Detroit Free Press
As expected, data released Thursday show venture capital investment in Michigan companies plunged in 2009, but more money is expected to flow to promising businesses in the state this year.
In 2009, venture capital firms invested $130.6 million in 33 Michigan companies, about half the $251.4-million investment they made in 45 state firms in 2008.
The figures come from the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.
Nationwide, venture capital activity also declined because of the financial crisis, with $17.7 billion invested in 2,795 companies. That's off 37% from the $28 billion poured into 3,985 businesses in 2008.
Among the states, Michigan ranked 19th for venture capital investment last year, falling from its 16th spot in 2008.
Last year, Danotek Motion Technologies, a Canton-based alternative energy company, garnered the most venture dollars in Michigan, attracting $13.2 million.
Following close behind were the pharmaceutical firms Lycera, which received $12.9 million, and NanoBio of Ann Arbor, which obtained $10 million. Lycera recently moved its headquarters to Cambridge, Mass., from Plymouth.
Though Michigan has met with some success in growing its small venture capital industry, the state's increasing number of start-up firms are still having a tough time getting the capital they need.
Mina Patel Sooch, president of the Michigan Venture Capital Association and founder of Apjohn Ventures in Kalamazoo, expects conditions will improve this year, with more dollars flowing into local venture capital firms.
She also anticipates that a larger number of venture-backed Michigan companies will be sold or go public.
"We all think the market is opening up a little bit," Sooch said.
In 2009, venture capital firms invested $130.6 million in 33 Michigan companies, about half the $251.4-million investment they made in 45 state firms in 2008.
The figures come from the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.
Nationwide, venture capital activity also declined because of the financial crisis, with $17.7 billion invested in 2,795 companies. That's off 37% from the $28 billion poured into 3,985 businesses in 2008.
Among the states, Michigan ranked 19th for venture capital investment last year, falling from its 16th spot in 2008.
Last year, Danotek Motion Technologies, a Canton-based alternative energy company, garnered the most venture dollars in Michigan, attracting $13.2 million.
Following close behind were the pharmaceutical firms Lycera, which received $12.9 million, and NanoBio of Ann Arbor, which obtained $10 million. Lycera recently moved its headquarters to Cambridge, Mass., from Plymouth.
Though Michigan has met with some success in growing its small venture capital industry, the state's increasing number of start-up firms are still having a tough time getting the capital they need.
Mina Patel Sooch, president of the Michigan Venture Capital Association and founder of Apjohn Ventures in Kalamazoo, expects conditions will improve this year, with more dollars flowing into local venture capital firms.
She also anticipates that a larger number of venture-backed Michigan companies will be sold or go public.
"We all think the market is opening up a little bit," Sooch said.
No comments:
Post a Comment