The Ann Arbor-based Michigan Angel Community’s 2018 annual research report found that 859 angels invested $52 million in 84 Michigan companies last year.
Of the companies that received this funding, 15 were women-owned and 13 were minority-owned. Collectively, they employed more than 640 people.
“While the majority of companies that received angel funding were located in Ann Arbor, companies were located across the state, proving that angels are excited about the startups forming in Michigan, generally,” says Skip Simms, managing director of the Michigan Angel Community. “This tells people looking to establish a new business that there’s support and resources to do it successfully here. Angels provide the early stage capital entrepreneurs need to turn their fledgling businesses in to the companies that create the jobs and attract the investment that keep our economy growing.”
Of the companies that received funding, the highest number of them – 43 – were information technology companies. Most of these companies – 93 percent – were software companies, with the remaining offering hardware. The sector received $20.6 million.
Life science companies received the most money, with diagnostics outperforming medical devices and other ventures. It attracted $23.1 million across 27 companies.
Life science also surpassed information technology in total investment raised in 2018, attracting $180 million compared to $38.7 million.
The other sectors that received funding included advanced materials and manufacturing, with eight companies receiving a combined $2 million; mobility, with four companies receiving a combined $2 million, and consumer products, with two companies receiving a combined $4.3 million.
The full report is available here.
The Michigan Angel Community is an initiative to accelerate the growth of angel activity in the state and investment in Michigan companies. It works to educate and expand the base of angel investors in Michigan, hold events and programs, and foster collaboration, affiliation, and social engagement among angels. It is supported by the Ralph C. Wilson Jr. Foundation.