Arboretum Ventures is pleased to announce that Kristin Myers has joined the firm as a Principal. Kristin is a former Partner at Skyline Ventures (Palo Alto, CA), where she led numerous due diligence efforts for medical device opportunities. Kristin Myers Press Release final from Arboretum
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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.
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More than 145 members of Michigan’s venture capital community gathered to celebrate a year of individual, company, and statewide industry achievement at the MVCA Annual Dinner November 7 at the Inn at St. John’s in Plymouth. Outgoing MVCA Chairman Ron Reed welcomed the group and praised the venture community for meeting each of the MVCA’s strategic goals set in 2006. Incoming MVCA Chairman Tim Petersen introduced the 2012 Board of Directors, thanking longtime board member John McIlwraith (Blue Chip Ventures) for six years of service and welcoming Jon Lauckner (GM Ventures), Pete Farner (TGap Ventures), and Mark Horne (Plymouth Management Co.) to the board for three-year terms. Managing director of event sponsor Credit Suisse Customized Fund Investment Group Kelly Williams shared her insights on the national venture landscape, offering her perspective on how many other states hope to emulate Michigan’s robust venture activity and programming.
After dinner, awards were presented to several Michigan venture firms, investment professionals, and two venture-backed entrepreneurs for their successes:
• 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 investors Arboretum Ventures, Baird Venture Partners, Flagship Ventures, Credit Suisse CFIG, and Plymouth Ventures Partners; and,
• Jennifer Baird, initial CEO of Accuri Cytometers and current CEO of venture-backed Accio Energy, and Accuri founder Collin Rich, named MVCA Entrepreneurs of the Year.
A special highlight was the recognition of former MVCA Executive Director LeAnn Auer, who received the MVCA Above and Beyond award for her dedication to the organization’s goals and her five years of service in the leadership role. The evening ended with comments from MVCA Executive Director Merrill Guerra, pledging to continue the growth of the 70-plus member organization and keep Michigan’s entrepreneurial ecosystem strong.
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The team at Arboretum Ventures has done the improbable: raised an oversubscribed fund during one of the worst venture capital fundraising periods ever. Their firm’s new $140 million fund, Arboretum III, will continue to focus on companies developing innovative healthcare products that not only improve patient care but also reduce the cost of healthcare delivery. We asked Jan Garfinkle and Tim Petersen, Arboretum’s managing directors, about their firm’s fundraising success, what’s behind the investor appetite, and why they’re “100% certain” Arboretum Ventures will still be in Michigan in 2021.
MVCA: You found success on the fundraising trail when so many other firms have struggled. What qualities in your offering do you think investors found most attractive?
Arboretum Ventures: The main driver for investor interest was our returns, frankly. We’ve sold five companies, three of which were major exits (HealthMedia, HandyLab, and Accuri Cytometers). We’ve already returned all of our first fund and a good portion of our second fund, with returns in the top decile of performance for our vintage year, so we think that made a huge impression.
MVCA: Did you have strong support from your existing investor base?
Arboretum: We’re so fortunate to have a very strong high-level group of existing investors that are Midwest- based. All of the investors in Arboretum II committed to the first close of our third fund, which was great. Then we were able to bring in new investors from not just the Midwest but nationally because of our track record.
MVCA: You invest in mainly Midwest companies. Does being located in Michigan give you a competitive advantage or disadvantage when competing for deals in the healthcare space?
Arboretum: We really believe being in Michigan is a competitive advantage. The major exits we’ve had have all been Michigan companies, so we know we can find great companies locally that funds on the coasts might miss. And a big part of the reason our exits were so successful is because our CEOs did a great job of being capital efficient. This is part of the “secret sauce” for Midwest companies—low costs of living and doing business means that invested capital goes further. It’s up to 30% cheaper to run a business here than in San Jose, for example, so that makes a huge difference because companies in our sector are usually acquired for a price in the range of $100mm to $300 mm. It’s a real advantage for us investing here in the Midwest.
