
Institutions
11%
Michigan-based
Fund of Funds
15%
Other
SOURCES OF CAPITAL
FOR MICHIGAN
VENTURE CAPITAL
FUNDS
“Over the past 15 years, a set of
very successful, serial entrepreneurs
has developed in Michigan. This
‘class’ of repeat entrepreneurs means
the growth of exciting new companies
will only accelerate, creating more
demand for early stage capital and
even more top-notch deal ?ow for Michigan VCs.”
– Tim Petersen, Managing Director, Arboretum Ventures.
44%
Non-Michigan
Institutions
DISTRIBUTION OF MICHIGAN
VENTURE CAPITAL FUND SIZES
NUMBER OF VENTURE INVESTMENT
PROFESSIONALS IN MICHIGAN
2007
2008
2009
2010
2011
2012
2013
2014
40
43
48
58
66
71
81
115
2008 2009 2010 2011 2012 2013 2014
21
8
5
3
2
3
6
6
4
2
4
8
6
5
2
4
7
6
6
2
6
9
6
5
2
7
10
8
6
3
6
13
8
5
3
8
22
25
27
29
33
37
$0-$25 Million $26-$50 Million $51-$75 Million $76-$100 Million >$100 Million
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12 FIRMS
were actively raising
$652 million
to invest in new businesses
In 2014
9 FIRMS
will be actively raising
$599 million
to invest in new businesses
In 2015
13 FIRMS
will be actively raising
$676 million
to invest in new businesses
In 2016
Tissue
Regeneration
Systems
Founded in 2008, Tissue
Regeneration Systems,
Inc. (“TRS”) has built a
technology platform
that creates skeletal
and bone implants
using 3-D printing.
The implants are
bioresorbable, porous,
and coated with a
mineral that encourages natural
bone regrowth in patients who
undergo craniomaxillofacial,
orthopedic, or spine fusion surgeries.
Why Michigan?
The TRS technology platform was
originally licensed from the
University of Michigan, which later
provided technical staff as well.
“We continue to work very closely
with our academic founders, so
the Ann Arbor area was a natural
location for our business,” said
TRS CEO and President Jim
Fitzsimmons.
2014 Highlights
TRS closed a $3.25 million bridge
?nancing and established/certi?ed
an independent, GMP-compliant
implant fabrication operation in
Plymouth, Michigan. The company
signed its ?rst major corporate
partnership deal, a collaboration
with Johnson and Johnson
Corporation to co-develop a new
long bone reconstruction implant.
2014 Spotlights
Michigan’s rich entrepreneurial tradition is characterized by
daring founders of young companies acting boldly and
commercializing innovative ideas, and the growth-oriented
businesses of today’s venture-backed community are no
exception. MVCA members provide funding at a crucial point in
the company’s development, when the capital and guidance of
seasoned investors can be invaluable. Although the structure,
size and style varies greatly from deal to deal, all portfolio
companies share the common need for outside capital to keep
the business on a successful trajectory, and the continued good
health of the Michigan venture community ensures there will be
support for these businesses for years to come.
For this report, we’ve chosen to feature a few MVCA member
portfolio companies, representing every stage of development
and at different points on the capital continuum, to showcase
the diverse and ?ourishing population that can be found in our
vibrant Michigan entrepreneurial ecosystem.
Larky
Larky develops mobile-?rst
engagement platforms for banks,
credit unions, health insurers,
universities and employers. Its
mobile apps use location awareness
to notify users when they are near
an offer or discount that they are
entitled to based on their
memberships.
Why Michigan?
CEO Gregg Hammerman says
proximity to talent is what makes
Michigan a good home for his
business. “Michigan is a great
place to ?nd smart, hard-working,
innovative talented people who are
increasingly interested in being a
part of an early stage company and
contributing its success,” he says.
2014 Highlights
North Coast Technology Investors
led a funding round that closed in
May. Since then, Larky has added
more than a dozen enterprise
clients including Lake Trust Credit
Union and Disney, while growing
its staff by eight.
HistoSonics
HistoSonics uses a pulsed sound energy technology called histotripsy to treat
a variety of clinical conditions without incision or heat effects, thereby reducing
patient trauma, improving clinical outcomes and lowering overall cost of care. The
company is advancing its ?rst clinical application in the U.S. and Canada, applying
the Vortx RX® device to the treatment of
Benign Prostatic Hyperplasia (BPH).
Why Michigan?
Histotripsy, the core technology on
which the company is based, started with
an exclusive license of the intellectual
property portfolio from the University
of Michigan, said CEO Chris Gibbons.
“Histotripsy had been developed over
many years of research by an incredible
team of scienti?c and clinical co-inventors
at U-M. We continue to have a strong
relationship with the founding University
team and mutually bene?t from an
ongoing collaboration,” she said.
Michigan is also a state rich in resources,
starting ?rst with a highly skilled workforce, the majority of whom were originally
based in Michigan. We have also bene?ted greatly from a strong, capable supply
base knowledgeable in the requirements of supplying to the medical device industry.
Lastly, locating in Ann Arbor has allowed us to position ourselves in the midst of a
thriving entrepreneurial community with access to investors, other entrepreneurs
and service providers who support them.
2014 Highlights
A key highlight was the completion of enrollment in HIstoSonics’ ?rst-ever clinical
study of its investigational device, the Vortx RX. Final results are pending, but thus
far the device demonstrates an excellent safety pro?le and impressive symptom
improvement. HistoSonics and U-M teams also continue work on future clinical
applications for the technology, including congenital heart defect in infants.
TOME Software
Tome Software develops connectivity
products to keep people mobile
and active, and creates value as a
focused niche within the larger
“Internet of Things” movement.
Why Michigan?
Founder Jake Sigal and his business
partner couldn’t be persuaded to
move to the coasts after they sold
their previous company, Livio, to
Ford in 2013, despite many pleas
to do so. “We
chose to stay in
Michigan for the
access to available
engineers. At
Livio, we started
relationships
with Michigan
State, Michigan,
Lawrence Tech,
and Kettering
for both recent
graduates as well
as hiring alumni that want to return
to Michigan. We have continued the
same process with our new venture,
Tome Software,” Sigal says.
2014 Highlights
In just its ?rst year of operation,
Tome Software was pro?table and
raised $250,000 in convertible debt
from previous Livio investors.
ProNAi
ProNAi Therapeutics is a private
company dedicated to developing
and commercializing a new class of
therapies based on its proprietary
DNAi platform, for patients with
cancer and other diseases. ProNAi’s
lead DNAi drug is PNT2258, which
is speci?cally designed to treat
cancers that overexpress BCL2. To
date, 35 patients have been treated
with PNT2258 in a Phase I and a
pilot Phase II trial, with compelling
ef?cacy and safety results.
Why Michigan?
The company credits the
collaboration among Michigan’s
Life Sciences community,
including its entrepreneurs,
investors, ex-P?zer scientists,
universities, drug development
consultants, legal support, and
state programs/infrastructure,
for providing ProNAi a fertile
environment in which to grow.
Proximity to a global airport hub
has also helped the team introduce
ProNAi’s innovative technologies to
the world.
2014 Highlights
In May 2014, ProNAi raised
approximately $60 million from
new and existing investors. The
oversubscribed Series D round
added to more than $30 million
already raised since the company’s
founding.
ForeSee
Results
A pioneer in customer experience
analytics, ForeSee continuously
measures satisfaction across
customer touch points and delivers
critical insights on where to
prioritize improvements for maximum
impact. ForeSee is a Software as
a Service (SaaS) technology that
connects the customer experience
to the bottom line, resulting in
better business decision-making for
companies and a better experience
for consumers.
Why Michigan?
Using a technology spun-out from
the University of Michigan, ForeSee
naturally made Ann Arbor its ?rst
home. It stayed in the city even as
it grew its workforce to over 300
people because the area supplied
employees with “a hard-working
attitude, high integrity and loyalty,”
recalls founder Larry Freed. Despite
pressures from outside stakeholders
to relocate, Freed says the positive
attributes of Michigan, the support
of the local community and MEDC,
and the company’s continued
success in Ann Arbor gave it
compelling reasons to stay in
Michigan.
2014 Highlights
Integrating the ForeSee solution
with the SaaS platforms of acquirer
Answers.com remained a major
focus in 2014 for the company, as it
continued on its growth trajectory.
ArborMetrix
“Michigan Venture Capital Association continues to demonstrate the important
contributions its programs are making to stimulate economic growth. ArborMetrix
has directly bene?ted from MVCA programs by leveraging their market experience
and outreach, as well as vast networks of strategic partners, which have certainly
accelerated our growth. Every state should have a similar advocate for investing
in local companies that can contribute so much to the business environment.”
— Brett Furst, CEO of ArborMetrix
Founded in 2011 by leading clinical and economic researchers, ArborMetrix
provides a cloud-based platform for performance measurement and clinical
intelligence in acute and specialty healthcare.
Target markets include specialty societies
focused on improving quality and “at-risk”
entities (plans, health systems and ACOs)
that want to identify variation in care while
improving clinical value.
Why Michigan?
ArborMetrix has grown its team by tapping
Michigan’s best and brightest business
minds, statisticians, software intelligence
developers and engineers. The company has
relied on the state’s culture of embracing the
entrepreneurial spirit and passion for taking
ideas from the drawing board to the
marketplace. “There’s tremendous support
and resources for new start-up companies in
Michigan, from the Governor’s of?ce to local business and economic development
sources such as Ann Arbor SPARK,” comments Brett Furst, CEO of ArborMetrix
2014 Highlights
ArborMetrix closed $1.3 million in additional
Series B funding (for a total raise of $9.8 million)
from Michigan investors Renaissance Venture
Capital Fund and Detroit Innovate. It was
honored with several industry awards, including
Frost and Sullivan’s “2014 Best Practices Award”
and Healthcare Informatics’ “Up and Comers
Award”.
