FOR IMMEDIATE RELEASE — MAY 20, 2013 – ANN ARBOR, MICH. — The Michigan Venture Capital Association’s annual research report, a compilation and analysis of investment activity, shows that 2012 was a banner year for venture capital (VC) in the state.  Compared to the national trend of declining VC funds and activity, funding activity and fund sizes in Michigan continued strong and steady growth last year.  In 2012, Michigan jumped from 25^th to 15^th in the national VC ranking — one of the largest increases in venture funding last year.

“The data reported in MVCA’s research report tell a compelling story about Michigan’s success in growing and nurturing an innovation-based economy,” said Carrie Jones, MVCA executive director.  “The venture capital community in Michigan continues to mature, with more VC under management among firms here than ever before as well as a steady increase in out-of-state funds establishing a presence in the state.  In tandem, Michigan’s entrepreneurial ecosystem continues to mature and strengthen, and more companies than ever before are attracting VC funding.”

The MVCA data shows that there are 29 venture capital firms doing business in Michigan. In 2012, venture capital firms invested $242 million in 33 deals in Michigan.  An additional $12.5 million in a combination of angel and pre-seed funding was invested into these same deals.

The state has 106 active companies that have received venture capital or angel investment. While the majority of these companies are in the life sciences, the number of companies in other sectors are growing, most notably those focused on information technology.

Growth in Michigan venture funds has been steadily trending upward.  In 2012, the amount invested by VCs, average fund size, capital under management all increased, as did available capital for new investments and the number of investment professionals. This growth has, in part, come from out-of-state funds opening offices in Michigan to tap into Michigan’s growing deal flow.

“Attracting outside investment to Michigan infuses the economy with new money that can help a company grow here,” Jones added.  “Entrepreneurs are taking notice of this trend; thanks to the successful venture community in Michigan, more entrepreneurs are considering the state as a destination to locate and grow their business.”

About the Michigan Venture Capital Association

The MVCA is a non-profit 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. For more information, visit www.michiganvca.org.

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Michigan Economic Development Corporation (MEDC) is preparing to release a Request for Proposals (RFP) for a study covering the entire capital continuum in Michigan. The study will be designed to assess the strengths, weaknesses, opportunities and threats in the capital markets in Michigan.

Within the MEDC, the Capital Markets group is responsible for increasing the availability of capital for Michigan companies, primarily through market-driven strategies that work directly with private sources of capital. When state intervention is appropriate the MEDC works directly with private capital sources in the target area(s) to craft and execute viable solutions.

Generally, the RFP will seek proposals for a study focusing on the following areas:

• Capital available for operating companies at all stages of the Capital Life Cycle
  o Including pre-seed, seed, angel, venture, and private equity, mezzanine and bank/bond capital
• Capital available for investment real estate including pre-development, project equity, mezzanine, construction, and permanent debt

Click here for more information and guidelines.

We are pleased to announce that Kevin Terrasi has joined Plymouth Management Company (PMC) as
Partner effective March 1, 2013. Kevin has worked closely with PMC since our investment in Pump
Engineering Inc. (PEI) in 2008. In 2011 Kevin joined the firm as an Executive in Residence and he has
worked closely with several of the portfolio companies backed by Plymouth Venture Partners Fund II.

Kevin began his career at PEI in 1996 as a Michigan State University engineering co-op student. During
his tenure at the Monroe Michigan firm, Kevin was instrumental in developing a unique custom design
and manufacturing process utilizing state of the art computer aided software. By doing so he and the
firm’s founder, Robert Oklejas, were able to establish PEI as an industry leader in high efficiency pumps
and energy recovery equipment.

Kevin was promoted to Vice President of Engineering and a member of the Board of Directors at PEI,
where he successfully developed and executed plans that resulted in rapid growth. He was an active
member of the divestiture team that sold PEI to Energy Recovery Incorporated (Nasdaq: ERII) in 2009.
For 2 years following the sale, Kevin served as Vice President of the Turbo Machine Division at ERII.

