Venture Financing for MI Firms Down More Than 41 Percent
Venture capital investment in Michigan-based startups is down 41 percent this year compared to 2010, according to a report released yesterday by the Michigan Venture Capital Association (MVCA). Between January and August 2011, Michigan-based startups had raised $72.5 million in VC financing, compared to $123 million for the same period in 2010, and $91 million for the same period in 2009.
Merrill Guerra, executive director of the MVCA, says the despite the decrease in total year-to-date financings, the number of investments made is on par with the prior two years, indicating lower amounts of venture capital contributed per deal. Two deals in particular raised the dollar total for 2010—$23.5 million raised by EcoMotors and $51 million raised by Cerenis Therapeutics.
“We really feel very confident, especially given what’s going on with the economy,” Guerra says.
According to the report, 13 deals have been financed this year: two in advanced manufacturing, three in alternative energy or cleantech, five in information technology, and three in healthcare or life sciences. The disclosed companies receiving financing include Danotek Motion Technologies, MyBuys, Sunlogics, Intervention Insights, Metabolic Solutions, Lynx Network Group, Accio Energy, Advanced Battery Concepts, Transcorp Spine, and Are You A Human. Five of the companies received venture finance capital for the first time.