Hot capital market balanced by lack of early stage investors

January 10, 2016 - MiBiz

Michigan’s venture capital and angel investment industry is growing up fast, getting more sophisticated and starting to make later-stage investments into companies. Meanwhile, private equity firms continue to operate in a hot acquisition market, and family offices are taking a large presence as well and competing more for deals. Those were some of the perspectives from a panel of professionals who met with MiBiz for a roundtable discussion on the state of private capital in Michigan.

According to Dale Grogan, managing director of the $15.1 million Michigan Accelerator Fund I and managing director at Charter Capital Partners, "The venture industry is maturing significantly in Michigan. After the thaw in Michigan in 2010 and ’11, lots of funds started coming into being and so we’re now seeing that maturing where those initial investments were made. We’re starting to see a separation in the quality of the investments, and there’s a separation also occurring in terms of the entrepreneurs. Those guys that know what they’re doing that have access to the markets are finding velocity. Those that don’t are still going to have a tough time, particularly when you look at the angel groups and early-stage investors moving downstream."  more

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