Four of the top five investments by venture capital firms in the state went to West Michigan companies in the third quarter.
Venture capital firms in Michigan do better than their counterparts nationally, but women and minorities still account for a small number of investment professionals who work in the industry and the entrepreneurs it supports.
A $3 million follow-on venture capital investment provides growth funding for a Kalamazoo company that offers high-speed telecommunications services to businesses across the state.
A Kalamazoo-based company that provides high-speed telecommunications services to businesses across the state was among a trio of West Michigan companies to receive venture capital investments in the second quarter.
Venture capital investing in Michigan got off to a strong start in 2014, as the amount invested in the first quarter reached the highest value in 15 years.
As the availability of venture capital increases further in Michigan, investors are steering more money and cutting more deals to invest in technology-based sectors.
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.
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.
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.