Michigan's emerging venture capital community has taken some significant steps forward in the last few years, welcoming a handful of new VC firms and watching one of its star players cross the $100 million mark.
These are among the first fruits harvested from continued work to build up the state's investment community. The Michigan Venture Capital Association looks to continue that with a few new programs focused on growing the state's VC community from the grass roots level, providing funding for firms and opportunities for new venture capitalists to break into the industry.
"There's a lack of talent and capital that exists," says Merrill Guerra, executive director of the
Michigan Venture Capital Association. "This helps these firms fill that need."
The
Michigan Economic Development Corp has awarded $3.1 million to the Michigan Venture Capital Association's new venture programs, Michigan Venture Fellows and Angel Network Growth, along with its popular CEO/Executive In Residence Program. The Michigan Venture Capital Association is accepting applications for all three programs. More information
here.
The Michigan Venture Fellows Program provides participants with a salaried job at a local venture capital firm for 18-24 months. Participants, preferably graduate students with ambitions to work in venture capital, also receive training at the Venture Capital Institute.
"That program is really geared toward growing the next generation of venture capital talent in the state," Guerra says.
The Angel Network Growth Program will award up to $18,000 annually to Michigan-based angel investor groups, such as Ann Arbor Angels or Blue Water Angels. Awards will be determined by the Michigan Venture Capital Association's board of directors. The money is intended to help these groups hire a new staff person/intern, organize an angel education event for members and potential members, organize a network-to-network deal-sharing event, or invest in typical angel investment activity infrastructure like due diligence.
These programs are intended to help keep the momentum for an investment community that is gaining traction in recent years. A number of new venture capital firms have emerged recently, such as Ann Arbor-based
Resonant Venture Partners and downtown Detroit-based
Detroit Venture Partners. A number of established firms have also closed on new investment vehicles, including a $140 million fund for
Arboretum Ventures.
"That's a significant achievement and milestone," Guerra says. "It's important we continue growing our venture capital firms so we can get more over the $100-million mark."
Source: Merrill Guerra, executive director of the Michigan Venture Capital Association
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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