Plymouth’s Managing Partner, Mark Horne, commented, “I’m delighted to welcome Kevin to the firm as
our newest Partner. His great instincts, experience and skills are well suited for our regional growth
stage investment strategy. As we look ahead to our own future growth plans, Kevin adds greatly to our
operational depth.” Horne added, “We’re also grateful to the Michigan Venture Capital Association and
the MEDC who jointly sponsored Kevin’s role as Executive in Residence. The EIR Program allows venture
firms like ours to retain talented executives like Kevin in the state of Michigan.”

About Plymouth Venture Partners II, L.P.
Fund II is a follow-on fund to Plymouth Venture Partners Fund I. PVP I became fully invested in 2009
after completing investments in 29 companies. Plymouth Venture Partners II invests in growth stage
companies in the Great Lakes region. For more information, please visit www.plymouthvc.com.

About Plymouth Management Company
Plymouth Management Company is the manager for Plymouth Venture Partners I and Plymouth
Venture Partners II. The company has four partners, Mark Horne, Ian Bund, Jeff Barry, and Kevin
Terrasi. It is headquartered in Ann Arbor, Michigan. For more information, please visit
www.plymouthvc.com.

This December I had the privilege of attending the 38^th annual Venture Capital Institute in Atlanta.  VCI has served over the years as the de facto starting point for VC’s young and old who want to very quickly broaden their network and hone their skills in our trade.  Thanks to the generous support of the MVCA and MEDC, Michigan was extremely well represented with eight attendees – more than any other state.

Upon arriving we were immediately thrown into a speed networking event with folks from a variety of backgrounds – venture capital, economic development, banking, and corporate.  It was a great mesh, really, considering our industry is touched by most all of those fields.  The coursework consisted of case studies, ethics discussions, deal-making strategies, legal, and more.  Guest speakers from around the country participated, including legendary billionaire VC Pitch Johnson (yes, his name is Pitch) who at age 80+ still pilots his own private jet from Palo Alto every year to contribute to the next generation of  VC’s.

It became very apparent during day one that the aggressive schedule would not permit much free time to explore Atlanta and socialize.  Against all odds, however, the Michigan crew led the charge one evening and dragged our classmates and now friends out to check on a local barbecue pit and try some true southern cocktails.  It was great to get to know these attendees beyond a typical case study role.

On the flight home it reminded me a lot of my regular visits out to the Bay Area over the last four years.  While always exhausted (maybe the red-eye flights contributed), I often thought how beneficial it was to be building these networks outside of the state.  All eight of us came back armed with new ideas and connections that will benefit not only our careers but the strength of the overall innovation network in Michigan.  It is truly amazing that we have such forward-thinking programs like the Venture Fellows and my experience at VCI reinforced my decision to participate.  Thanks much for the great opportunity.

“The purpose of this Request for Information (“RFI”) is to request information from interested parties regarding services to conduct business valuations on early stage technology companies. The MEDC is looking to receive information from companies that have expertise in early stage technology company valuation practices, along with valuation methods utilized, and pricing models for providing those services.”

Read more about the RFI.

FOR IMMEDIATE RELEASE – JULY 11, 2012 — ANN ARBOR, MICH. — The Michigan Venture Capital Association’s (MVCA) programs to develop the state’s investment community are helping venture capitalists and their portfolio companies attract and retain top talent.

As part of its Michigan Venture Fellows Program, MVCA recently placed fellows at member firms Detroit Venture Partners and Open Prairie Ventures.  The organization also awarded funding for CEO Placements to ArborMetrix, a firm backed by MVCA member Arboretum Ventures, and ProNai Therapeutics, backed by MVCA member Apjohn Ventures. MVCA member firms Plymouth Ventures and RPM Ventures received funding through the Executives in Residence program.

“Finding, recruiting and developing top talent is a critical need for both investment firms and their portfolio companies,” said MVCA board chair and Arboretum Ventures managing director Tim Petersen.  “MVCA’s programs to help VCs and venture-backed companies fill a void while shining a light on the opportunities that exist in our state for both investment professionals and C-level talent that want to work for entrepreneurial ventures.”

The MVCA’s Michigan Venture Fellows, CEO Placement and Executives in Residence programs are funded by the Venture Upstart II allocation from the Michigan Economic Development Corporation (MEDC). The Michigan Venture Fellows Program is intended to create the next generation of venture capitalists and investment professionals in Michigan.  The Executives in Residence and CEO Placement programs are designed to support the eventual placement of an executive into a portfolio company’s operations post-investment or find and hire a qualified CEO candidate for a portfolio company.

