Venture capital investments in Michigan businesses reach new high in Q3

By Mark Sanchez, MiBiz, October 19, 2015

Venture capital investing hit its highest level ever in Michigan in the third quarter in terms of dollars invested.

Investors put $147.0 million into 16 deals in the August-to-September period, according to the quarterly MoneyTree report from the National Venture Capital Association and PricewaterhouseCoopers. That represents the largest amount invested in a single quarter the state since the NVCA started issuing the MoneyTree report in 1995 and compares with 18 deals for $53.3 million in the third quarter of 2014.

Through three quarters, Michigan had 45 venture capital investments for $280.1 million, which compares to 51 for $223.9 million in the first nine months of 2014. The year-to-date total in terms of dollar value also exceeds all of 2014.

Three deals in southeast Michigan accounted for more than half of the total amount invested during the quarter, according to the MoneyTree report that’s based on data from Thomson Reuters. Those three deals were:

• Delphinus Medical Technologies Inc., a Detroit-based medical imaging company that received $39.5 million from Arboretum Ventures, Beringea LLC, Hopen Life Science Ventures, North Coast Technology Investors LP and Venture Investors LLC
• Ann Arbor-based developer of retinal display devices Avegant Corp., which received $23.9 million from Intel Capital Corp., NHN Investment Co. Ltd.and two undisclosed investors
• Coherix Inc. of Ann Arbor, a supplier of digital and optical-based measurement and inspection products that received $12 million from an undisclosed investor.

West Michigan-based companies that got venture investments in the third quarter include the $5.2 million for Grand Rapids-based Varsity News Network from Arsenal Venture Partners IIA, Michigan Angel Fund, North Coast Technology Investors LP, Start Garden LLC, and an undisclosed firm. Grand Angels, Invest Michigan and two undisclosed investors also invested $1 million into Tetra Discovery Partners LLC in Grand Rapids.