FOR IMMEDIATE RELEASE – MAY 14, 2012 – ANN ARBOR, MICH. – The Michigan Venture Capital Association (MVCA) recently released its annual research report, which details investment activity across the state.  The report also highlights venture capital activity in Michigan compared to other regions and the U.S.

“The data collected in the MVCA research report show that Michigan’s venture community is growing, both in size and deals,” said Tim Petersen, MVCA board chair.  “It’s particularly exciting to see significant growth — 64 percent — in venture capital under management by Michigan firms as well as a trend towards larger fund sizes.  Michigan is making steady gains in its efforts to be a destination for entrepreneurial business.”

MVCA’s research report findings include:

o   Michigan start-up companies received $191 million in venture capital investment during 2011. There were 38 total investments, including 22 new companies that received a first round of venture capital funding.

o   In Michigan, the number of venture firms, investment professionals, and capital under management have all increased.  The 54 funds managed by venture capital firms in Michigan had 335 active portfolio companies.

o   Venture capital under management among firms headquartered in Michigan increased by 64 percent over the last 5 years. Of the $3 billion of venture capital under management, nearly $370 million is available for new investments within and outside Michigan.

o   In 2011, four Michigan venture capital firms successfully closed their funds, raising a total of $348 million. Arboretum Ventures and Plymouth Venture Partners are headquartered in Michigan while MK Capital and Arsenal Ventures have Michigan offices.

o   As venture firms raise their next funds, the trend for larger fund sizes continues. Michigan now has six funds that are greater than $100 million. There are eight funds between $50 million and $100 million and 13 funds less than $50 million.

The MVCA annual research report is available to its members, legislators, and Limited Partners.  It’s also available upon request.

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

Member Renaissance Venture Capital Fund recently announced its first close on its second fund.

“When we formed the first fund, we said, ‘Let’s make a model of a new kind of venture entity, and if it works we can broaden it out later to foundations and universities and to include the whole state,’ ” said (Chris) Rizik.

Read the article from Crain’s Detroit Business.

MGCS 2012 will feature presentations from more than 40 of the Midwest’s top high-growth companies. Applications will be accepted through Tuesday, March 6. A four page (maximum) executive summary is needed to apply along with a $20 application fee.

Who should apply?
High-growth innovative companies from market sectors including but not limited to internet, software, healthcare, medical device, pharma, mobile and energy. Companies encouraged to apply include seed, early-stage, late-stage, and pre-IPO. Presenting companies will be selected by a committee of qualified venture capitalists. Companies will be selected based on market opportunity, competitive advantages, intellectual property, partnerships, business/technology platform, financial projections, exit strategies and the quality and experience of the management team.

Companies considered for presenting should meet the following criteria:
- Project $20M in revenue within five years.
- Seek funding in the range of $500K to $20M.
- Preferably have a Midwest connection.

Presenting Company Benefits
*  A four-page company executive summary will be included in the conference binder.
*  Listing of company name and link on the MGCS web site.
*  Pitch and presentation coaching.
*  15 minute presentation slot to showcase your business opportunity.
*  Table-top exhibit space.
*  Extensive networking time in and near the exhibit area.

Registration
Selected companies receive a reduced registration rate of $295, which is a $200 discount off regular admission.

MGCS will also feature:

*         2 Keynote Luminaries

*         65+ Investment Firms Represented

*         42 Top Midwestern Companies Seeking Funding

*         30 Premier Panelists

*         5 World Class Panel Discussions

*         2 Days of High Level Networking

Questions? Please contact Mary Nickson, Symposium Manager, at 734-615-4424 or mnickson@umich.edu.

General Motors has named Jon Lauckner vice president and chief technology officer (CTO), effective April 1. In addition to his current position as president of GM Ventures, Lauckner will be responsible for GM’s Research and Development activity.

Lauckner succeeds current CTO, Tom Stephens, who retires April 1, and he also assumes R&D responsibilities from Vice President Alan Taub, who has elected to retire and pursue outside interests after 11 years with GM.