MVCA: What is your vision for where your firm and our industry as a whole in Michigan will be in five or 10 years?
Arboretum: For us, we are always striving to be one of the top healthcare venture funds not just in Midwest but in the U.S. But we’re 100% certain we’ll still be located in Michigan in ten years, it’s one of our core competitive advantages.
Our hope for venture capital in Michigan is that we have multiple funds north of $100 million that are able to provide investment and support to companies that are in the Midwest in all of the various industries. The venture funds on the coasts are all fighting for the same deals in their area, but there’s not as many of us so we have a great opportunity to get good prices and efficient use of capital. In healthcare at least, and specifically in diagnostics, we’re reaching critical mass here in Michigan. Management teams from successful companies like HandyLab, Accuri and HealthMedia can now stay in our area and find another company to grow and lead. Fifty to 100 healthcare companies headquartered in Michigan in 2021 would be a wonderful thing.
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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 21st 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
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The MVCA reported total venture financings in Michigan topped $72.5 million thus far in 2011, a decrease over 2010 and 2009. However, 2009 and 2010 financings were unusually high given sizable venture capital raises in several Michigan life science companies. Despite the decrease in total year-to-date financings, the number of investments made are on par with the prior two years, indicating lower amounts of venture capital contributed per deal.
Click here to review the entire 2011 YTD MVCA Venture Financings report.
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Josh Linkner, CEO & Managing Partner of Detroit Venture Partners (part of the Quicken Loans family of companies) and Founder & Chairman of ePrize, was recognized as a “Champion of Change.”
The Champions of Change program is a weekly series that is part of President Obama’s “Winning the Future” initiative, which honors entrepreneurs that have started creative companies, hail from every corner of the country and work in diverse fields that are bringing services and products to the market. They’re winning the future by starting businesses, and creating jobs, wealth and opportunities for their communities.
Josh was chosen because he is an “outstanding example” of President Obama’s vision to out-innovate, out-educate and out-build the rest of the world, and is one of just 11 entrepreneurs being honored at the White House today!
Read more: http://www.quickenloans.com/blog/josh-linkner-named-champion-change-white-house#ixzz1VmzwZjUJ
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Fund II is second life science fund managed by West Michigan-based Hopen Life Science Ventures
Grand Rapids, Mich.– Hopen Life Science Ventures, a Grand Rapids-based life science venture capital fund, announced an initial close of $25 million for its second fund, Hopen Life Science Fund II. The fund will remain open to new limited partners with a target fund size of $50 million expected by January 2012. Hopen Life Science Ventures Managing Director Mark Olesnavage anticipates making 8-12 investments over the course of the fund in drug, medical device, diagnostic, or related technology opportunities. The new fund is the second life science fund managed by Hopen Life Science Ventures; Fund I, launched in 2006, is a closely held life science fund with seven companies in its portfolio.
“Similar in focus to our first fund, Fund II will target early-stage life science companies with remarkable innovations that lead to improved healthcare outcomes and/or reduced healthcare system costs. We primarily focus on companies in the Midwest, pragmatically leveraging the firm’s existing local, regional, national and global life science resource network to support our portfolio companies,” commented Olesnavage.
The Fund II team has already completed four new investments, which Olesnavage calls “the type of market-leading innovators we expect to fill our Fund II portfolio.” They are:
About Hopen Life Science Ventures
Located in Grand Rapids, MI, Hopen Life Science Ventures invests in early- to mid-stage companies that are based on remarkable life science or related healthcare innovation. Hopen Life Science Fund II has been formed to meet the continuing demand for underserved opportunities in the life sciences and healthcare sector with a concentration in the Midwest region. Fund II achieved its first close in January 2011 and has made four investments to date. The Fund will remain open to new Limited Partners until January 2012. www.hopenls.com
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The U.S. Small Business Administration (“SBA”), State of Michigan Retirement Systems (“SMRS”), The Dow Chemical Company and InvestAmerica have partnered to provide Michigan businesses with debt and equity funding through the InvestMichigan! Mezzanine Fund.
