The venture capital industry’s success over the last decade in Michigan has created a significant challenge as the demand for funding in the next few years far outpaces the availability of capital, requiring a broader approach by managers creating new funds.
Venture capital investors put almost twice the amount of money into Michigan companies in 2014 as they did the year before, continuing the industry’s momentum.
Venture capital deal flow in Michigan in 2014 lags the pace of investment last year, although a single large investment in the spring has the total amount invested through the third quarter exceeding all of last year.
When times were tough, West Michigan advisers found deals were scant and there were but a few investments to arrange.
Grand Angels recently invested in three companies: Ablative Solutions in Kalamazoo, Tetra Discovery Partners in Grand Rapids, and Altus Brands in Grawn, near Traverse City.
A new Kalamazoo-based venture capital fund closed on its first fundraising phase, although organizers hoped by now to have moved closer toward their $10 million goal.
A Kalamazoo-based medical device company is one step closer to launching studies in the U.S. and Europe to test its innovative catheter system in the treatment of severe hypertension.
Two venture capital deals involving West Michigan companies follow a national first quarter trend of investors funding businesses in the later stages of development that have greater capital needs.
Ablative Solutions Inc., a Kalamazoo-based biotech startup developing a new treatment called renal denervation to treat hypertension, raised $9.5 million in a Series B preferred stock offering.
The hand of John Kerschen, managing director of M&A advisory firm The Charter Group in Grand Rapids, has been in 85 transactions in his 17 years at the company, representing a total transaction value of more than $500 million.