ANN ARBOR — Venture-backed companies and venture capital investments continue their rapid growth in Michigan, according to the annual research report issued Monday by the Michigan Venture Capital Association.
The MVCA’s analysis of venture capital activity in the state shows that the number of investors, the amount invested in Michigan-based companies, and the number of successful, active angel- and venture-backed companies located and hiring in Michigan are all trending upward, showing significant increases in the last five years.
Highlights of the 2015 MVCA Research Report include:
* There are currently 129 venture-backed companies in Michigan, a 70 percent increase in the last five years.
* Michigan venture capital firms invested in 97 percent of all Michigan startups that received any venture capital in 2014.
* Last year, Michigan-based venture capital firms had $1.7 billion in capital under management, an increase of 45 percent in the last 5 years.
* Fifty-one companies in Michigan received more than $204 million from Michigan venture capital firms in 2014. This is an 89 percent increase in the last five years.
* The number of venture capital investment professionals living, working, and investing in Michigan has increased by 98 percent in the last five years.
* The number of venture firms with an office or headquarters in Michigan has increased by 48 percent in the last five years.
* There are currently 214 startup companies in Michigan that have received funding from a Michigan angel group, a 206 percent increase in the last five years.
* In 2014 there were nine Angel Groups in Michigan with 272 Active Angel Investor Members, a 45 percent increase in membership in the last five years.
The report also forecasts a disparity between the demand and the amount of venture capital available for new and follow-on investments in Michigan startups. Founders typically locate and keep their businesses geographically near the sources of the capital they need for growth.
“We’ve spent more than a decade building a venture capital community in Michigan that can support the state’s extraordinary startup companies and contribute to the diverse economy that is crucial to the state post-recession. We’re now at a point where, despite significant increases in venture capital under management at Michigan-based venture firms, it’s still not enough to meet future funding demands by Michigan startups,” said Maureen Miller Brosnan, executive director, MVCA. “In order to continue to have a positive impact on our economy, we must ensure Michigan-based venture capital firms are able to grow their available capital while at the same time able to attract out-of-state venture firms to invest more in Michigan.”
MVCA’s goal is to grow and sustain a vibrant venture capital community in Michigan. MVCA membership includes private and corporate venture capital funds, angel investors, universities and economic development participants, and service providers. More than 400 individuals are members of MVCA, representing over 100 organizations across the nation. For more information, visit www.MichiganVCA.org.