Published in Finance

Report shows fewer VC deals, higher investment statewide in Q2

BY Friday, July 24, 2020 10:22am

A smaller number of venture capital deals were reported across Michigan in the second quarter, though the amount invested increased from a year earlier.

Venture capital groups invested $102.8 million in 18 deals in Michigan from April to June, according to a recent report from the National Venture Capital Association and Pitchbook. That compares with $94.5 million invested in 27 deals in the second quarter of 2018.

Competitive Wedge CEO Matt Baxter. COURTESY PHOTO

Five of the deals involved West Michigan-based companies:

  • $650,000 for HAPPE Spine LLC, a Holland-based startup developing and commercializing a porous, bioactive material for orthopedic implants, and $427,230 raised by Genesis Software Innovations LLC.
  • A $6 million later-stage round that closed June 16 for Portage-based Micro Laser Assisted Machining Technologies LLC, or Micro-LAM.
  • A $1 million later-stage investment that closed in April for Native Traits Corp.
  • $1 million for Competitive Wedge, a Holland company that developed a video platform for recruiters and job candidates to make “authentic connections.”

In a recent news release, Competitive WEdge said the video platform can streamline the process and reduce the time recruiters take to screen applicants. Job candidates can use the platform on any device “that enables them to use the communications medium they’re already familiar with …. to express their interest in the open requisition and company,” the company said.

The investment from angel investors will support the company’s growth, said Competitive Wedge CEO Matt Baxter.

Through the first half of 2020, Michigan recorded 41 deals for $150.5 million. That compares with the 70 VC investments for $161.7 in the first six months of 2019, according to the quarterly Venture Monitor report.

Nationally, venture capital deal flow across the U.S. declined in the second quarter to 2,197 investments for $34.3 billion. That compares to 2,861 deals for $34.8 billion in the prior first quarter, and $36.0 billion invested in 3,102 deals in the second quarter of 2019.

“The massive disruptions roiling across the country have forced venture investors and startups to be agile and adaptable in order to sustain operations, with many difficult decisions being made amid the global pandemic and its economic ramifications,” said NVCA President and CEO Bobby Franklin. “Uncertainty still looms large as we enter the second half of the year, but a strong VC industry along with many startup sectors seeing significant growth offer hope for the country’s path to economic recovery.”

Read 6077 times Last modified on Thursday, 30 July 2020 16:38
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