The Michigan venture capital ecosystem benefited from a significant year of investment in start-ups in 2018.
A total of 61 Michigan beginners landed $ 385 million from venture capital firms, according to the Venture Capital Association's annual research report, Ann Arbor, released on Monday.
Compared to last year, 68 beginners received $ 179 million from VC firms based in Michigan, the report says.
The state's capital landscape is growing, but demand for capital investment is essential to help start-up growth.
"For Michigan companies to be at the forefront of innovation, we have high-growth start-up companies, high-tech to build a strong economy in the state," MVCA Executive Director, Ara Topouzian, said in a Monday news statement. "We have the vital components to build a strong enterprise and investment community – talent, research, capital and community – but as these companies reach their next steps in growth, we need extra capital to keep it."
The number of start-ups supported by enterprises in Michigan increased by 37 per cent in the last five years to 140. Of these, 32 per cent were life science companies and 46% were information technology companies.
The current total of $ 3.7 billion managed by VC firms based in Michigan is down 7 per cent in the last five years.
The total funds under the management of university funds and funds related to economic development, which play a fundamental role in giving companies access to capital at their earliest stages, grew by 19 per cent to $ 46.8 million in 2018 from 2017, according to the report.
Angel investments in this access, which reached $ 52 million in 2018, play a vital role, which was raised at 84 starts.
Other highlights of the annual report: t
- The CEO of 18 start-up companies in Michigan, which is a color, runs an increase of 125 per cent over the last five years.
- All $ invested in Michigan startup by VC firm garners $ 7.85 investment from companies that are not based Michigan
- A total of 533 CC firms not located in Michigan have invested in start-ups based in Michigan