Tetra Discovery
Partners
Tetra Discovery Partners designs
drugs to restore clarity of thought in
patients suffering from Alzheimer’s
disease, schizophrenia or traumatic
brain injury. Its novel, ?rst-in-class
therapy for improving learning and
memory will enter human clinical
trials in 2015.
Why Michigan?
According to Mark Gurney, PhD,
Chairman & CEO of Tetra Discovery
Partners, locating
the company in
West Michigan
allows for easy
access to high
quality life science
incubators, an
educated work
force, and access
to ?nancing
appropriate for
start-ups through
a combination of
angel investors, MEDC funds and
venture capital. Additionally, he
says, “Michigan features a high
quality of life, the people are friendly
and housing is affordable.”
2014 Highlights
Tetra raised $2 million from private
investors to leverage $15 million in
funding through the National
Institutes of Health; current
Michigan investors include Grand
Angels, Muskegon Angels, Invest
Michigan, SPARK, and Western
Michigan University’s Biosciences
Research & Commercialization
Center.
2014 2014
2015
CLARE
Advanced Battery Concepts
EAST LANSING
Bene?t
Biophotonic Solutions, Inc.
Gema Diagnostics
Supported Intelligence, LLC
FLINT AREA
Global Energy Innovations Inc
GRAND RAPIDS AREA
Blackbird RSVP
Blue Medora
Empirical Bioscience, LLC
Grand Rapids Aceptic Manufacturing
PrograMax
Pipp Mobile Storage Systems
Ranir
Respondwell
Sequenom Center for
Molecular Medicine
Sportsman Tracker
Tetra Discovery Partners LLC
TransCorp Spine
Varsity News Network
Zipments Corp
GRAWN
Altus Brands, LLC
HARRIETTA
Harrieta Hills Trout Farm
HOLLAND
AlSentis
Conpoto
Creative Byline, Inc.
Energetx Composites
ALLEGAN
Advanced Architectural Products
LANSING
AFID Therapeutics, Inc.
IDV Solutions, LLC
nanoRETE
XG Sciences, Inc
HASLETT
Diplopia
Inventure
Enterprises, Inc.
BRIGHTON
Meditory
LELAND
Michelle’s Miracle, Inc.
MARQUETTE
VIO
MIDLAND
Envy Modular Wall Systems, Inc.
ePaySelect, Inc.
Fulcrum Composites, Inc.
PORT HURON
ParkingCarma, Inc.
LEXINGTON
Huron Inc
SARANAC
Conceivex
SPRING LAKE
American Glass Mosaics
TRAVERSE CITY
CloudAccess.net
Salamander Technologies
Silikids
Tellurex Corporation
JACKSON
Great Lakes Caring
There are currently 129
venture-backed companies
in Michigan, a 70%
increase in the last
?ve years.
Fifty one companies in Michigan
received more than $204 million
from Michigan venture capital ?rms
in 2014. This is an 89% increase in
the last ?ve years.
In 2014, Michigan-based venture
capital ?rms had $1.7B in capital
under management, an increase of
45% in the last 5 years.
The number of venture ?rms
with an of?ce or headquarters
in Michigan has increased by
48% in the last ?ve years.
Michigan VC ?rms invested in
97% of all Michigan startups
that received any venture
capital in 2014.
In 2014 there were 9 Angel
Groups in Michigan with 272
Active Angel Investor Members,
a 45% increase in membership
in the last ?ve years.
There are currently 214 startup companies in
Michigan that have received funding from a Michigan
angel group, a 206% increase in the last ?ve years.
The number of venture
capital investment
professionals living,
working, and investing in
Michigan has increased by
98% in the last ?ve years.
70
%
45
%
48
%
97
%
98
%
OAKLAND COUNTY
365 Retail Markets,
Arbor Plastics Technologies, LLC,
Ardent Cause, AutoBike, Inc.,
BoroPharm, Inc, Carbon Media,
Career Now, Clicktivated Video,
CMS Technologies, Coliant
Corporation, CureLauncher, Emiliem,
Estrakon, Excel Rehabilitation Services,
Firebolt Group, Inc., First Sense Medical,
gloStream, GSTV, iTrack, LLC,
Law Enforcement Intelligent Devices,
LLC, Lipari, Meditory, MyineElectronics,
OwnThePlay, Oxus America, Inc,
Peachworks, RazorThreat, Inc,
Reach In?uence, Relume, RevSpring,
Sentio, LLC, TM3 Systems, Inc. , Ventech,
LLC SherTrack LLC, SirionLabs, Inc.,
Tome, Unitask, Weathershield, LLC
DETROIT AREA
Algal Scienti?c Corporation, American Mountain Co.,
Are You a Human Inc., BEET, LLC, BioSavita, Inc, BoostUp,
Clean Emission Fluids, Inc, Delphinus Medical Technologies,
DeNovo Sciences, Inc., Detroit Institute of Music Education,
Detroit Materials, Eco-Fueling, Inc, ENT Biotech Solutions Inc.,
Fusion Coolant Systems, Inc., FutureNet Group, Inc.,
Ginkgotree, Grand Circus, Greenlancer Energy, IC Data Com,
Intervention Insights, Inc., iRule, LevelEleven, Mitostem, Inc.,
NextCat Inc., ProNai Therapeutics, Quikly, Reach In?uence,
SocialProof, Spider9, Inc., Spirit Shop,
Tissue Regeneration Systems, Unitask, UpTo
DEERFIELD
Limo-Reid, Inc.
KEY FACTS
37 Venture Funds, 2 Corporate VC ?rms, 2 fund of funds
129 Venture-Backed Companies active in MI in 2014
$4.8B Total Capital under Management - $1.7B Total
Capital under Management for ?rms headquartered in
Michigan
51 companies in Michigan received more than $204
million in venture capital funding in 2014
9 Angel Groups in Michigan with 272 Active Angel
investor Members
214 Angel-Backed Companies Active in Michigan in 2014
45
%
206
%
206 206
ANN ARBOR AREA
3D Biomatrix, A2B Bikeshare LLC, Accio Energy, AdAdapted,
Akadeum Life Sciences, AlertWatch, Inc., Ampli?nity,
Arbor Blue, LLC, Arbor Photonics, Inc., Arborlight, LLC,
ArborMetrix, ArborWind, LLC, Atterocor, Inc., Avegant, Biotectix,
LLC, Blaze Medical Devices, LLC, Covaron, Cribspot,
Current Motor Company, CytoPherx, Deep?eld Networks,
Duo Security, Eloquence Communications, Epsilon Imaging,
ERT Systems, LLC, Esperion, FarmLogs, Flock Tag LLC,
FreeStride Therapeutics, Inc., HistoSonics,
InfoReady Corporation, Janeeva, Larky, Inc.,
Life Technologies Corp., LLamasoft, Local Orbit, Lycera,
Mandy & Pandy, Memloom, Molecular Imaging, Inc.,
MyFab5 Inc, NanoBio, Nanocerox, NeuMoDx Molecular,
New Eagle Products, Inc., NextGen Metabolomics, Nutshell,
Nymirum, Inc., OcuSciences, Inc, ONL Therapeutics,
OptoAtmospherics, OWN POS, Phrixus Pharmaceuticals,
Pinnocio, Pixel Velocity, Inc., Portal Architects,
RetroSense Therapeutics, LLC, Reveal Design Automation, Inc.,
Root3, Sakti3, Seelio, Inc., SkySpecs Inc., STKR.it, Inc., Stratos, Inc.,
Swift Biosciences, Tangent Medical Technologies, Inc.,
TECAT Performance Systems, TurtleCell, Volution Capital,
White Pine Systems, LLC, XanEdu Publishing, Inc.,
KALAMAZOO
Ablative Solutions
Armune BioScience
Aursos, Inc.
Axonia Medical
Lynx Network Group, Inc.
Metabolic Solutions Development
Mophie
RealBio Technology Inc.
Tolera
Vestaron Corporation
WHITE PIGEON
Exo
Fiber By-Products
MAP KEY
Venture-Backed
Companies
Angel-Backed
Companies
Both
ANNUAL RESEARCH REPORT
89
%
MVCA 2015 VENTURE CAPITAL REPORT 18
“HistoSonics would not be where it
is today without the strong support from the Michigan
venture community. HistoSonics was launched in late
2009 with the infusion of capital from a syndicate of ?ve
venture funds; four of those funds have ties to Michigan and all
share the vision we have in our technology’s potential to positively impact patient care.
A startup goes through many peaks and valleys in its early years. Our investors have
been there with us, shoulder-to-shoulder, as we addressed challenges head-on, cleared technology hurdles
and built a strong foundation in this platform technology and clinical device for non-invasive therapy.”
– Chris Gibbons, CEO, HistoSonics
Startups in the Ann Arbor Area
• There are currently 44 growing
Ann Arbor companies
that have received more
than $590M in
venture capital funding
• While Michigan
venture funds invest
in a wide variety of
sectors, the Information
Technology and Life Science sectors have been the
main focus of capital deployment in the Ann Arbor
area. Currently, 39% of the companies that received
VC funding in the region were life science companies
and 46% of the companies were Information
Technology companies.
