Michigan Venture Capital
The Michigan Venture Capital Association touted the continued success of venture backing in the state in a new report, but also warned of gaps in available capital down the line as companies continue to develop and have funding needs.
Michigan venture firms are actively supporting these startups, with local investors involved in 97 percent of all startup-funding rounds in 2014.
At the same time, the number of venture capital professionals living, working and investing in Michigan has doubled and the number of investors in angel groups has grown by 45 percent, all positive signs for the health of the current venture capital field, said Maureen Miller Brosnan, executive director of the Michigan Venture Capital Association.
“I think the key here is we’ve spent more than a decade in Michigan building a venture capital community and we’re starting to see it pay off,” said Brosnan.
The nonprofit trade organization is designed to bring together venture capital industry experts in the state of Michigan.
The forecasted gap in funding comes when members of the Michigan Legislature have proposed phasing out Venture Michigan, a venture capital fund investment program formed under the Michigan Early Stage Venture Investment Act of 2003.
Although she said she understands, Brosnan added that ending Venture Michigan might send the wrong message. Michigan Venture Capital
“These house bills send a message that Michigan is backing up on its commitment to venture capital and, most importantly, entrepreneurs,” she said.
David Brophy, founder of the Michigan Capital Growth Symposium, also says cutting off Michigan Venture Capital now is unwise.
“The idea of working for a big car company and having the UAW bargain for you has receded in significance. Now more people are out starting these companies to make a living,” said Brophy, who is also a professor of finance and the director of the Center for Venture Capital and Private Equity Finance out of the Ross School of Business at the University of Michigan.
Carolyn Cassin, a co-founder and partner of the all-woman angel investing firm Belle Michigan, says one way of improving conditions for venture capital is to cultivate from within, Michigan Venture Capital
“You could find other very wealthy people who have never looked at Michigan and bring them to Michigan. You could find big money, big corporate investors to come here and invest in Michigan,” sad Cassin.
“We should be trying to prove to them and pitch to them the value of these funds being in Michigan. As we do that, more people will be encouraged to start their companies.”
(Credits to Lauren Abdel-Razzaq)
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