We’re proud to introduce our new board chair, Tim Petersen. Tim, who is the managing director at Arboretum Ventures, is responsible for Arboretum’s financial and fund management activities and is a member of its Investment Committee. He has been a venture capital investor for the past 14 years.

Read about Arboretum in a recent Wall Street Journal blog.

“We have the strongest state venture capital association in our region. We’re the envy of our neighbors in this area. My biggest goals are to continue on the momentum we have built over the past ten years in this organization and in this state,” Tim explained, when asked about his goals as board chair.  “We’re rising relative to other states nationwide in terms of venture capital under management in firms headquartered in Michigan.  Michigan is now around 15th in capital under management nationwide, whereas we were consistently outside of the top 20 ten years ago.”

Our Q& with Tim:
What do you think is a trend to watch in terms of VC in 2012?

Nationwide, venture fundraising has been off significantly the past three years.  A lot less capital has been committed to new funds than has been deployed from existing firms, many of which raised those funds in the 2005 to 2007 time period.  That situation cannot last forever.  Hopefully, the overall contraction of the venture industry is reaching a bottom.  As mentioned earlier, Michigan has bucked the nationwide trend pretty well, but ultimately we’re not immune to the broader market.  Big notable exits like the Facebook IPO certainly help.

Why do you think VCs should join MVCA?

Well, we’re pretty fortunate right now in that almost all active VC firms in the state are members.  So, I guess the question is how the MVCA continues to provide value to our members.  One way is through programs that directly benefit our members such as the Michigan Venture Fellows program recently funded by the MEDC, where we are helping member firms identify and hire younger professionals to work within their firms.  The MEDC is very excited by this program, as we are helping to identify and train the next generation of venture capitalists in the state.  We have four member firms participating in the program in 2012, and hope to add six more firms in 2013-2014.

What’s the biggest perk of MVCA membership?

I don’t think I could name just one.  The programs, the networking events, the advocacy we do on behalf of the VC industry at both the state and national level are all important, to name a few.
Are there exciting things going on in Michigan that fellow MVCA members should have on their radars?

I think the depth and breadth of activities are at an all-time high, which is amazing considering the industry is contracting nationwide.  New VC firms being started on both the west and east side of the state.  There are exciting venture-backed companies across different sectors – energy, biotechnology, technology, medical products.

ANN ARBOR, Mich.—The Michigan Venture Capital Association (MVCA) celebrated a year of individual, company, and statewide industry achievement at its Annual Dinner held November 7 at the Inn at St. John’s in Plymouth. Over 145 members of the Michigan venture community attended the evening event, where incoming Chairman Tim Petersen introduced members of the organization’s 2012 Board of Directors. They include:
• Tim Petersen (Chairman), Arboretum Ventures
• Ron Reed (Vice Chairman/Past Chairman), Seneca Partners
• Jim Adox, (Vice-Chairman/Treasurer), Venture Investors
• Jeff Bocan, Beringea
• Hugo Braun, North Coast Technology Investors
• Pete Farner, TGap Ventures
• Mark Horne, Plymouth Management Company
• Tom Kinnear, U-M Ross School of Business Zell Lurie Institute
• Jon Lauckner, GM Ventures
• Chris Rizik, Renaissance Venture Capital Fund
• Skip Simms, Ann Arbor SPARK
• Mina Sooch, Apjohn Ventures
• Jody Vanderwel, Grand Angels
• Ken Van Heel, Dow Chemical Company
• Donald Walker, Arbor Partners

Pete Farner, Mark Horne and Jon Lauckner are new to the board and begin three-year terms while former director John McIlwraith of Blue Chip Venture Company completes his board involvement after a six-year term.

“It was a wonderful evening that really celebrated the best of the best in our industry,” said Merrill Guerra, Executive Director of the MVCA. “We’re pleased so many venture investors, portfolio company executives, development officials and other supporters could join us, showing the growth and success the venture capital community has demonstrated in Michigan.”