Venture Capital Investment in Ann Arbor
Companies in Business Today
by Sector
MVCA 2015 VENTURE CAPITAL REPORT
Venture Capital in the Ann Arbor Area
• There are currently 20 venture ?rms with
headquarters or of?ces located in Ann Arbor, which
represents 54% of all ?rms with
of?ces in Michigan
• Just 23% of venture capital
managed in Ann
Arbor is
available
for new
investment
Venture Capital
in Ann Arbor
Washtenaw County
Ann Arbor Area
With over half of all Michigan venture ?rms operating in the Ann Arbor area, this home of the
University of Michigan is a hub of entrepreneurial and investment activity. The high concentration
of early-stage capital in the Ann Arbor area has led to increased cooperation among venture ?rms
to ensure startup companies are able to ?ll their funding rounds. Of the 44 venture-backed Ann Arbor
area startups, those in Life Sciences and Information Technology received the bulk of venture capital
investment in 2014.
75%
capital deployed into
startup companies
2%
capital reserved
for additional
investment
into Michigan
startup
companies
23%
capital available
for new startup
companies
11
%
have a CEO
who is a
minority
46%
Information
Technology
2%
Advanced
Materials and
Manufacturing
2%
Consumer
Products
18
%
have a CEO
who is a
woman
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
39%
Life Science/
Healthcare
11%
Life Science/
Healthcare
16
%
of the venture
professionals
located in Ann
Arbor are
women.
24
%
of the venture
professionals
located in Ann
Arbor are
minorities.
MVCA 2015 VENTURE CAPITAL REPORT 19
• In 2014, 19 growing Ann Arbor
companies received more than
$72M in venture capital
funding
• In 2014, in Ann Arbor,
100% of all venture
backed companies that
received investment in
2014 received support
from at least one Michigan venture ?rm.
37% of these venture-backed startups
received support from more than one
Michigan venture capital ?rm which is
an indication that the Ann Arbor area
has a very collaborative entrepreneurial
ecosystem.
• While Michigan venture funds invest in a wide
variety of sectors, the Life Science and Information
Technology sectors continued to be the main focus
of capital deployment in the Ann Arbor area in 2014.
38% of the companies that received VC funding in
this region in 2014 were life science companies.
57% of companies that received VC funding in the
Ann Arbor area in 2014 were Information Technology
companies.
MVCA 2015 VENTURE CAPITAL REPORT 19
Life Science companies typically tend to require more
capital to grow their businesses than other sectors.
Venture Capital Investment in Ann Arbor Area
Startups in 2014
by Sector
Total Amount Invested in Ann Arbor Area
Startups in 2014
by Sector
Venture capital frms typically invest in geographic areas
they can easily travel to or in areas they have strong
co-investors. Michigan venture capital frms have a
strong reputation nationally and frequently utilize
these national ties to attract more money for a
Michigan startup.
Startups in the Ann Arbor Area in 2014
0
%
have a CEO
who is a
minority
5
%
have a CEO
who is a
woman
0%
consumer
products
5%
consumer
products
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
38%
life science/
healthcare
57%
information
technology
64%
life science/
healthcare
36%
information
technology
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Startups in the Detroit Area
• There are currently 24 venture-
backed startups in the
Detroit area who have
collectively received more
than $186M in
venture capital funding
• While Michigan ven-
ture funds invest in a
wide variety of sectors,
the Information Technology sector has historically
been the main focus of capital deployment in the
Detroit area. Currently, 54% of the startup companies
that have received venture capital funding in the
region were information technology companies.
Venture Capital in the Detroit Area
• Over 15 venture capital ?rms in Michigan
have invested in startups in Wayne County
• There are currently 5 venture
?rms with headquarters or
of?ces located in Detroit,
which represents
14% of all ?rms
with of?ces
in Michigan
• Just 31%
of venture
capital
managed in
Detroit is avail-
able for new investment
Wayne County
Detroit Area
The Detroit area is quickly becoming a new center of venture capital activity in Michigan. More remarkable
than the number of new venture investments in Detroit is the rate at which those new investments are
being made: the amount of new venture investments made in Detroit startups doubled in the last ?ve years.
63%
capital deployed into
startup companies
6%
capital reserved
for additional
investment
into Michigan
startup
companies
31%
capital available
for new startup
companies
13
%
have a CEO
who is a
minority
0
%
have a CEO
who is a
woman
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
Venture Capital in the Detroit Area
22
%
of the venture
professionals
located in Detroit
are women.
28
%
of the venture
professionals
located in Detroit
are minorities.
Venture Capital Investment in Detroit Area
Startups in Business Today
by Sector
54%
Information
Technology
8%
Advanced
Materials and
Manufacturing
4%
Consumer
Products
21%
Life Science/
Healthcare
13%
Other
2004
2008
2010
2011
2012
2013
2014
2
1
4
3
5
6
8
Number of New
Detroit Area Startups
Receiving Venture
Investment for the
First Time Each Year
Detroit is quickly becoming a new center of entrepre-
neurial and venture capital activity in Michigan.
The number of Detroit-based
companies receiving venture
capital investment for the ?rst
time has increased 100% in the
last ?ve years. The diversity of startups
receiving venture capital investment in Detroit is even
more striking, as the eight new investments in Detroit
are spread among companies in ?ve different indus-
tries.
MVCA 2015 VENTURE CAPITAL REPORT 21
• In 2014, 12 growing Detroit
area companies received more
than $88M in venture
capital funding
• In 2014, in Detroit,
100% of all venture
backed companies
that received invest-
ment in 2014 received
support from at least one Michigan venture ?rm.
33% of these venture-backed startups
received support from more than one
Michigan venture capital ?rm which is
an indication that the Detroit Area has a
very collaborative entrepreneurial ecosystem.
• While Michigan venture funds invest in a wide vari-
ety of sectors, Information Technology is the main
focus of capital deployment in the Detroit area in
2014. 52% of startups that received venture capital
funding in the Detroit area in 2014 were information
technology companies.
Venture Capital Investment in Detroit Area
Startups in 2014
by Sector
Total Amount Invested in Detroit Area
Startups in 2014
by Sector
2014 Activity in the Detroit Area
8
%
have a CEO
who is a
minority
0
%
have a CEO
who is a
woman
4%
Consumer
Products
9%
consumer
products
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
30%
life science/
healthcare
52%
information
technology
81%
Life Science/
Healthcare
13%
Information
Technology
9%
advanced
materials and
manufacturing
2%
Advanced
Materials and
Manufacturing
“
Detroit has seen
explosive growth in
the last few years
with entrepreneurs setting up shop in downtown
Detroit’s thriving technology hub. Detroit
Venture Partners is thrilled to be a part of that
growth, by investing in many of the early stage
startups who are part of Detroit’s new innovation
economy.“
– Gabe Karp, Partner, Detroit Venture Partners
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MVCA 2015 VENTURE CAPITAL REPORT 22
Startups in Oakland County
• There are currently 18 venture-backed
startups in Oakland County, half of which have
received an investment from a Michigan venture capital
?rm within the last two years. This spike in activity is
a re?ection of the momentum building in the venture
community and playing out in Oakland County.
• Historically, venture capital investment in Oakland
County has been in three main sectors: Information
Technology, Life Science, and Media. Currently, 67%
of the companies that have received venture capital
funding in the region were Information Technology
startups.
Venture Capital in Oakland County
• There are currently 3 venture ?rms with headquarters
or of?ces located in Oakland County. Historically,
7 Michigan venture ?rms have invested in
Oakland County startups – many of these ?rms have
a strong track record of investing in Oakland County
dating back to the 1990s when there was much
less venture capital available in Michigan. With 37
venture ?rms located in Michigan and dedicated to
investing in great Michigan companies, there is oppor-
tunity for increased investment in Oakland County.
• Of the 7 Michigan-based venture ?rms that have a
strong track record of investing in Oakland County,
72% of their capital has already been deployed,
leaving only 24% to be invested in new startups.
This highlights the importance of continued
fundraising by these ?rms in order to keep up
with the demand by new and existing startups
for venture capital investment.
Oakland County
Oakland County is home to some of Michigan’s longest-tenured venture professionals, whose deep
experience in venture capital helped form and support Michigan’s entrepreneurial community over
several decades. Entrepreneurial companies and their founders like Oakland County’s proximity to a
large potential customer base and its central location in SE Michigan’s economic power region.
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
72%
capital deployed into
startup companies
4%
capital reserved
for additional
investment
into Michigan
startup
companies
24%
capital available
for new startup
companies
Venture Capital in Oakland County
Venture Capital Investment in Oakland County
Startups in Business Today
by Sector
Total Amount Invested
in Oakland County
Startups Historically
by Sector
67%
Information
Technology
5%
Advanced
Materials and
Manufacturing
6%
Business
Services
11%
Life Science/
Healthcare
11%
Media
58%
Information
Technology
1%
Advanced
Materials and
Manufacturing
5%
Life Science/
Healthcare
36%
Media
Oakland County startup
companies in the Media
and Information Technology
sectors secured 94% of
venture capital dollars
invested in the region.
“Attracting the best STEM talent
to our region requires the best companies,
the coolest projects, and dependable
support from local government.
Oakland County has been a great partner
and advocate for tech in the region for our previous
company, Livio (acquired by Ford), and our new business Tome Software.”