Jared Stasik, a recent graduate of UC-Berkeley, and Sam Hogg, former director of venture development at NextEnergy, are participating in the MVCA Fellows program.  Stasik is joining Detroit Venture Partners and Hogg is joining Open Prairie Ventures.

ArborMetrix and ProNai Therapeutics received funding CEO Placements awards from MVCA.  The funding will be used to execute CEO searches, which both firms are currently conducting.

Plymouth Ventures welcomed Kevin Terrasi and RPM Ventures welcomed Kurt Skifstad into their firms for a period of deal sourcing and advisement, with an ultimate goal of placing these executives in a leadership role at a portfolio company.  Terrasi and Skifstad both bring operational experience to their venture firm sponsors.

Michigan venture capital firms participating in the Michigan Venture Fellows program receive assistance in hiring an associate.  Michigan venture capital firms may apply for a loan award to assist with the first year salary of an Executive in Residence or a CEO for a Michigan-based portfolio company.  The CEO Placement loan award may also be applied toward the recruiting fees incurred in finding an entrepreneurial CEO.

About the MVCA
The MVCA is a non-profit 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

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The Michigan Strategic Fund (MSF), through the Pure Michigan Venture Development Fund (PMVDF), will assist in the growth of the venture industry in Michigan by increasing the number of viable venture funds in the state.

To qualify, applicant venture funds are required to have raised $1 million in private capital from at least three unrelated investors at the time of application, which must be evidenced by signed investor commitments. Funds that have raised more than $25 million are not eligible to apply. Funds with target sizes greater than $50 million will not qualify for this Program.

“The Pure Michigan Venture Development Fund will be a valuable tool in helping to grow the venture industry in Michigan,” said MEDC President and CEO Michael A. Finney. “Increasing the number of venture funds here will lead to the development of new innovation companies, greater economic growth and ultimately, more and better jobs.”

Applications will be accepted from June 28- July 31.

Read the story on GLITR.

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.—Two MVCA member firms were recently awarded a loan from the organization’s Executive in Residence (EIR)/CEO Placement Program, marking the first distributions from the program’s new Venture Upstart II allocation from the MEDC.  Plymouth Ventures and RPM Ventures will welcome executives Kevin Terrasi and Kurt Skifstad respectively into their firms for a period of deal sourcing and advisement, with an ultimate goal of placing that executive in a leadership role at a portfolio company.

“We’re excited to relaunch the EIR/CEO Placement Program, which has been one of our most popular programs for members,” said Merrill Guerra, Executive Director of the MVCA.  “We’ve chosen two firms who are committed to keeping our entrepreneurial talent in the state.  This program continues to make a difference to the many executives in our market who might otherwise have had to leave the state to find compelling leadership opportunities in their entrepreneurial niches.”

Terrasi and Skifstad both bring operational experience to their venture firm sponsors. Terrasi joins Plymouth following his tenure as Vice President of Engineering and a Director of Pump Engineering, Inc./LLC (PEI), a Plymouth Ventures Fund I portfolio company which was sold in 2009 to Energy Recovery, Inc. (NASDAQ: ERII).  Skifstad, Executive-In-Residence at RPM Ventures, has founded, co-founded, or been part of the senior management team of multiple ventures, including three firms that were acquired, one that went public, and two companies that are still operating.  In addition to his operating experience, Skifstad mentored entrepreneurs in his position at University of Michigan’s Office of Technology Transfer and teaches a senior‐level class on entrepreneurship in the College of Engineering at the University of Michigan. He holds a Ph.D. in Computer Science and Engineering from the University of Michigan and attended the Executive Education Program at U-M’s Ross School of Business.

About the MVCA EIR/CEO Placement Program
Billed as a talent attraction and retention program, the EIR/CEO Placement program was developed in 2007 to help Michigan venture firms support the eventual placement of an EIR into a portfolio company’s operations post-investment or find and hire a qualified CEO candidate for a portfolio company.  In 2011, the MVCA received a second 21st Century Jobs Fund award from the Michigan Economic Development Corporation (MEDC) to renew its EIR and CEO Placement programs.  This grant award allows the MVCA and the MEDC to work together to foster an environment to help entrepreneurs and Michigan-based venture-backed companies succeed.  Under the EIR program, Michigan venture capital firms may apply for a loan award to assist with the first year salary of an EIR.  Under the CEO Placement program, the loan award may be used to pay the one year salary of a newly recruited CEO in one of their Michigan-based portfolio companies.  The CEO Placement loan award may also be applied toward the recruiting fees incurred in finding an entrepreneurial CEO.

