The region's newest angel investor group, the BlueWater Angels, closed its first deal just before Christmas.
The deal came nine months after the forming of the group.
Midland-based Fulcrum Composites will receive more than $200,000 to continue research, development and marketing for its alternative energy business venture.
The investment by BWA is the part of a larger investment round which is expected to incorporate over $1 million in total funding.
Fulcrum Composites is dedicated to providing innovative solutions to structural problems in the solar and wind energy through the application of lightweight structures. The company was formed in 2004 as a spin-off from The Dow Chemical Co.
The company has received funding from North Coast Technology Investors, Dow Chemical, and Ann Arbor Spark and was recently recognized with an Innovation Award from Midland Tomorrow.
“This will certainly help to move us ahead," said Fulcrum Composites president Chris Edwards. "And, as important as the money is to us, the support of the people involved in the BlueWater Angels is equally important. BlueWater Angels membership includes many successful business people, with vision and leadership in sectors where Fulcrum is heading. This is not an easy economic climate and we are grateful to the BlueWater Angels and all of our investors for their confidence in us and the future of Michigan based technology companies.”
During the investment and analysis process, the BlueWater Angels considered more than 90 opportunities from across Michigan. The process began with several companies presenting to the group, which narrowed the field based on several factors. The final stages of due diligence included close examination of the company -- technology, market conditions, the management team and more -- and negotiations to ensure successful investing and continued growth.
This investment demonstrates the value of angel investment groups in keeping investment capital focused on Michigan and Michigan-based businesses, and how a rigorous review process builds support exponentially.
According to Brent Case, executive director at MidMichigan Innovation Center and managing director for the BlueWater Angels, “The investment in Fulcrum involves over a dozen members, demonstrating that the BlueWater Angels are indeed interested in backing promising companies that can clearly demonstrate the value proposition to investors. We have a top-notch group of investors ready to make a difference here in Michigan. The message I’d like to deliver to entrepreneurs is that good deals will get funded.”
In terms of what Fulcrum learned through the process and what advice they might give fellow entrepreneurs, Edwards said that active pitching of your company’s plans helps you learn and focus on what matters to investors. “And, every start-up needs external champions to help guide them,” he said.
According to the Angel Capital Association, most angel groups see 100 deals before they close on their first investment, which usually takes about a year. In 2009, BlueWater Angels plans to continue to focus on investment opportunities within Michigan and in the mid-West with consideration of more deals on an ongoing basis.
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