The fund will invest up to $130 million into lower-middle-market Michigan companies over the next five years and was formed in partnership with the SBA through its new Start-Up America Impact Investment SBIC Initiative. Michigan is the first state to benefit from the initiative, which aims to commit $1 billion nationwide.
“Programs like this will help lay the groundwork for Michigan’s economic recovery,” said Governor Rick Snyder. “My administration has focused on economic gardening, helping Michigan businesses grow. This innovative program is a fine example of how public and private sector resources can cultivate growth in the business community while generating competitive market rates of return for the State’s pension funds.”
The fund, announced by Snyder, SBA Administrator Karen Mills and Dow Chairman and CEO Andrew Liveris, will provide much-needed capital for Michigan companies seeking to gain access to credit and capital.
“At Dow, we believe in the power of public-private partnerships to create value, grow our economy, and secure our nation’s future. That is why we are proud to invest in America and in this new initiative with the federal government and the state of Michigan to provide capital to small and medium-sized companies. Large corporations need to make sure the smaller enterprises in the supply chains have access to liquidity and credit so that they succeed as they are our customers and suppliers,” said Dow Chairman and CEO Andrew N. Liveris. “As a national program, we look forward to other states and companies joining us as we expand this critical initiative across the Country.”
The fund will be a licensed Small Business Investment Company (“SBIC”) formed by Credit Suisse’s Customized Fund Investment Group (“CFIG”) and Beringea LLC. The InvestMichigan! Mezzanine Fund is the newest fund in the InvestMichigan! Program, which was initiated in 2008 with capital commitments from the SMRS.
The InvestMichigan! Program funds focus exclusively on providing capital to businesses that are headquartered, have a significant presence, and/or plan to expand or relocate in Michigan. The new $130 million InvestMichigan! Mezzanine Fund and the existing $185 million InvestMichigan! Growth Capital Fund are co-managed by CFIG and Beringea.
“The SBA, the State of Michigan Retirement Systems, Dow and InvestAmerica have demonstrated a strong commitment to growing Michigan-based businesses and we are honored to be able to work with them to play a crucial role in building Michigan’s new economy,” said Kelly Williams, Managing Director and Head of CFIG.
Goals of the new InvestMichigan! Mezzanine Fund include:
The fund provides mezzanine debt or equity to companies seeking capital for ownership transitions, business expansions, buyouts, recapitalizations and/or refinancings. It will invest $5 million to $15 million in cash flow-positive companies, with revenues in excess of $20 million and EBITDA in the range of $3 million to $15 million. Companies must also fulfill the following criteria:
Michigan Criteria:
Operational Criteria:
Joining Snyder, Mills and Liveris for the announcement were Michigan Treasurer Andy Dillon and Managing Director and Head of CFIG Kelly Williams, who is a managing partner of the fund.
“Michigan provides an extraordinary environment for investment, given its centers of excellence in technology and innovation and highly skilled work force,” said Treasurer Dillon. “We look forward to the positive returns this will generate for the State of Michigan Retirement System and the impact this program will have on Michigan’s economy.”
The InvestMichigan! Mezzanine Fund was formed in partnership with the U.S. Small Business Administration and targets investment opportunities in lower middle market Michigan companies. The Fund provides flexible funding options and value-added assistance to help companies reach their corporate goals. It is managed by Credit Suisse’s Customized Fund Investment Group (CFIG) and Beringea. For more information, visit www.investmichiganfund.com.