For information about the MVCA EIR or CEO Placement programs, visit www.michiganvca.org or contact Merrill Guerra at 734.929.9970.

About the MVCA
The MVCA is a non-profit 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

About Plymouth Ventures Fund II
Plymouth Ventures Fund I became fully invested in 2009 after completing investments in 29 companies. Plymouth Ventures II is actively looking to invest in strong early expansion-stage companies in the Great Lakes region. Plymouth has four partners: Mark Horne, Ian Bund, Bob Savage, and Jeff Barry, with offices in Ann Arbor, Michigan and Toledo, Ohio. Visit www.plymouthvc.com for more information.

About RPM Ventures
RPM Ventures, founded in 2000, is a seed and early stage venture firm with $75 million under management. RPM concentrates its investing in Information Technology, taking advantage of the firm’s West Coast experience and Midwest roots.  The combination of these positions RPM to bring a grounded perspective to its investing that reflects an integration of Silicon Valley culture and relationships with Midwest values and network. RPM is a founding investor in numerous deals, often investing before there is a product or management team in place. Additionally, RPM is a valuable investing partner for companies within sectors in which the firm has specific expertise, including: Retail Automotive Software, Solutions for Industrial and Retail enterprises, E-commerce, Online Marketplaces, Cloud and Social Media Infrastructure, and spinouts from leading research universities. For more information, visit www.rpmvc.com.

The Michigan Venture Capital Association (MVCA) is accepting applications for two new venture programs, the Michigan Venture Fellows Program and the Angel Network Growth Program, as well as for its popular CEO/Executive In Residence Program.  All three programs were funded by a recent $3.1 million grant from the Michigan Economic Development Corporation’s 21^st Century Jobs Fund, a program of the Michigan Strategic Fund.  Complete details of each program are available at www.michiganvca.org.

The Michigan Venture Fellows Program will create the next generation of Michigan venture capitalists by expanding job opportunities at Michigan venture capital firms.  Fellows will spend 18-24 months in a Michigan-based venture firm, earn a salary and receive training at the Venture Capital Institute.  Fellow candidates should have strong Michigan ties, preferably as graduate students at Michigan universities whose professional goals include venture capital.  Interested candidates must apply to the MVCA by November 30.

The Angel Network Growth Program awards a maximum of $18,000 per year to the six Michigan-based angel groups (Ann Arbor Angels, Blue Water Angels, Capital Angels, First Angels, Grand Angels, and Great Lakes Angels) or others to be determined by the MVCA Board of Directors.  The angel group must have made at least one initial investment of at least $125K in the prior six month period to qualify for the award.  The group can then use the money to hire a new staff person/intern, organize an angel education event for members and potential members,  organize a network-to-network deal-sharing event, or invest in typical angel investment activity infrastructure (due diligence, back office, legal, and accounting).

The EIR/CEO Placement Program pairs the state’s venture firms with executive talent.  The EIR program is designed to attract and retain executive-level talent, broaden the reach of venture capital firms, and lead to new-company formation and growth in Michigan.  The CEO program is designed to increase the number of venture-backed executives and the number of successful venture-backed companies in Michigan.  This program results in the placement of successful, venture-backed CEOs into Michigan-based portfolio companies.  The MVCA aims to select three to four EIR/CEO candidates in each year of the three year program.

Ron Reed, general partner and founder of Seneca Partners and president of the MVCA, says, “We’re excited to offer these three outstanding programs to the Michigan venture community.  They each address important pieces in cultivating a robust venture capital industry in our state—talent, leadership, and capital.”

MVCA Executive Director Merrill Guerra adds:  “We look forward to an expanding angel network here in the state as well as to attracting and retaining more young and executive talent.  These programs will serve a vital role in executing our mission to support Michigan’s venture capital and entrepreneurial communities.”

About the MVCA

The MVCA is a non-profit 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