The managers of Michigan Accelerator Fund I are seeking to raise up to $5 million from investors to provide further financial backing to portfolio companies. Four of the Grand Rapids-based venture capital fund’s eight existing portfolio companies may need additional capital in the near future, said co-Managing Director Dale Grogan. Capital raised for the new MAF Opportunity Fund LP could go to make follow-on investments in those companies, plus one new investment, Grogan said.
Grogan said he remains confident that Michigan Opportunity Fund will raise the $5 million by this summer. Part of the pitch to prospective investors is that the new fund will offer later-stage venture investments to companies with less risk than when they first began. Each of the companies has long been vetted and their innovation and technology have been validated in prior investment rounds, Grogan said.
“We have the benefit of living with these companies,” he said. “These are companies we have known intimately. They are very hands-on investments for us.” Grogan and his partner, John Kerschen, formed Michigan Accelerator Fund I in 2010. They hope to eventually create a much larger successor venture fund in the future. more