Credit Suisse’s Customized Fund Investment Group (CFIG) is one of the largest and deepest investment teams dedicated to private equity investing. The group is headed by Managing Director and Global Head Kelly Williams, who founded CFIG in 1999. As of Dec. 31, 2010, CFIG managed over $27 billion in commitments to private equity funds of funds and co-investments, both in the United States and internationally. CFIG’s more than 125 professionals are based at the group’s offices in New York, London, Hong Kong, Austin, Columbus, Detroit, Indianapolis, Los Angeles, Portland and Raleigh. In addition to the Invest Michigan Mezzanine Fund, CFIG manages the $95 million Venture Michigan Fund I, the $120 million Venture Michigan Fund II and the $109 million Michigan 21st Century Investment Fund programs and co-manages with Beringea the $185 million Invest Michigan Growth Capital Partners Fund program. For more information, visit www.credit-suisse.com.
Beringea offers advice, guidance and capital to support growing businesses. The firm is headed by Senior Managing Director Charles Rothstein, who founded Beringea in 1988. Headquartered in Farmington Hills, the firm is Michigan’s largest and most active venture and expansion-stage capital investor and has more than 70 portfolio companies in the U.S. and UK. The professionals at Beringea have extensive experience investing in a range of sectors, including health care and life sciences, clean technology, advanced manufacturing, media, Internet technologies and specialized consumer products. With capital, experience and offices in the U.S. and UK, Beringea’s award-winning team offers its portfolio companies the resources to develop strategy, evaluate growth opportunities, solve problems and build value. For more information, visit www.beringea.com.
Dow Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Company’s more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
InvestAmerica is a not for profit organization formed to develop job creating investment vehicles in the United States utilizing public private partnerships structures that join leading corporations with government programs.
Phil Lewis
Truscott Rossman
517-927-9310
plewis@truscottrossman.com
or
Terry Stanton
Michigan Department of Treasury
517-335-2167
stantont@michigan.gov
or
Louis A. Vega
The Dow Chemical Company
202-997-3992
LAVega@dow.com
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FOR IMMEDIATE RELEASE – July 25, 2011 – ANN ARBOR, MICH. – Augment Ventures, a new early-stage venture capital fund in Ann Arbor, Michigan recently closed its first round of funding and made its first investment in Aperia Technologies, a cleantech company.
Augment, which has an overall fund goal of $20 million, will invest in transformational cleantech and IT companies with high caliber and passionate teams,” said Sonali Vijayavargiya, Augment Ventures’ founder and managing director. “We invest in companies with breakthrough products that can leverage Midwest Might – the talent and assets unique to our region – to take advantage of global market opportunities. ”
Aperia Technologies, based in San Francisco, California, is developing an automatic tire inflation device for trucks. “In addition to enabling higher efficiency by increasing miles per gallon, Aperia’s technology will extend tire life and increase safety, enabling up to a 30 percent improvement in profit margins for fleet operators,” said Vijayavargiya. “They have a great team, scalable technology and over a $40 billion global market opportunity – all elements that Augment looks for in investment opportunities.”
Augment will be working closely with Aperia Technologies to recruit local fleet operators in Michigan to participate in their nationwide on-road testing program. Aperia is also exploring manufacturing options in Michigan. Sierra Angels, Band of Angels and other individual angels are investors in the current round of funding in Aperia. ABOUT AUGMENT VENTURES
Augment Ventures is an early-stage venture capital fund that invests in high caliber and passionate entrepreneurial teams with breakthrough products in CleanTech and IT for global markets. Investment criteria include – defensible intellectual property, capital efficient business models and global market opportunities. For more information please visit www.augmentventures.com.
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Sonali Vijayavargiya has more than 15 years of experience working with early-stage companies across various industries in different parts of the world. She has been a strategic advisor to companies such as Accio Energy, Accuri Cytometers, Adaptive Materials, Danotek Motion Technology and NRG Dynamics. Augment has seasoned successful entrepreneurs on its Advisory Board – Michelle Crumm, Kalyan Handique, Tom Kinnear, Maria Thompson, Dawn White and William Wood.
Contact: Jenn Cornell
734-765-0174
jenn@jenncornell.com
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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.
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