ANN ARBOR, Mich.—The Michigan Venture Capital Association (MVCA) will recognize several Michigan venture firms, investment professionals, and two venture-backed entrepreneurs for their successes at its annual awards dinner November 7 in Plymouth.  The statewide membership organization will honor:

• MVCA “100 Award” winner Arboretum Ventures of Ann Arbor, for closing a venture fund over $100 million ($140 million Arboretum Ventures III, L.P., closed in August);
• Capital Event of the Year, the $250 million Venture Michigan Fund II, with MVCA members Tom Kinnear (U-M Ross School of Business); Kelly Williams (Credit Suisse CFIG); Charlie Rothstein (Beringea); and David Parsigian (Honigman Miller Schwartz and Cohn);
• Venture Exit of the Year Accuri Cytometers, for its 2011 sale to Becton Dickinson, with MVCA member venture investors  Arboretum Ventures, Credit Suisse CFIG, Baird Venture Partners, Flagship, and Plymouth Ventures Partners;  and,
• Jennifer Baird, initial CEO of Accuri Cytometers and current CEO of venture-backed Accio Energy, along with Accuri founder Colin Rich, will be named MVCA Entrepreneurs of the Year.

“The past year has brought some exciting activity to our state’s venture community, namely the launch of several new venture funds and one large venture-backed exit,” said Merrill Guerra, Executive Director of the MVCA.  “The successful exit of Accuri Cytometers is another example of our region’s ability to produce great returns, owing in part to Michigan entrepreneurs’ capital efficiency and prudent management style.  We encourage out-of-state investors to uncover what local venture investors already know—that there is a lot of potential in Michigan companies.”

About the MVCA

The MVCA is a trade organization designed to bring together venture capital industry participants in the state of Michigan.  The organization’s goal is to grow and sustain a vibrant venture capital community in Michigan.  Membership includes private venture capital funds, corporate venture capital funds, private equity firms, angel investors, and entrepreneurial infrastructure participants.  The MVCA is a vehicle to bring together industry participants and to provide a concerted voice for Michigan’s venture capital industry.  www.michiganvca.org

Mahendra Ramsinghani, managing director of MVCA member Invest Detroit’s First Step Fund, published his book The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies.

The Business of Venture Capital covers the various aspects of venture investment spectrum, from raising funds and structuring investments to assessing exit pathways.  It is the first book of its kind to focus on the four critical pillars of the venture capital business—raising the fund, sourcing and structuring investments, creating value as a board member and finally, leading investments to exits.

Written by a practitioner for practitioners, the book provides the necessary breadth and depth, simplifies the jargon and balances the analytical logic with experiential wisdom. Starting with a Foreword by Mark Heesen, President, National Venture Capital Association (NVCA), this guide includes insights and perspectives from leading experts.

• Part One covers the process of raising the venture fund including:

-   Identifying and assessing the Limited Partner universe

-   Fund due-diligence criteria

-   Fund investment terms

• Part Two covers the investment process including:

-   Sourcing investment opportunities

-   Conducting due diligence and negotiating investment terms

-   Adding value as a board member

-   Exploring exit pathways

With insights, anecdotes and wisdom from the experiences of best-in-class practitioners, this guide can help the reader to understand the dynamics of this business.

Leading Limited Partners / Fund-of-Funds interviewed include Credit Suisse, Top Tier Capital Partners, Grove Street Advisors, Rho Capital, Pension Fund Managers and Family Office Managers.

Insights of over twenty five leading venture capital practitioners, frequently featured on Forbes Midas list of top venture capitalists including Frank Caufield (Co-founder, Kleiner Perkins Caufield and Byers) David Cowan (Bessemer Venture Partners) Todd Dagres (Spark Capital) Promod Haque (Norwest Venture Partners) Tim Draper (Draper Fisher Jurvestson) Brad Feld (Foundry Group) Mitch Lasky (Benchmark Capital) John Jarve (Menlo Ventures) Terry McGuire (Polaris Capital and former NVCA Chair) Bryan Roberts (Venrock) and Bob Nelsen (ARCH Venture Partners).  MVCA member firms mentioned include Arboretum Ventures, TGap, Dow Ventures, RPM Ventures, Northcoast Ventures, Renaissance Venture Fund, Venture Investors, and Hopen Life Sciences Fund.

