Michigan Angel Fund closes 1st investment vehicle at $2M

The recently formed Michigan Angel Fund has closed on its first fund and made its first investment this month. The angel-investment equity fund, which is managed by Ann Arbor SPARK, will provide early stage investments in Michigan-based start-ups. The idea is to help meet the increased need for seed funding from the Great Lakes State's deepening pool of start-ups. "Entrepreneurship has grown dramatically in the last decade in our state," says Skip Simms, managing member of the Michigan Angel Fund and a senior vice president at Ann Arbor SPARK. "The demand for early stage capital has grown with it." The Michigan Angel Fund has 70 members which have contributed $2 million to its first fund. The fund's first investment went to East Lansing-based BioPhotonics Solutions. The Michigan State University spin-out produces technology that automates the process of shaping and compressing ultrashort (femtosecond) laser pulses, ultimately improving their utility. Simms expects the fund to make 8-10 investments each year. The average investment will range in size from $250,000 to $700,000. Source: Skip Simms, managing member of the Michigan Angel Fund Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.