– Jake Sigal, CEO, Tome Software
MVCA 2015 VENTURE CAPITAL REPORT 23
• In 2014, 6 growing Oakland
County companies received
more than $19M in
venture capital funding
• In 2014, in Oakland
County, 83% of all
venture backed
companies that
received investment in
2014 received support from a Michigan venture ?rm.
None of these venture-backed startups
received support from more than one
Michigan venture capital ?rm, pointing
to the opportunity for increased
networking and collaboration within the county.
• Information Technology was the main focus of
investment in Oakland County in 2014. 67% of
startups that received venture capital funding
in Oakland County in 2014 were information
technology companies.
Venture Capital Investment in Oakland County
Startups in 2014
by Sector
2014 Activity in Oakland County
0
%
have a CEO
who is a
minority
8
%
have a CEO
who is a
woman
17%
media
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
16%
life science/
healthcare
67%
information
technology
“
In choosing to locate IncWell in
Oakland County, we have placed
ourselves in the midst of an
arsenal of resources that have helped us invest in
27 companies since launching our first fund in 2013.”
Oakland County is also an ideal place for startups.
We are a stone’s throw away from the top automotive, manufacturing, and technology
companies and their vast research and development facilities. The state of Michigan
is also home to some of the finest universities in the country and provides an excellent
technology home base for startups. We are able to utilize these connections to help
the startup companies in our portfolio. “
– Tom LaSorda, Founder & Managing Partner, IncWell
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MVCA 2015 VENTURE CAPITAL REPORT 24
Startups in West Michigan
• There are currently 24 venture-
backed startups in
West Michigan who have
collectively received
more than $185M
in venture capital
funding.
• Venture capital
investment is
particularly diverse in West Michigan,
with a large variety of sectors receiving investment
by Michigan venture capital ?rms. The Information
Technology and Life Science sectors have histori-
cally been the main focus of capital deployment in
West Michigan; currently, 42% of the startup companies
that have received venture capital funding in the
region were information technology companies and
34% were life science companies.
Venture Capital in West Michigan
• There are currently 6 venture
?rms with headquarters
or of?ces located in West
Michigan, which represents
16% of all ?rms
with of?ces
in Michigan.
• Only
3% of
venture
capital
managed
in West Michigan is available for new
investment, re?ecting the need for additional
fundraising by Michigan venture ?rms to help West
Michigan’s growing companies.
West Michigan
Grand Rapids, Kalamazoo, and surrounding areas
West Michigan’s active angel investors, two large universities (Grand Valley State University and
Western Michigan University), and an entrepreneurial community with a strong dedication to
West Michigan are large contributors to the diverse investment activity in the region. In addition,
six venture ?rms are headquartered or have of?ces in West Michigan, with the highest concentration
of activity in Grand Rapids and Kalamazoo.
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
Venture Capital in West Michigan
Venture Capital Investment in West Michigan
Startups in Business Today
by Sector
34%
Information
Technology
4%
Advanced
Materials and
Manufacturing
6%
Business
Services
(non IT)
42%
Life Science/
Healthcare
8%
Other
8%
Consumer
Products
16
%
of the venture
professionals
located in West
Michigan are
women.
5
%
of the venture
professionals
located in Detroit
are minorities.
94%
capital
deployed
into startup
companies
3%
capital reserved
for additional
investment
into Michigan
startup
companies
3%
capital available
for new startup
companies
13
%
have a CEO
who is a
minority
0
%
have a CEO
who is a
woman
“Organizations like StartGarden, Ann Arbor SPARK,
and Michigan’s network of angel and venture investors
have created an increasingly robust resource infrastructure,
which has been critical to VNN’s continued growth. It’s humbling
to be a part of the amazing growth of this community.”
– Ryan Vaughn, CEO, Varsity News Network
MVCA 2015 VENTURE CAPITAL REPORT 25
• In 2014, 12 growing West
Michigan companies
received more than
$29M in venture
capital funding
• In 2014, in West
Michigan, 92% of
all venture backed
companies that received
investment in 2014 received support from at least
one Michigan venture ?rm.
25% of these venture-backed startups
received support from more than one
Michigan venture capital ?rm.
• Information Technology was the main focus of
investment in West Michigan in 2014. Almost half
(46%) of startups that received venture capital
funding in West Michigan in 2014 were Information
Technology companies. However, the more capital
intensive Life Science startups raised 72% of the
venture funding in 2014.
Venture Capital Investment in West Michigan
Startups in 2014
by Sector
2014 Activity in West Michigan
0
%
have a CEO
who is a
minority
8
%
have a CEO
who is a
woman
THE IMPORTANCE OF VENTURE CAPITAL TO YOUR COMMUNITY
9%
Advanced Materials
and Manufacturing
9%
Business Services
(non IT)
36%
Life Science/
Healthcare
46%
Information
Technology
Total Amount Invested
in West Michigan Startups
in 2014
by Sector
25%
Information
Technology
1%
Advanced
Materials and
Manufacturing
72%
Life Science/
Healthcare
2%
Business Bervices
(non IT)
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MVCA 2015 VENTURE CAPITAL REPORT 26
Angel Groups in Michigan
Life Science
Information Technology
Alternative Energy
Advanced Materials
& Manufacturing
Media
Business Services
Consumer Products
Other
8
9
9
8
4
5
7
6
INDUSTRY SECTORS
OF INTEREST
Who are angel investors?
Angel investors are high net worth individuals who
invest in startups. Since angel investors are very often
individuals that have held executive positions at large
corporations or former founders of a successful business,
they can provide valuable advice and introductions to
the entrepreneur, in addition to funding.
What is an angel group?
An angel group (or network) is an organization of
multiple angels who pool capital available to invest in
startups and share information on new investment
opportunities. Angel groups typically meet monthly
in order to view fundraising pitches made by startups.
How much do angel groups invest in startups?
A typical angel group investment into a single company
ranges between $25,000 and $3 million.
There are currently 210 startup
companies in Michigan that
have received funding from a Michigan
angel group, a 200% increase in the
last ?ve years.
In 2014, the nine angel groups
in Michigan were comprised of
257 investors, a 37% increase
in angel participation in the last
?ve years.
Angel investors in Michigan support
companies in a wide variety of sectors.
Having a rich pipeline of angel-backed
startups across many sectors creates
diverse opportunities for later-stage
investment by Michigan
venture ?rms.
Information Technology and Alternative Energy are sectors
of focus for all nine angel groups in Michigan, followed by
Life Science and Advanced Materials and Manufacturing.
In 2014, 18
%
of the startups
who received angel
investment in Michigan
were women.
In 2014, 6
%
of the startups
who received angel
investment in Michigan
were minorities.
200
%
37
%
MVCA 2015 VENTURE CAPITAL REPORT 27
Reveal Design Automation develops
software solutions to guarantee that the
complex, low-power semiconductor systems
critical to consumer products, storage,
networking, automotive, medical, security,
and space applications are functionally
correct and bug-free.
2014 Highlights
Reveal Design Automation leveraged seed
grant and angel investments to take its
fagship product to the market in 2014. That
initial product launch was successful, which
will allow sales revenues to drive company
growth for the next 18 months.
RetroSense Therapeutics is developing
gene therapies to restore vision to people
whose blindness was caused by retinal
degeneration.
2014 Highlights
The company closed a $7 million Series A
fnancing round and secured key intellectual
property from Wayne State University and
Massachusetts General Hospital. It was
selected as a “Top Project to Watch” by
Therapeutic Area Partnerships and received
Orphan Drug designation from USFDA.
Light years beyond the online banner ads
of yesteryear, AdAdapted’s platform brings
ease and scale to integrated advertising and
branded experiences in mobile applications.
From headquarters in Ann Arbor, the company
connects brand advertisers to consumers in
the apps that simplify their lives, including
their favorite grocery lists, organizers and
shopping environments.
2014 Highlights
AdAdapted raised $725,000 in a Seed Round,
with Michigan investors that include BELLE
Michigan and StartGarden, and started
working through agencies with major
national brands like Campbell’s, Bank of
America, and Jimmy Dean.
ANN ARBOR ANGELS
Ann Arbor Angels was founded
in 2004 and has evolved into a
member-driven angel investment
organization, comprised of former
CEOs and founders as well as
business and investment leaders
in the Ann Arbor community. We
invest in young companies with
breakthrough products or services.
In addition to providing capital,
we share our expertise, provide
mentoring, and facilitate connections
to the broader marketplace.
www.annarborangels.org
BELLE
MICHIGAN
Our mission
is to provide
superior returns for our investors
while serving the early stage capital
needs of women-led companies.
The companies we invest in will
have access not only to our capital
but to a network of limited partners,
who bring years of experience as
entrepreneurs, professionals, and
corporate executives to support the
success of our portfolio companies.
www.michbelles.com
BLUEWATER ANGELS
INVESTMENT NETWORK
The BlueWater Angels Investment
Network is a private for-pro?t
organization established to provide
members a signi?cant return on
equity investments. While providing
risk capital to promising businesses,
we recognize the value of supporting
and nurturing the entrepreneurial
community for the economic
bene?t of our region and the State
of Michigan.
www.bluewaterangels.com
BELLE Michigan
focuses on investing
in women owned
businesses in
Michigan!
Featured Angel-Backed Companies in Michigan
A
n
g
e
l
C
a
p
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t
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i
n
M
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c
h
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g
a
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MVCA 2015 VENTURE CAPITAL REPORT 28
Angel Groups in Michigan, continued
Tetra Discovery Partners designs drugs
to restore clarity of thought in patients
sufering from Alzheimer’s disease,
schizophrenia or traumatic brain injury.