Ann Arbor, MI (September 8, 2011) – Arboretum Ventures, a leading venture capital firm specializing in early-stage healthcare investments, today announced the final closing of its third investment fund with capital commitments totaling $140 million, above the $125 million target for the fund. The firm now has $235 million in capital under management, and has invested in 25 different healthcare companies over the past nine years. Arboretum III will be invested in healthcare companies located across the U.S., with particular focus on the Midwest, where the combination of strong investment opportunities and a relative shortage of venture capital creates the potential for outstanding investment returns.

“We are pleased to have exceeded our fundraising target for Arboretum III in what remains a challenging venture capital fundraising environment. We are gratified by the support of our returning investors, and welcome several new investors to Arboretum III,” said Managing Director Jan Garfinkle.

“In the past three years, several companies in our previous two funds have been acquired by large healthcare companies in significant cash transactions,” said Managing Director Tim Petersen. “These exits certainly boosted our fundraising efforts, allowing us to attract new institutional capital from across the U.S.”

Arboretum will continue to focus on companies developing innovative healthcare products that not only improve patient care but also reduce the cost of healthcare delivery. “The opportunity for innovation to support a more efficient and cost-effective healthcare system has never been greater,” according to Arboretum Principal Paul McCreadie. For example, Mr. McCreadie recently led Arboretum’s investment in Wellfount Corp., an Indiana-based pharmacy services provider offering a technology-enabled solution to reduce cost and improve patient safety in long-term care facilities.

Xconomy: “Serial Entrepreneur Jeff Williams To Lead Life Magnetics”
Thomas Lee 4/25/11

If it ain’t broke, don’t fix it.

Arboretum Ventures in Ann Arbor, MI, is once again teaming up with serial CEO Jeff Williams to try to spin a University of Michigan-bred company into investor gold.

This time Williams will lead Life Magnetics, a startup developing a desktop diagnostic device that uses disposable cartridges to rapidly test bacterial infections. The device will determine how bacteria responds to antibiotics within eight hours of sample collection, the company says.

Life Magnetics was the first tenant to occupy the university’s new Venture Accelerator, a former Pfizer research and development center located at the school’s North Campus Research Complex.

The team of Arboretum Ventures and Williams has proven to be a winning combination twice before. Becton, Dickinson & Co. recently paid $480 million to acquire Accuri Cytometers and HandyLabs, two Arboretum-funded startups guided by Williams.

Rest of article here.

Xconomy presents “Michigan 2030″

What will the Michigan innovation, life sciences, clean energy, transportation, and information technology landscape look like 20 years from now? Will the area have emerged as an even bigger player in university and corporate research, or a major factor at all in areas like venture financing and entrepreneurial activity-and, if so, in what fields? We’re assembling a select group of innovators and visionaries for an intimate conversation about these and other key questions about the long-term future of Michigan’s innovation scene.

As an added bonus, we are planning an investor-entrepreneur lightning round discussion of the current climate for innovation and what is hot now-and how that might pave the way for Michigan’s sustained success in 2031.

Confirmed Participants:
Randal Charlton, Executive Director, TechTown
David Cole, Chairman Emeritus, Center for Automotive Research
Jan Garfinkle, Managing Director, Arboretum Ventures
Roger Newton, Founder, President, & CEO, Esperion Therapeutics
Chris Rizik, CEO, Renaissance Venture Capital Fund
Charles Rothstein, Senior Managing Director, Co-founder, Beringea
Don Runkle, CEO, EcoMotors
Ann Marie Sastry, Co-founder and CEO, Sakti3
Dug Song, Co-founder and CEO, DUO Security

Schedule: Registration & Networking: 4:45 – 5:30 pm Program: 5:30 – 7:00 pm Networking reception: 7:00 – 8:00 pm
Location: TechTwo 6160 Cass Avenue Detroit, MI 48202
Special MVCA Rate: $30 Register at http://xconomyforum35.eventbrite.com/?discount=MVCA
Tickets are transferable but not refundable.

