In 2017, angels invested more than $41 million in 70 Michigan companies, according to a report released Tuesday by the Michigan Angel Community, a new statewide initiative managed by Spark in Ann Arbor. The company recently completed its first annual research report.
The report details metrics and trends in the state’s angel investment market and community to provide a foundation for future opportunities for angels to collaborate and grow.
The 70 Michigan companies employ more than 500 people and attracted an additional $106 million in funding. A total of 797 angels invested, with a median investment of more than $55,000.
Information technology companies received the most investments, with angels supporting 30 companies. The most angel funding, or $16.6 million, went to 19 life science companies, with devices and diagnostics receiving the majority of the investment. IT startups got $15.5 million. Angel support helped 28 companies in the Ann Arbor area, 17 in west Michigan, 12 in metro Detroit, and 13 across the rest of the state.
“The research report shines a spotlight on not only the economic impact early stage startups have, but also those angels who are choosing to invest in their success,” says Skip Simms, senior vice president of SPARK.
“Without angels, many young companies would struggle to attract capital; angels provide the backing and assurance that enables these businesses to attract follow-on funding that help them hire and bring products and services to market. This cycle is important to Michigan’s long-term success as a destination for entrepreneurs, who can be confident that locating here won’t hamstring their hiring and funding efforts.”
Spark welcomes all current and prospective Michigan angel investors to its inaugural Michigan Angel Community gathering from noon-4 p.m. on May 3 at the Lansing Center.
The Michigan Angle Community is supported by the Ralph C. Wilson Jr. Foundation and will represent and serve all of Michigan’s angel investors and groups. It was designed to help strengthen entrepreneurial investment in the state.
The report is available here.