Its novel, frst-in-class therapy for improving
learning and memory will enter human
clinical trials in 2015.
2014 Highlights
Tetra raised $2 million from private
investors to leverage $15 million in funding
through the National Institutes of Health;
current Michigan investors include Grand
Angels, Muskegon Angels, Invest Michigan,
SPARK, and Western Michigan University’s
Biosciences Research & Commercialization
Center.
Blaze Medical Devices develops technology
for analyzing damage to red blood cells
from medical devices/drugs, storage, or
disease. Blaze hopes to ofer initial versions
of its testing systems as a much-awaited
tool in many areas of industrial R&D and
product design as well as basic science and
clinical research.
2014 Highlights
Blaze Medical Devices received a NIH/
NHLBI SBIR Phase 1 grant and secured
international patents and trademarks.
The company is backed by angel investors
and the Michigan Pre-Seed Fund.
GRAND ANGELS
Grand Angels will make investments
that will have a positive effect on
our region through business growth,
job creation, and the retention of
local talent. Through mentoring,
strategic advice, expanding
networks, and connections to
customers, management and
venture capital, Grand Angels
investments fuel the entrepreneurial
economy of innovative companies
throughout Michigan.
www.grandangels.org
GREAT LAKES ANGELS
Great Lakes Angels focuses on
providing funding to capital-
ef?cient early-stage companies
located in Midwest. We are open
to pre-revenue companies that
are close to revenue and can
demonstrate strong potential
customer interest.
www.glangels.org
ONL Therapeutics (ONL) is a
biopharmaceutical company committed
to protecting and improving the vision of
patients with a range of retinal diseases and
conditions. Its breakthrough technology
is designed to protect photoreceptors
against programmed cell death, the root
cause of vision loss and the leading cause of
blindness.
2014 Highlights
ONL closed a $1 million Seed Stage funding
round, including support from Capital
Community Angels, and received $1.5
million in grant funding from National
Eye Institute with Michigan ETF matching
funds. The company appointed several
new executives and was invited to present
at the Ophthalmology Innovation Summit
@ AAO, an event for ophthalmic investors,
entrepreneurs, physicians and pharma
leadership.
CAPITAL COMMUNITY ANGELS
Capital Community Angel Investors
is a nonpro?t organization that
seeks to introduce quali?ed
entrepreneurs to its member
investors. The group looks for
Michigan-based “disruptive”
early stage investments that offer
sustainable competitive advantage.
www.ccangels.org
Angel-Backed Companies in Michigan
MVCA 2015 VENTURE CAPITAL REPORT 29
Combining Italian artistry, craftsmanship
and design with disciplined Midwestern
manufacturing methods, American Glass
Mosaics operates the only full scale formed
glass mosaics factory in the United States.
Its formed mosaics are made with 100%
recycled glass and are manufactured exclu-
sively in West Michigan.
2014 Highlights
American Glass Mosaics, backed by the
Muskegon Angels, began operations in
2014, creating over 700 colors and styles of
mosaics along with its frst two collections.
Additionally, more than 25 distributors, cov-
ering a majority of major U.S. metropolitan
areas plus Great Britain and Canada, carry or
will carry the company’s product line.
Taking plastic utensils of the table and
replacing them with a stylish, afordable
silicone alternative is the aim of Silikids,
founded by two mothers in search of
non-toxic, hypoallergenic tableware
products for kids.
2014 Highlights
Silikids, a winner of several “green” product
awards, debuted its patented Siliskin,
a shock absorbing silicone sleeve used
to cover various glassware and ceramic.
The company closed a $400,000 funding
round and expanded its international and
national distribution.
ECO Fueling provides a fuel injection system
for diesel engines that improves engine
efciency and emissions. The system
increases engine torque and horsepower
through proprietary controls algorithms.
2014 Highlights
After raising most of a $1 million seed
round in 2014, the company is now
pursuing new investors to close the round.
Its successful customer pilot program is
yielding double-digit fuel economy gains,
and a due diligence report on its intellectual
property estate resulted in the submission
of new inventive claims.
MICHIGAN ANGEL FUND
Michigan Angel Fund focuses on
providing funding to capital-ef?cient
early-stage companies located in
Michigan. We work closely with
other stakeholders in the Michigan
entrepreneurial ecosystem to
ensure that we invest in the most
promising companies and to
ensure the future success of these
companies and our investments.
www.miangelfund.com
MUSKEGON ANGELS
The Muskegon Angels is a
member-led organization
committed to ?nding, funding,
and mentoring great young
companies from pitch through a
successful exit. Our priority is job
creation, with a particular emphasis
on Muskegon-area development.
www.muskegonangels.com
NORTHERN MICHIGAN ANGELS
Northern Michigan Angels is a
premier network of successful
entrepreneurs and business leaders
in Northern Michigan who provide
accredited investment capital,
strategic advice, and mentoring to
early-stage companies. The mission
of the network is to help grow the
economic base of the region and to
provide members an outstanding
?nancial return on their time and
invested capital.
www.northernmichiganangels.com
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KATHRYN
CHRISTOPHER,
GRAND VALLEY
STATE UNIVERSITY
Before coming to Grand
Valley, I had a hard time
visualizing my career path.
I knew that I was creative and
good at science and math,
but I wasn’t sure how I might
practically apply those skills and interests in the work world.
Grand Valley allowed me to explore innovation and product
development through classes in the College of Engineering,
and my internal drive helped me to continue working on
these projects even after my classes were complete.
Through this work, I was connected to the The Richard
M. and Helen DeVos Center for Entrepreneurship and
Innovation (CEI) in the Seidman College of Business,
a champion and catalyst for student-entrepreneurs which
provides us with guidance, resources, funding, and, most
importantly, a support system. The bene?ts I received
from my experiences at CEI not only increased my
self-con?dence but they also increased the expectations
I had for myself. I knew that with the knowledge, resources,
and entrepreneurial support system at GVSU, I could
do anything.
I now know exactly what my ideal job is and how to
accomplish my dream of getting there. I have no doubt
that using the education, resources, and encouragement
I received through the entrepreneurial ecosystem at GVSU,
I will be able to successfully develop my own business.
Grand Valley has truly started an innovative spark in Grand
Rapids, and I could not be more thankful to be a part of it.
A rich startup culture is now ?rmly engrained in Michigan, and it hasn’t taken long for that spirit
of innovation and risk-taking to permeate out to Michigan’s universities, where entrepreneurship
is more than a class. Fueled by hackathon weekends, inter-department entrepreneurial
programs and student incubators, Michigan college students can now launch a business or test
the waters of a career in venture investing from within the supportive con?nes of the academic
setting, without sacri?cing their entrepreneurial ambitions for a college degree.
We asked students from ?ve Michigan universities to describe, in their own words, how
the entrepreneurial environment at their university has impacted their studies, personal
expectations, and future career aspirations. These students’ experiences, and those of hundreds
more Michigan students like them, provide a hopeful glimpse into the
promising future of entrepreneurial and venture activity in Michigan:
DAVID KIRCOS,
MICHIGAN STATE
UNIVERSITY
I started my entrepreneurial
journey during my junior year
at Michigan State University,
when I attended an event called Startup Weekend, a transfor-
mative 54-hour whirlwind where entrepreneurs and aspiring
entrepreneurs can ?nd out if startup ideas are viable. There,
I saw my ?rst business pitches, learned about venture capital,
and hacked together a working product in one short weekend.
I didn’t know it at the time, but this event was a tipping point
for me and I would never look at a job the same way again.
I became fascinated by startups,
obsessed with learning what
made them work. The next
summer I became an intern
at Detroit Venture Partners,
an early-stage venture ?rm that
focuses on technology startups.
Looking through the eyes of a
venture capitalist made me view
startups in a new light and gain a new appreciation for the
amount of effort involved in building a new business. The
most valuable part of the internship was being able take
my questions to real VCs. This fed my appetite for business
knowledge much faster then reading blogs or books, and for
the ?rst time I knew what I wanted to do after I graduated.
Two years ago I thought ?nding a ?nd a job at a place like
Google or Wolfram Research was what I wanted. Now I know
I will start my own company within four years of graduation.
Innovative businesses and their founders are driving the
biggest changes in Michigan’s economy and venture capital
is bringing many of those companies to life. I can’t wait to
join their ranks.
3 0 MVCA 2015 VENTURE CAPITAL REPORT
Entrepreneurial Activity Humming
Across Michigan’s Universities
TROY PRILL,
CENTRAL MICHIGAN
UNIVERSITY
I wandered into the Central
Michigan University
entrepreneurship department
as a freshman looking for someone to talk
to about business ideas. Four years later, I
am graduating with a degree in ?nance and
successfully run two startups, thanks to the
support and guidance of the faculty, students
and alumni of CMU.
Central Michigan University has encouraged
me to look at life through a disruptor’s perspective, and to
follow my passions through to business launch by using tools
learned in accounting and management courses, among
others. Every interview I have focuses on my startup businesses
and the opportunities that Central Michigan has given me,
including my experience in programs like the New Venture
Competition (where CMU students from any discipline can
create a business, learn from experts, and earn capital).
I have found my drive and my passion: launching and running a
startup company. At the end of my time here, I am able to look
back and realize how much I have truly grown since the start of
my career as a Chippewa and an entrepreneur.
