The Renaissance Venture Capital Fund made its name as a fund of funds in the venture capital world, making sizable investments in smaller venture capital firms either based in Michigan or establishing a presence in the Great Lakes State. Now the fund is starting to make headlines for investing directly into startups.
The
Renaissance Venture Capital Fund, which has its offices in both Detroit and Ann Arbor's downtowns, has made three direct investments in maturing startups that are backed by its own fund of funds. Those investments, all made in 2013, have a Michigan focus and more are in the pipeline.
"Those funds (that the Renaissance Venture Capital Fund backs) tend to invest in early-stage companies," says Chris Rizik, CEO of the Renaissance Venture Capital Fund. "We have been monitoring them as they grow. Three of them reached a level of maturity that we could invest in them in 2013."
That level was the $8.3 million Series B round invested in
ArborMetrix late last year. It also includes venture capital rounds for Fidelis SeniorCare and
Swift Biosciences. Those investments range between $500,000 and $750,000 per startup.
"You will probably continue to see 1-2 direct investments per year for the foreseeable future," Rizik says.
The Renaissance Venture Capital Fund has made 14 investments since its launch a few years ago, and is preparing to announce its 15th investment in a couple of weeks. It has committed $60 million of its initial $100 million fund. The fund is primarily capitalized by Fortune 1000 firms based in Michigan.
Source: Chris Rizik, CEO of the Renaissance Venture Capital Fund
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.