The recently formed Michigan Angel Fund has closed on its first fund and made its first investment this month.
The angel-investment equity fund, which is managed by Ann Arbor SPARK, will provide early stage investments in Michigan-based start-ups. The idea is to help meet the increased need for seed funding from the Great Lakes State's deepening pool of start-ups.
"Entrepreneurship has grown dramatically in the last decade in our state," says Skip Simms, managing member of the
Michigan Angel Fund and a senior vice president at
Ann Arbor SPARK. "The demand for early stage capital has grown with it."
The Michigan Angel Fund has 70 members which have contributed $2 million to its first fund. The fund's first investment went to East Lansing-based BioPhotonics Solutions. The Michigan State University spin-out produces technology that automates the process of shaping and compressing ultrashort (femtosecond) laser pulses, ultimately improving their utility.
Simms expects the fund to make 8-10 investments each year. The average investment will range in size from $250,000 to $700,000.
Source: Skip Simms, managing member of the Michigan Angel Fund
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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