Venture Capital investment in Michigan is on the rise, bucking a national trend of shrinking VC investment, according to a new report from the Michigan Venture Capital Association.
The report shows Michigan venture capital firms invested $242 million in local start-ups in 2012, allowing the Great Lakes State to jump to from its rank of 25th to 15th in a national venture capital ranking.
"We have had growth with a lot of firms," says Carrie Jones, executive director of the
Michigan Venture Capital Association. "We have had firms from out of state opening up offices here."
The number of venture capital professioals in Michigan has jumped by 53 to 62 over the last two years. In comparison, the pool of national venture capital professionals has shrunk from 6,328 in 2010 to 5,887 last year. Ann Arbor is arguably the de facto capital for local VCs because of its large concentration of venture capital firms that specializes in investing in spin-outs from the University of Michigan in the life sciences, bio-technology and technology sectors.
The total capital under management for Michigan has also spiked over the last two years, going from $1.2 billion to $1.5 billion. The average fund size has jumped by $3 million to $43 million.
"Michigan is a real bright spot for the whole industry," Jones says.
Source: Carrie Jones, 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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