JAMARR HILL, WAYNE
STATE UNIVERSITY
Before attending WSU,
I assumed entrepreneurship
was for college graduates or the eccentric. Despite growing
up with self-employed parents who showed me the value of
working for yourself, it just didn’t register at the time that
I had the acumen to be an entrepreneur. After leaving the
military, I decided to attend WSU and found Blackstone
Launchpad (BLP), which offers career guidance, resources,
and advice to entrepreneurs, innovators, and inventors at
Wayne State University.
At BLP I was introduced to the ideas of synergy, leverage
and execution. This changed my mentality about what
being an entrepreneur entailed and I decided to start my
own journey in self-employment. My startup, Transwer,
is a mobile application aimed at helping Detroit residents
who depend on public transportation. My app helps people
connect to opportunities and get to their destination, not
unlike how BLP and Wayne State has helped me realize my
entrepreneurial dreams.
MATT ROSS, UNIVERSITY OF MICHIGAN
At my pre-school graduation, when asked what I wanted to be when I grew up, I exclaimed
“A chemist! Or a Ninja Turtle.” Dreams of becoming a giant turtle fell by the wayside, but I did
stay interested in engineering and creating new things.
The ?rst organization I joined at U-M was the Zell Lurie Commercialization Fund, a pre-seed
investment fund established to identify and accelerate the commercialization of ideas
generated within the University community and the surrounding area. As a seed investor on the
technology team, I was given the opportunity to
contact the founder of a business completing
its Series A funding round. I asked him tough questions on behalf of our Fund,
ranging from why they have not made traction with certain strategic partners
to why their cost-per-click rates were what they were. I got the rare chance to
try on the shoes of a venture capitalist and saw I could walk in them. I pivoted
my career search and am now trying to break into the VC world.
During U of M’s annual Design + Business and West Coast Forum trip I was
able to tour Google Ventures and conduct informational interviews with three
venture ?rms. Among them was a startup technology company bridging the
gap between private equity and public investing, a ?rm that has become
a target in my post-graduation job search. Without my experience at Ross
School of Business at U-M, I never would have had the courage to go down
this path. While I may not be on track to be a Ninja Turtle, this Wolverine is
de?nitely on his way to being part of the innovation economy when he “grows up.”
31 MVCA 2015 VENTURE CAPITAL REPORT
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Michigan’s Growing Presence in the National Landscape
Since 2010, Michigan has positioned itself as a state of innovation that has created an attractive
environment for entrepreneurs. Relative to the national landscape, from 2010 – 2015, the Michigan
venture capital community has demonstrated strong growth, while the national VC landscape has
slowed or contracted over the same time period.
NATIONAL VENTURE CAPITAL STATISTICS
2010 2011 2012 2013 2014
Number of VC Firms in Existence 853 881 883 874 803
Number of Investment Professionals 6,328 6,231 5,887 5,891 5,680
Total Capital Under Management ($B) $185 $199 $200 $193 $157
Average Venture Capital Under Management
per Firm ($M) $216.5 $226.2 $226.7 $220.7 $194.9
Average Venture Capital Fund Size ($M) $144.5 $149.3 $150.1 $144.9 $129.8
MICHIGAN VENTURE CAPITAL STATISTICS*
2010 2011 2012 2013 2014
Number of VC Firms in Existence 19 20 20 23 26
Number of Investment Professionals 53 60 60 81 102
Total Capital Under Management ($B) $1.2 $1.5 $1.5 $1.6 $1.7
Average Venture Capital Under Management
per Firm ($M) $74 $75 $75 $72 $67
Average Venture Capital Fund Size ($M) $40 $41 $43 $42 $38
FIVE YEAR TRENDS
37%
92%
45%
-5%
-6% -15%
-10%
-10%
Michigan National
Avg. Venture Capital
Fund Size ($M)
# of VC Firms
in Existence
# of Investment
Professionals
Total Capital Under
Management ($B)
Source: National Venture Capital Association
Source: Michigan Venture Capital Association, *This data represents venture ?rms headquartered in Michigan
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Research
Michigan has the highest research spending-to-
venture capital investment ratio in the nation.
For every $1 invested in venture capital in the state, $149 is
invested in research in Michigan. The resulting discoveries
and technology can be commercialized to a much greater
extent than is happening now, creating a fertile ground for
venture capital investment activity.
The Michigan Opportunity
Venture capital activity in Michigan has grown tremendously in the last decade. In 2014, $219
million in venture capital was invested in Michigan startups, a 97% increase in capital invested
compared to the previous year.
Nationally Michigan ranks 21st in venture capital invested and MVCA believes there is additional
investment opportunity based on three key indicators: research spending, number of PhDs in
science and engineering, and the number of invention patents issued.
STATE VC Invested
CA $27,151,513,000
MA $4,678,599,700
NY $4,263,917,000
TX $1,506,448,000
WA $1,246,773,300
IL $1,069,269,700
FL $862,460,900
UT $800,996,600
CO $793,054,800
PA $774,665,400
CT $521,384,800
GA $495,851,800
VA $475,986,300
MN $368,434,800
MD $363,462,400
NC $341,541,500
NJ $320,431,700
OH $268,686,800
AZ $257,026,000
DC $242,247,100
MI $218,983,000
Investment in Research for every
STATE dollar of Venture Capital invested
MI $ 149
MD $ 117
NJ $ 111
OH $ 85
NC $ 57
AZ $ 56
VA $ 53
MN $ 42
PA $ 39
CT $ 35
IL $ 31
DC $ 31
WA $ 30
TX $ 30
GA $ 25
FL $ 21
CO $ 20
UT $ 10
NY $ 9
MA $ 9
CA $ 7
Source for this graph: PricewaterhouseCoopers/National
Venture Capital Association
MoneyTree™ Report, Data:
Thomson Reuters Investments by State 2014
Source for this graph: National Science Foundation/National Center for Science and
Engineering Statistics.
MVCA 2015 VENTURE CAPITAL REPORT 35
Talent
Michigan has the 7th highest number of PhDs in
science and engineering. For every 100,000 Michigan
residents, 13 have PhDs. Not only are these PhDs more likely
to launch a startup company to commercialize their research,
this high proportion of PhDs mean Michigan startups have
abundant access to a talent pool that can advise and advance
the company’s product or service offering.
Ideas
Michigan ranks 6th nationally in the number of
invention patents issued (aka utility patents), making
it one of the most idea-rich states in the nation. Many of
these innovations have commercial applications that lead
to new business creation, fueling an increase in need for
early-stage capital. That demand now greatly surpasses the
amount of venture capital available in Michigan.
# of PhDs for every
STATE 100,000 people
DC 56
MA 30
NY 26
MD 15
CT 14
PA 13
MI 13
UT 13
IL 13
MN 12
CA 12
VA 12
CO 12
NC 11
OH 10
TX 10
GA 9
AZ 9
WA 8
NJ 8
FL 7
# of Utility Patents
STATE (ie. Patents for Invention)
CA 36,193
TX 9,222
NY 8,489
MA 6,409
WA 5,878
MI 5,119
NJ 4,717
IL 4,644
MN 4,292
PA 3,961
FL 3,953
OH 3,689
NC 3,143
CO 2,793
GA 2,505
AZ 2,225
CT 2,168
VA 1,886
MD 1,748
UT 1,228
DC 133
Source for this graph: National Science Foundation/National Center for Science
and Engineering Statistics And U.S. Department of Commerce, Bureau of the Census.
Population Division
Source for this graph: National Science Foundation/National Center for Science
and Engineering Statistics And U.S. Department of Commerce, Bureau of the Census.
Population Division
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MVCA Staff
MAUREEN MILLER BROSNAN
Executive Director, Michigan Venture Capital Association
Maureen has 27 years experience in the non-pro?t sector. As the Executive Director
of the Michigan Venture Capital Association she oversees the organization’s strategy
and direction, and creates awareness of and support for Michigan venture capital
?rms and activity. In addition to her role at MVCA, Maureen is currently president
of the Livonia City Council and has served on the city council for almost 16 years.
She is also chair of the board of directors of St. Mary Mercy Hospital in Livonia,
Mich., and is a member of the executive committee of the Board of Directors of the St. Joseph Mercy Health System.
She is a former member of the Michigan State Transportation Commission where she chaired the audit subcommittee.
She served on the executive team for Governor Jennifer Granholm’s 2002 campaign and as the campaign manager in Judge
Connie Kelley’s statewide race for the Michigan Supreme Court in 2012.
Brosnan is a graduate of Central Michigan University, where she earned a bachelor of applied arts degree in journalism
and public relations.
EMILY HEINTZ
Associate Director, Michigan Venture Capital Association
With a background in economic development, capital markets, and ?nance, Emily
Heintz brings technical and practical expertise to her role as Associate Director
of the Michigan Venture Capital Association. Heintz supports Michigan’s vibrant
venture capital community by developing the MVCA Research Report, planning
educational and networking events, managing talent programs, and advocating for
Michigan’s entrepreneurial community.
Prior to joining the MVCA in 2013, Heintz was a Capital Markets Associate at the
Michigan Economic Development Corporation. She designed, implemented and managed the MEDC’s capital markets
programs, including the 21st Century Investment Fund, Accelerator Funds, Venture Development Fund, EB-5 Immigrant
Investor Program, Urban Investment Program, and direct investments made in venture capital ?rms around the state.
Earlier, Heintz was the Accounting Manager at Ann Arbor SPARK, a non-pro?t economic development organization aimed at
establishing the Ann Arbor region as a destination for business expansion, retention, and location by identifying and meeting
the needs of business at every stage. She also worked as an auditor with Plante Moran, the 13th largest certi?ed public accounting
and business advisory ?rm in the United States offering audit, accounting, tax and business advisory consulting services.
