You want funding? You get funding. And you get some too. And all those quiet requests in the back too. Well maybe Michigan Venture Capitalists or VCs were not quite that generous with funding but 2012 saw not only more VC deals but saw a huge influx of capital into Michigan Businesses.
In 2011, investors did 36 deals totaling $84.75 million in investments in Michigan startups. But in 2012 those numbers were dwarfed by the 47 deals totaling $232.31 million done by VCs. Those figures were the third highest since 1995 ($356.44 million in 2000; and $253.47 million in 1999). This was also in the face of a 10% decline in the total investments made in the US.
West Michigan-based companies received venture funding including Tolera Therapeutics in Kalamazoo and Intervention Insights Inc. in Grand Rapids in the last quarter of the year. This is just further proof of the talent level that can be found right here locally.
While your startup might not be ready to seek a $10 million capital infusion, this data shows that if you ever get that point being in West Michigan does not limit your ability to get that funding. Michigan has a long history in manufacturing so there are VCs that focus in that area. Also with the exciting new technology growth and life science businesses in West Michigan, there are plenty of VCs that are funding those businesses locally too.
Knowing when is the right time for funding and being completely prepared to receive that funding are extremely important. One of the factors that has to part of your funding planning is what are you going to use that capital infusion for. The idea of funding can seem like a necessity but entrepreneurs do not think it through. Investors are going to want to know what you are going to do with that money and going to test you to know if you asking for the correct amount. Advisers can make sure that you are prepared and have the best chance of success.
Source: “Report: VC investors put $232M in Michigan companies in 2012” by Mark Sanchez of MiBiz