The Venture Michigan Fund Tuesday announced final commitment approvals totaling $32.5 million to fund managers Arsenal Ventures, Early Stage Partners, TGap Ventures and Triathlon Medical Ventures.
The four managers represent diverse industry expertise and a strong dedication to investing in Michigan.
With this announcement, the VMF is now fully committed with $95 million in commitments to 11 venture capital funds.
Arsenal Venture Partners of Palo Alto, Calif. and Winter Park, Fla. is an early stage homeland security and defense venture capital firm. Arsenal targets investments in a broad range of technological sectors including networking, communications, computing, information technology, software, microelectronics, semiconductors, sensors, advanced materials, energy technology and nanotechnology. Michael Psarouthakis, previously a Senior Portfolio Manager with the Michigan Economic Development Corp., will join Arsenal to establish a Michigan office and assist Arsenal with identifying and developing Michigan-based companies for investment.
Early Stage Partners of Cleveland, Ohio was formed in 2001 to provide early-stage equity capital to companies primarily located in the Midwest. Early Stage invests in companies in the technology, life sciences and materials sectors with a primary focus in companies engaged in biosciences, information technology, advanced manufacturing, polymers and advanced materials, and advanced energy. Early Stage has been actively seeking companies for investment in Michigan and many of Early Stage’s partners have significant ties to the University of Michigan. Early Stage will establish an office in Ann Arbor to be staffed by a full-time senior investment professional familiar with the Michigan venture capital landscape.
Kalamazoo-based TGap Ventures was founded in 2001 by Jack Ahrens and Pete Farner who have had a professional relationship for the past 16 years. TGap focuses primarily on early-stage investments throughout the Midwest and looks to invest in medical devices, software, specialty manufacturing, Internet, telecommunications, health-care and other high growth companies.
Triathlon Medical Ventures, a Cincinnati-based venture capital firm, typically invests in life sciences companies. Trathlon provides equity capital to early and expansion stage companies with proprietary biomedical technology platforms or products addressing significant human healthcare needs. Triathlon recently announced that Mina Sooch will join the firm as a Partner. Mina has a history of venture capital investing in Michigan and was previously a Partner at Kalamazoo-based Apjohn Ventures and is currently Board Chair of the Michigan Venture Capital Association.
“We look forward to working with such an experienced and diverse group of fund managers who have all demonstrated a strong commitment to investing in Michigan,” said Kelly Williams, Co-Head and Managing Director of Credit Suisse’s Customized Fund Investment Group, the VMF fund manager. “We are extremely happy with the managers in VMF’s portfolio and are excited about the investments that they have and will continue to fund in Michigan.”
VMF’s investments in Arsenal Ventures, Early Stage Partners, TGap Ventures and Triathlon Medical Ventures represent the latest investments in a portfolio with multiple Michigan focused investment managers. As a result of these investments, VMF is now fully committed with $95 million in commitments to eleven venture capital funds. In addition to these new investment commitments, the program also includes Arboretum Ventures, Chrysalis Ventures, Fletcher Spaght Ventures, North Coast Technology Ventures, Nth Power, RPM Ventures and Venture Investors Early Stage. These managers have already invested $27 million in eleven Michigan-based companies representing a meaningful level of jobs. Including the investments received by the VMF funds, these eleven Michigan portfolio companies were able to attract total capital of nearly $200 million, evidencing VMF’s early success in attracting additional investment capital to the state of Michigan.
The individual investment commitment amounts for the four investments were not disclosed.
The Venture Michigan Fund was created in 2006 to grow and develop venture capital funds that have a presence in Michigan and that target investments in Michigan-based early stage companies engaged in research, technology and new product development. Fund investments focus on a variety of emerging technologies including advanced manufacturing and industrial technology, alternative energy, healthcare and life sciences, homeland security and defense, and information technology. Venture capital funds receiving capital commitments are asked to invest in Michigan-based companies with at least an amount equal to the commitment received from VMF.
More at www.venturemichiganfund.org.
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