Members of the MVCA Talent Committee are preparing for a busy 2011.  Among the group’s initiatives–sustaining the EIR/CEO Placement program, creating a new MVCA Fellowship program aimed at recent advanced degree graduates of in-state universities, and continuing the popular “Super HotShots” talent recruiting night.

MVCA Talent Committee Members Jim Adox, Amy Cell and Tim Petersen

The committee members include:  Jim Adox, Venture Investors; Amy Cell, Ann Arbor SPARK; Tim Petersen, Arboretum Ventures; and Jeff Barry, Plymouth Management Partners.

ANN ARBOR, Mich.—Celebrating “A Year of Exits”, the Michigan Venture Capital Association held its annual awards dinner for its members and guests November 15 in Ann Arbor.  The statewide membership organization honored several Michigan venture firms as well as venture capital recipient companies for their successes:

• MVCA “Michigan 100” Award winner Cerenis Therapeutics of Ann Arbor, for raising over $100 million in venture capital;
• Michigan’s new venture firms: Huron River Ventures, Michigan Accelerator Fund Management, and Resonant Ventures;
• Multiple venture capital investment exits, both non-Michigan companies with Michigan venture investors and Michigan-based companies:

o   LenSx Lasers (Venture Investors)

o   Greenplum (EDF Ventures)

o   ZyStor (Apjohn Ventures & Venture Investors)

o   CardioMEMS (Arboretum Ventures)

o   Ikano Therapeutics (Apjohn Ventures)

o   Arbor Networks (EDF Ventures)

o   HandyLab (EDF Ventures, Wolverine Venture Fund, Arboretum Ventures, Ardesta Capital, Dow Venture Capital)

Jeff Williams, former CEO of HandyLab and current CEO of venture-backed Accuri Cytometers, was named MVCA Entrepreneur of the Year.

“The wind is in our sails,” stated LeAnn Auer, Executive Director of the MVCA, in her remarks before the dinner.  “It’s been a year of exits, as many of our venture capital firms have successfully exited portfolio companies located both here in Michigan and elsewhere.  In addition, venture capital financings have already exceeded 2009 levels.  These successes bode well for future growth in our community.  I’m looking forward to this year’s celebration.”

The Michigan Venture Capital Association will also announce its 2011 Board of Directors:

• Ron Reed (Chairman), Managing Director, Seneca Partners
• Tom Kinnear (Vice-Chairman/Treasurer), Managing Director, Zell Lurie Institute at U-M Ross School of Business
• Tim Petersen (Vice Chairman/Chairman-Elect), Managing Director, Arboretum Ventures
• Uzma Ahmad (Board Secretary), Attorney, Dykema Gossett PLLC
• Jim Adox, Managing Director, Venture Investors
• Jeff Bocan, Managing Director, Beringea
• Hugo Braun, Co-Founder, North Coast Technology Investors
• Greg Main, President & CEO, Michigan Economic Development Corporation
• John McIlwraith, Managing Director, Allos Ventures
• Chris Rizik, CEO & Fund Manager, Renaissance Venture Capital Fund
• Skip Simms, Managing Director, Ann Arbor SPARK
• Mina Sooch Partner, Triathlon Medical Ventures; Managing Director, Apjohn Ventures
• Jody Vanderwel, President, Grand Angels
• Ken Van Heel, Director, Alternative Investments & Venture Capital, Dow Chemical Company
• Donald Walker, Managing Director, Arbor Partners

About the MVCA

The MVCA is a trade organization designed to bring together venture capital industry participants in the state of Michigan.  The organization’s goal is to grow and sustain a vibrant venture capital community in Michigan.  Membership includes private venture capital funds, corporate venture capital funds, private equity firms, angel investors, and entrepreneurial infrastructure participants.  The MVCA is a vehicle to bring together industry participants and to provide a concerted voice for Michigan’s venture capital industry.  www.michiganvca.org