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.

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, 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.

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