GRAND RAPIDS — Strong investor interest led Michigan Capital Network to expand the size of its new venture capital fund, the organization’s fourth since its inception.
The Grand Rapids-based Michigan Capital Network today filed documents notifying federal securities regulators that it has raised the fundraising target for Michigan Capital Network Venture Fund IV LP down to $35 million from the original $25 million.
Paul D’Amato, CEO and Managing Partner of Michigan Capital Network. (COURTESY PHOTO)
The investment group has set the highest amount for the fourth fund after raising $23.7 million so far over 14 months, according to a filing with the U.S. Securities and Exchange Commission. The federal regulatory filing said the amount came from 81 investors.
Michigan Capital Network raised the funds as venture capital investment continues to grow both in Michigan and nationally, CEO and Managing Director Paul D’Amato said.
“There has generally been greater interest in venture capital nationally and in Michigan over the past few years,” D’Amato said. “Venture capital is growing and it has gained a lot of new investment.”
Michigan Capital Network manages four venture capital funds and five affiliated angel investor groups: great angels in Grand Rapids, Ka-zoo Angels in Kalamazoo, wood angels in Detroit, flint angels and Blue Water Angels in Midland.
D’Amato called the commitments to the fourth fund a “large amount”. Investors include high net worth individuals, family offices and institutional investors.
“We are thrilled with the support and it will allow us to really step out and impact Michigan’s ecosystem,” D’Amato said. “It will be exciting to be able to support some amazing businesses in Michigan.”
Michigan Capital Network focuses on seed and round investments, often in tandem with other investors, for startups primarily involved in life sciences, advanced manufacturing and software, which are “relevant” sectors. for Michigan and these are the centers that in many respects Michigan has the strongest capabilities D’Amato also cited the strong start-up activity and support of universities in the state for these industries.
Since forming 18 years ago as the Grand Angels, Michigan Capital Network angel groups and the top three venture capital funds have collectively invested millions in more than 100 startups that have collectively created 2,000 jobs. The top three venture capital funds accounted for half of the investments and saw 18 exits, D’Amato said.
The ranks of successful startups backed by venture capital funds include Grand River Aseptic Manufacturing Inc., Tetra Therapeutics Inc., Facilities Health Inc.and HealthBridge Financial Inc.
The fund’s latest seed investments are in Quint LLC Workspaces, a Zeeland producer of home office furniture; Midland-based water filtration company Accelerated Filtration Inc.; and based in the Netherlands Coin LLCwhich has developed a one-way video interview platform designed to streamline recruitment.
As Michigan Capital Network continues to raise capital for the fourth fund, the pipeline of potential investments remains strong, D’Amato said.
“We’re seeing a lot of really exciting businesses in and around Michigan,” he said.
Never miss the biggest stories and breaking news from MiBiz. Sign up to receive our reports straight to your inbox every weekday morning.