Heintz holds both a Bachelors of Arts and Masters of Science in Accounting from the Michigan State University.
JENNIFER ROMBERG
Communications and Events Manager, Michigan Venture Capital Association
Jennifer Romberg is a graduate of the University of Michigan Ford School of
Public Policy and comes to the Michigan Venture Capital Association with
experience managing political campaigns. As the Communications and Events
Manager of the MVCA, she will carry over her project management skills to
ensure that MVCA events continue to be successful and help the organization
build a stronger investor network in Michigan.
MVCA 2015 Board of Directors
EXECUTIVE COMMITTEE
Chairman
Jim Adox
Managing Director
Venture Investors
Treasurer & Chairman-Elect
Tony Grover
Managing Director
RPM Ventures
Outgoing Chairman
Tim Petersen
Arboretum Ventures
STAFF
Maureen Miller Brosnan
Executive Director
Emily Heintz
Associate Director
Jennifer Romberg
Communications and Events Manager
BOARD OF DIRECTORS
Hugo Braun
North Coast Technology Investors
Mark Horne
Plymouth Ventures
Sara Kruse
Jaffe Raitt Heuer & Weiss
Jon Lauckner
GM Ventures
Jeff Rinvelt
Renaissance Venture Capital Fund
Skip Simms
Ann Arbor SPARK
Paula Sorrell (observer)
Michigan Economic Development
Corporation
Josh Beebe
MK Capital
Patti Glaza
Detroit Innovate
Mark Olesnavage
Hopen Life Sciences Ventures
Ted Serbinski
Techstars
Jody Vanderwel
Grand Angels
Ryan Waddington
Arsenal Ventures
MVCA 2015 VENTURE CAPITAL REPORT 37
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Education and Outreach
The MVCA facilitates the
development of a strong network
within the Michigan venture capital
community and builds connections
with out-of-state angel and venture
investors through targeted meetings and events. MVCA staff
attends local and national industry conferences to advocate
for the Michigan investment community.
• Networking Receptions & Events: The MVCA hosts a
series of networking events around the state focused on
building a stronger investor network within the state.
The most popular of these events each year is the MVCA
Annual Awards Dinner, which highlights venture capital
successes from the prior year. In 2014, a record crowd
recognized several exceptional portfolio companies and
their investors for achievements in fundraising, exit size
and product growth. The evening also honored 2014
MVCA Lifetime Achievement Award Mike Finney, CEO
of the Michigan Economic Development Corporation.
MVCA advocates, builds relationships, and
sponsors programs that further the interests
of its members.
Bucking national trends toward declining venture capital
activity, Michigan has enjoyed consistent, steady growth in
venture capital investment, number of venture capital ?rms,
and numbers of investment professionals. Michigan’s
burgeoning community of entrepreneurs, venture capital
?rms, and angel networks has created an environment ripe
with demand for the programs and services the MVCA
offers. Successful exits have matured founders into serial
entrepreneurs, inspiring
repeat investments and
encouraging sustained
innovation in diverse,
cutting-edge technology
sectors.
Advocacy
Core to the MVCA’s
mission is serving as the
statewide voice for
Michigan’s growing
venture capital industry.
To advance this objective,
the MVCA educates,
advocates and
communicates to
legislators, the media
and the general public on entrepreneurial investment
opportunities, challenges, and successes in Michigan.
An annual legislative outreach day is just one of the many
MVCA advocacy activities.
Michigan Venture Capital Association
CREATING AND SUSTAINING A VIBRANT VENTURE CAPITAL COMMUNITY IN MICHIGAN
The Michigan Venture Capital Association is a catalyst for building a strong, diverse, and
entrepreneurial ecosystem in Michigan.
MVCA represents venture capitalists, angel investors, industry service providers, economic devel-
opment organizations and higher-education institutions – all working together to create new business
opportunities and foster Michigan’s growing role as a center of innovation, entrepreneurship, and
company creation.
MVCA at the 2014 Mackinac
Policy Conference
2014 Outreach Trip
to Washington DC
MVCA Networking Session
2014 MVCA Annual Awards Dinner
• Immersion Days:
Out-of-state investors come to Michigan for an all-day
series of meetings, tours, and social events custom-
designed to meet their informational needs by the
Michigan venture community. Investors obtain ?rst-hand
knowledge of the wealth of resources, partnerships and
entrepreneurial ideas available in the state.
Immersion Days
• Outreach Visits:
Through targeted meetings with out-of-state investors,
MVCA communicates key research report outputs,
opportunities and successes and builds relationships to
be leveraged by Michigan investors. These out-of-state
investors are invited to networking events in Michigan to
increase collaboration with angel and venture investors.
Annual Research Report
MVCA develops and distributes an annual research report,
which is a comprehensive summary of venture capital
investment activities across Michigan. MVCA works with the
National Venture Capital Association, Thomson Reuters and
PricewaterhouseCoopers
to analyze Michigan
activities relative to
national trends. The
research report is the
critical source of
quantitative information
used to drive initiatives
to grow the venture
capital community.
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ADRIAN FORTINO
“I spent several years as a
venture backed entrepreneur
prior to becoming a Venture
Fellow, so I was very familiar
with the industry. While we’ve
had a successful launch for
Detroit Innovate, I’ve found that
fundraising for a venture fund
can be just as challenging as it
was when I was running my companies.”
Michigan Venture Capital Association
CREATING AND SUSTAINING A VIBRANT VENTURE CAPITAL COMMUNITY IN MICHIGAN
Talent Programs
MVCA offers the Michigan Venture Fellows Program and
the Executive Attraction Program, both funded by the
Michigan Economic Development Corporation.
These programs have
played a critical role in
building Michigan’s
entrepreneurial
ecosystem and help our
members attract the best
talent to their ?rms and
portfolio companies.
• The Michigan
Venture Fellows
Program: This
program is designed
to increase the number of venture professionals in
Michigan, in order to accelerate the fundraising and
deployment of capital into early-stage companies.
Venture Fellows are hired for two years by a Michigan-
based venture ?rm and expected to continue their
careers with the ?rm after the fellowship. Grants for the
program are leveraged against salary contributions from
venture ?rms.
Congratulations Venture Fellow Graduates!
JARED STASIK
“Michigan is home for me,
and the MVCA Venture Fellows
program helped me make the
transition home from California.
I was lucky enough to join Detroit
Venture Partners just as the Fund
was making its frst investments.
I loved the entrepreneurial
environment, and even more so,
I loved that everything we did was directly impacting Detroit.
I’m looking forward to continuing to help Detroit Venture Partners
and our more than 20 startups in every way that I can.”
LINDA CHAMBERLAIN
“The process of venture
investing ofers the honor of
sharing in the big vision of the
entrepreneur, as well as the
practical roadmap on how they
are going to make it happen.
It afords – at least at that frst
pitch! – the time to refrain
from applying objective flters,
applaud the dream, and for me, exercise my inner technology geek
and get excited about the commercial possibilities!”
SAM HOGG
“I learned during my Fellowship
how much the people matter
in this industry. You envision
venture capital as picking
winning ideas, but A teams with
B technologies will outperform
the opposite every time. It
makes you realize that successful
VC frms aren’t necessarily the
ones that have the smartest people, but rather the ones that have
surrounded themselves with networks for success.”
WILLIAM BLAKE III
“Following my fellowship, I have
been aforded the opportunity
to remain with Beringea
and I am looking forward
to continuing to invest and
manage the Michigan Growth
Capital Partners series of funds.
I have enjoyed being a part of
the wonderful culture and work
environment Beringea has developed and am anxious to participate
in Beringea’s promising future.”
MVCA 2015 VENTURE CAPITAL REPORT 41
• The Executive Attraction Program: Entrepreneurial
executives are crucial to supporting the continued growth
of technology-based businesses and jobs in Michigan.
While there is an increasing group of experienced startup
executives located in Michigan, the state lacks a deep
pool of executives with experience leading angel or
venture-backed companies. The MVCA Executive Attraction
Program helps companies recruit high-quality candidates
through a matching grant program designed to increase
the number of portfolio companies in Michigan.
Congratulations to our Newest Executive Attraction
Professional!
DANIEL RATLIFF
“The Fellows program seemed
like a great opportunity to get
involved in the venture capital
community, particularly as a
younger professional. Having
lived in downtown Detroit over
the past few years, I’ve seen a
lot of traction in the startup
community and the growing
number venture investors, particularly in Detroit and Ann Arbor,
and the Fellows program ofered a unique way for a young pro-
fessional like myself to connect with a frm like Fontinalis that was
seeking to add a new member to their investment team to support
the frm’s growth.
SHANE BLIEMASTER
“Nutshell is a cloud-based
Customer Relationship
Management platform that
was started with a small seed
investment, and the team
focused intently on building the
best product. They’ve grown
without any marketing, so being
able to build on that is exciting.
I feel incredibly lucky and excited to have the opportunity to join
such a talented team in Michigan where my skills can contribute to
building something great.”
Welcome New 2014 MVCA Venture Fellows!
KATHRYN GARDNER
“There are many attractive
aspects of venture capital, but
what really hooked me was
the opportunity to help invest
in life-changing technologies.