Lauckner will continue to report to GM Vice Chairman Stephen Girsky. He will also serve as a member of the Global Product Development staff headed by Mary Barra, senior vice president of GM Global Product Development.

“Jon’s vast knowledge and experience in product development and engineering, combined with his ability to identify new and innovative external technology partners, make him a perfect fit for this critically important role,” said Girsky.  “With both GM Ventures and Research and Development aligned under him, we will be more nimble and can move faster to integrate the latest and most-advanced technologies into our vehicles for the benefit of customers.”

Lauckner has been president of General Motors Ventures, LLC since July 1, 2010.  In this role, he leads a team that makes equity investments in innovative startup companies developing next-generation automotive technology. Lauckner previously held the positions of vice president, Global Product Planning and vice president, Global Program Management.

Lauckner, 54, joined GM in 1979 as a test engineer and held a number of positions in product engineering, powertrain engineering and product development, including international assignments in South America and Europe. He received a Bachelor of Science degree in mechanical engineering from the University of Michigan in 1979. He earned a Master of Science degree in management from Stanford Business School in 1990 through the Sloan Fellowship program and attended the GM-Harvard Senior Executive Program in 2001.

Regarding the retirement of Alan Taub, Girsky said, “Our company and the industry have benefitted greatly from Alan’s experience and leadership. His talent and contributions are appreciated by all those who worked with him.”

Taub joined GM R&D as executive director in 2001. In July 2009, he was named vice president of Global R&D, where he led GM’s advanced technical work, seven science laboratories and seven global science offices.

Read about it on GM’s site.

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.—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

ANN ARBOR, Mich. (September 30, 2010)—The Michigan Venture Capital Association (MVCA) will award up to $50,000 in grants and loans to both Huron River Ventures and Michigan Accelerator Fund I, winners of the Michigan Economic Development Corporation’s Accelerator Fund program.  The MVCA award provides support for the funds’ organizational costs excluding salaries.  In addition, the two funds will be granted membership to the MVCA for three years and in-kind professional service support as permitted.

Each awardee fund is in process of raising more than $7 million.  Mina Sooch, MVCA chairman of the board and managing partner at Apjohn Ventures, welcomes the funds to Michigan’s thriving venture community:  “The MVCA Board has been an enthusiastic supporter of the creation of two new venture funds that can provide early stage funding to the growing entrepreneurial community across Michigan.  Given our organization’s growth and success over the last decade, the MVCA is pleased to be in a position to provide both financial and professional support to the launch of two new VC firms.”

MVCA Executive Director LeAnn Auer says the MVCA’s participation complements the MEDC’s fund development program.  “This award gives two new ventures firms even more tools to grow and succeed, which is good for our entrepreneurial ecosystem and the state’s economy as a whole.”

Greg Main, CEO of the Michigan Economic Development Corp., said:  “We are stepping up our efforts to help support companies at various phases of development and this program will help increase the availability of early-stage venture capital in Michigan.”

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

ANN ARBOR, Mich.—The Michigan Venture Capital Association (MVCA) has released its 2010 year-to-date report on venture capital activity in Michigan.  As of August 2010, more than $123 million in venture capital has been invested in Michigan‐based start‐ups, a 35% increase compared to 2009 year‐to‐date financings. Also notable:

• This year-to-date, there were 10 venture capital investments made in Michigan companies totaling $123 million. As of this time last year, a total of $91 million had been invested into 12 companies; and,
• Six of the 10 deals were made in Series B rounds or later, explaining the larger amount of venture funding across fewer companies this year versus last year.

To read the entire report, click here.

MVCA Executive Director LeAnn Auer says “This report conveys the progress the venture and entrepreneurial community has made in Michigan.  Our year-to-date numbers are substantially higher than last year, proving there are both exceptional companies to fund in our state as well as a growing VC community here to support them.”

More than 70 MVCA and MHIN members convened at Vinology of Ann Arbor to enjoy excellent food, wine and conversation prior to the Michigan Growth Capital Symposium Monday, May 10.  Thanks to everyone who was able to attend and make this event a huge success!