The Michigan Angel Community, based in Ann Arbor, released its 2019 annual research report, which shows that 1,322 angel investors pumped $73.6 million into Michigan high-tech startups. The study surveyed angel groups, individual angels, and angel-funded companies.
A total of 106 companies received angel funding. Of these, 23 were women-owned, and 24 were minority-owned. The companies that received angel funding employed more than 950 people. These companies attracted total investment of $226.6 million last year, which includes venture capital on top of the angel dollars.
Most of the companies to receive angel funding were information technology businesses, but life sciences companies received more investment dollars. Angels invested $21.7 million in 51 IT companies and $29.6 million in 31 life sciences companies. Life sciences also surpassed IT in total investment dollars raised, attracting $118.8 million compared to IT’s $54.5 million.
Michigan angels invested $12.7 million in 11 advanced materials and manufacturing companies, $6.4 million in seven consumer product companies, and $3.3 million in six mobility companies. Companies from these industries attracted total investment of $66 million in 2019, which includes venture capital and angel dollars.
The annual report does not include angel investment in traditional, non-tech businesses such as real estate, retail, professional services, and restaurants.
“Since we started publishing this report in 2017, angel activity across Michigan has steadily increased,” says Skip Simms, managing director of the Michigan Angel Fund and senior vice president of Ann Arbor SPARK.
“Our inaugural report discovered 797 angels in Michigan who invested $41.9 million in startups here. This past year, that number swelled to 1,322 angels who invested $73.6 million in Michigan companies. This activity is a testament to the quality of businesses originating here and the support they receive to nurture their long-term growth.”
The full report is available here.
The Michigan Angel Community is an initiative to accelerate the growth of angel activity in Michigan and investment in Michigan companies. It educates and expands the base of angel investors in Michigan, holds statewide events and programs, and fosters collaboration, affiliation, and social engagement among angels. It is supported by the William Davidson Foundation.
For more information on Michigan’s investment community, check out DBusiness magazine’s 2020 Michigan Venture Capital Report, complete with a resource list of angel investors, venture capital firms, and other investment companies, in our January/February 2020 cover story.