Venture Capital Report: Community Growing in Size, Deals
ANN ARBOR – The Michigan Venture Capital Association recently released its annual research report, which details investment activity across the state. The report also highlights venture capital activity in Michigan compared to other regions and the U.S.
"The data collected in the MVCA research report show that Michigan's venture community is growing, both in size and deals," said Tim Petersen, MVCA board chair. Significant growth – 64 percent – in venture capital under management by Michigan firms is appearing, as well as a trend towards larger fund sizes.
According to the MVCA's research report findings, Michigan start-up companies received $191 million in venture capital investment during 2011. There were 38 total investments, including 22 new companies that received a first round of venture capital funding.
The number of venture firms, investment professionals, and capital under management have all increased. The 54 funds managed by venture capital firms in Michigan had 335 active portfolio companies.
Venture capital under management among firms headquartered in Michigan increased by 64 percent over the last 5 years. Of the $3 billion of venture capital under management, nearly $370 million is available for new investments within and outside Michigan.
In 2011, four Michigan venture capital firms —Arboretum Ventures, Plymouth Venture Partners, MK Capital and Arsenal Ventures – successfully closed their funds, raising a total of $348 million.
Michigan now has six funds that are greater than $100 million. There are eight funds between $50 million and $100 million and 13 funds less than $50 million.
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