After accelerating to nearly a quarter-billion dollars in 2012 activity, the pace of venture capital funding for Michigan companies has slowed significantly in 2013. Michigan companies netted just $20.7 million in VC funds through the first six months of this year, down from $80.6 million in last year's first half, according to the PWC MoneyTree Report. The second quarter was especially paltry, with just $3 million going to Michigan companies, the lowest quarterly total since 1995, according to MoneyTree statistics.
While the pace may have slowed, consider it a breather rather than a grinding halt, local experts say. "It is more of an anomaly than anything," said John Kerschen, who helps raise capital for companies and VC funds, including the Grand Rapids-based Michigan Accelerator Fund I, which he co-manages. Growth in the number of venture funds that have set up shop in Michigan over the past five years, increased activity among high net-worth investors and the state's overall economic recovery have set the stage for a new burst of activity. Plus, "we haven't stopped producing new technology or medical devices or entrepreneurs who need capital," Kerschen said. more