I believe that the best way to
grow the economy is to build
small businesses and provide
them pathways for success that
otherwise wouldn’t be available to them. I am looking forward to
developing in my role as an analyst and contributing to the venture
capital community in Michigan. “
REDA JABER
“I chose to pursue a career
in healthcare venture capital
because I felt that I could make
a signifcant impact on patient
lives, on a large scale, in this
role. I hoped to be able to build
my career as a venture capital
professional in my home state
of Michigan, and the MVCA
Venture Fellows program allowed me to do that. I’m looking for-
ward to contributing to the stellar team at IncWell where I can help
grow exciting early-stage healthcare startups that have the highest
potential to make a systemic impact on patient care.”
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VENTURE CAPITAL FIRMS WITH
HEADQUARTERS IN MICHIGAN
APJOHN VENTURES
350 East Michigan Avenue
Suite 500
Kalamazoo, MI 49007
ARBOR PARTNERS
535 West William Street
Suite 303
Ann Arbor, MI 48103
ARBORETUM VENTURES
303 Detroit Street
Suite 301
Ann Arbor, MI 48104
AUGMENT VENTURES
206 South 4th Avenue
Ann Arbor, MI 48105
BERINGEA, LLC
32330 West 12 Mile Road
Farmington Hills, MI 48334
BIOSTAR VENTURES
560 West Mitchell Street
Suite 500
Petoskey, MI 49770
CASCADE PARTNERS
29100 Northwestern Highway
Suite 405
South?eld, MI 48034
DETROIT INNOVATE
600 Renaissance Center
Suite 1710
Detroit, MI 48243
DETROIT VENTURE PARTNERS
1555 Broadway Street
Detroit, MI 48226
EDF VENTURES
425 North Main Street
Ann Arbor, MI 48104
FIRST STEP FUND
600 Renaissance Center
Suite 1710
Detroit, MI,48243
FONTINALIS PARTNERS, LLC
1 Woodward Avenue
Suite 1600
Detroit, MI 48226
HOPEN LIFE SCIENCE VENTURES
171 Monroe Avenue NW
Grand Rapids, MI 49504
HURON RIVER VENTURES
303 Detroit Street
Suite 100
Ann Arbor, MI 48104
INCWELL
110 Willits Street
Birmingham, MI 48009
LUDLOW VENTURES
1555 Broadway
Detroit, MI 48226
MICHIGAN ACCELERATOR FUND-I
140 Monroe Center NW
Suite 300
Grand Rapids, MI 49503
MICHIGAN ELAB
505 East Liberty Street
LL500
Ann Arbor, MI 48104
NORTH COAST
TECHNOLOGY INVESTORS
206 South Fifth Avenue
Suite 550
Ann Arbor, MI 48104
PLYMOUTH VENTURES
555 Briarwood Circle
Suite 210
Ann Arbor, MI 48108
RESONANT VENTURE PARTNERS
617 Detroit Street
Suite 110
Ann Arbor, MI 48104
RPM VENTURES
320 North Main Street
Suite 400
Ann Arbor, MI 48104
START GARDEN
40 Pearl Street
Grand Rapids, MI 49503
TGAP VENTURES
7171 Stadium Drive
Kalalmazoo, MI 49009
WOLVERINE VENTURE FUND
701 Tappan Street
R3200
Ann Arbor, MI,48104
VENTURE CAPITAL FIRMS WITH
OFFICES IN MICHIGAN
ARSENAL VENTURE PARTNERS
303 Detroit Street
Suite 100
Ann Arbor, MI 48104
MEMBER DIRECTORY
MVCA 2015 VENTURE CAPITAL REPORT 43
BAIRD CAPITAL
425 North Main Street
Ann Arbor, MI 48104
CULTIVIAN SANDBOX
VENTURES
303 Detroit Street
Suite 101
Ann Arbor, MI 48104
DRAPER TRIANGLE VENTURES
303 Detroit Avenue
Suite 100
Ann Arbor, MI 48104
EARLY STAGE PARTNERS
201 South Main Street
Ann Arbor, MI 48104
FLAGSHIP VENTURES
122 South Main Street
Suite 230
Ann Arbor, MI 48104
FLETCHER SPAGHT VENTURES
460 Hillspur Road
Ann Arbor, MI 48105
MERCURY FUND
303 Detroit Street
Suite 100
Ann Arbor, MI 48104
MK CAPITAL
535 West William Street
Suite 303
Pinckney, MI 48103
OPEN PRAIRIE
241 East Michigan Avenue
Kalamazoo, MI 49007
VENTURE INVESTORS
201 South Main Street
Suite 900
Ann Arbor, MI 48104
OUT OF STATE VENTURE
CAPITAL MEMBERS
ALLOS VENTURES
120 East Eighth Street
Fourth Floor
Cincinnati, OH 45202
HYDE PARK VENTURES
225 West Washington Street
Suite 1500
Chicago, IL 60606
NERVEDA, LLC
3888 Quarter Mile Drive
San Diego, GA 92130
RIVER CITIES CAPITAL FUND
221 East Fourth Street
Suite 2400
Cincinnati, OH 45202
5AM VENTURES
Waltham Woods Corporate Center
890 Winter Street
Suite 140
Waltham, MA 02451
CORPORATE VENTURE
DOW VENTURE CAPITAL
1320 Waldo Avenue
Dorinco 100 Building
Midland, MI 48642
GM VENTURES
Mail Code 482-C37-D99
300 Renaissance Center
Detroit, MI 48265
FUND OF FUNDS
GROSVENOR CAPITAL
MANAGEMENT, LP
260 East Brown Street
3rd Floor
Birmingham, MI 48009
RENAISSANCE VENTURE
CAPITAL FUND
201 South Main Street
10th Floor, Ann Arbor, MI 48104
ANGEL GROUPS/NETWORKS
AND PRESEED FUNDS
ANN ARBOR ANGELS
125 South Fifth Avenue
Ann Arbor, MI 48104
www.annarborangels.org
BELLE MICHIGAN
217 Lake Shore Road
Grosse Pointe Farms, MI 48326
313.737.1179
www.michbelles.com
BLUE WATER ANGELS
2007 East Austin Street
Suite M
Midland, MI 48642
989.839.2333
www.bluewaterangels.com
CAPITAL COMMUNITY ANGELS
1881 Ridgewood Drive
East Lansing, MI 48823
517.242.0972
www.ccangels.org
GRAND ANGELS
36 West 8th Street
Suite 200
Holland, MI 49423
616.566.1770
www.grandangels.org
M
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e
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GREAT LAKES ANGELS
568 Woodway Court
Suite 1
Bloom?eld Hills, MI 48302
248.540.3758
www.glangels.org
MICHIGAN ANGEL FUND
201 South Division
Suite 430
Ann Arbor, MI 48104
www.miangelfund.com
MUSKEGON ANGELS
200 Viridian Drive
Muskegon, MI 49440
www.muskegonangels.com
NORTHERN MICHIGAN ANGELS
160 East State Street
Suite 204
Traverse City, MI 49684
231.995.7119
www.northernmichiganangels.com
555 Briarwood Circle, Suite 210, Ann Arbor, 48108
Current Plymouth Ventures II & III Portfolio Companies
Plymouth Ventures is a growth stage venture capital fund that is actively investing
$2 to $6 million in companies throughout the Great Lakes region, with an emphasis
on Michigan. The fund invests in revenue producing companies with the potential
for significant growth through a defined, catalytic event or milestone. With the
successful fundraise for Plymouth Venture Partners III in 2014, Plymouth Ventures
now has over $100 million in committed capital under management.
PRIVATE EQUITY FIRMS
AMHERST FUND
401 East Stadium
Ann Arbor, MI 48104
VALENTI CAPITAL
39400 North Woodward Avenue
Suite 100
Bloom?eld Hills, MI 48304
Let’s talk!
Phone 734-763-0614
Email [email protected]
With over $1 billion invested in U-M startups over the past 10 years
by 30 of the nation’s most successful venture capital ?rms, UM
Tech Transfer is the go-to resource for venture investment deals in
the midwest.
5AM Ventures
Allied Minds
Amherst Fund
Apjohn Ventures
Arboretum Ventures
ARCH Venture Partners
Ardesta
Artiman Ventures
Atlas Ventures
Baird Venture Partners
Beringea
Capital Midwest Fund
Clarus Ventures
Draper Fisher Jurvetson
Early Stage Partners
EDF Ventures
Fidelity Biosciences
First Step Fund
Flagship Ventures
Fletcher Spaght Ventures
Frankel Fund / ZLCF
Frazier Healthcare
Google Ventures
Hatteras Venture
Partners
Huron River Ventures
InterWest Partners
Khosla Ventures
Kleiner Perkins Cau?eld
& Byers
Lerer Ventures
Lightspeed Ventures
Lurie Investments
Mercury Fund
University of Michigan
MINTS
NEA
North Coast Technology
Partners
Northern Light Venture
Capital
ONSET Ventures
Osage University Partners
Plymouth Venture
Partners
Polaris Partners
RPM Ventures
TGap Ventures
Third Rock Ventures
Union Square Venture
Venture Investors
34
ANNIVERSARY
MGCS
MICHIGAN GROWTH
CAPITAL SYMPOSIUM
www.MichiganGCS.com
ZELL LURIE INSTITUTE
FOR ENTREPRENEURIAL STUDIES
CENTER FOR VENTURE CAPITAL
& PRIVATE EQUITY FINANCE
The MGCS is the State’s largest and most highly sought after venture capital
event. It is hosted by the University of Michigan with support from the
Michigan Venture Capital Association. This year marks the 34th edition
of the MGCS. Thank you for making it a success!
330 E. Liberty, Suite 3C
Ann Arbor, MI 48104
Phone 734.585.0324
www.michiganvca.org
doc_300225827.pdf