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March 1, 2021
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Business Review Western MI
Business Review Western MI
MI Venture Capital
(2007-08-15)
(wgvu) - Midway through the year, venture-capital investments in Midwest-based
life-sciences companies nearly equaled all of 2006.

Venture investors pumped $742.1 million into 64 companies in the Midwest
during the first six months of 2007, according to Cleveland-based
BioEnterprises.

That's more than double the $286.6 million invested in 49 deals during
the same period a year earlier.

Three Michigan companies all in the southeast part of the state
received $63.4 million in VC funding during the period, which compares
to $5.6 million for three companies during the first six months of 2006.

In terms of the amount invested, Michigan rated fifth among 12 states in
the latest quarterly BioEnterprise report on venture funding for
life-sciences companies in the Midwest.

Overall, the report shows a continued surge in life-sciences investing
in the Midwest by large venture funds based on the East and West Coasts,
BioEnterprises President Baiju Shah said.
Drawing them are successful exits and a significant amount of public
investments made by Midwest states to develop the industry.

Coastal investors have clearly discovered the Midwest's abundance of
investment opportunities, Shah said. The investment deals are getting
larger, and each region is seeing more East and West Coast venture firms
participate.

Ohio, Minnesota and Indiana led Midwestern states in health care
venture-capital attraction, accounting for more than two-thirds of the
region's total investment.

Within the industry, biopharmaceutical companies attracted the most
investment $462 million BioEnterprise reports. Medical device
companies in the Midwest received $148 million, and $132 million was
invested in health care software and service companies.

Even with the growth in life sciences, Michigan still ranks low
nationally in overall venture-capital investing, though the state rates
near the top in generating innovations.

Drawing more venture capital to the state is key to pumping new life
into a stagnant economy and keeping innovations in Michigan, said LeAnn
Auer, executive director of the Michigan Venture Capital Association,
which is formulating ideas to address the issue.

Once you have more capital to capture these kinds of deals, the better
off Michigan is going to be, Auer said. We just want to stir the pot
the right way.

The association last week awarded up to $150,000 each to two venture
firms in Michigan MacBeedon Partners and Plymouth Venture Partners,
both in Ann Arbor to defray the costs of raising new venture funds.

The Fund Development Award Program is one of three Venture Upstart
programs the association is implementing with $2.1 million from the
state's 21st Century Jobs Fund.

The program aims to help establish at least four new venture funds in
Michigan.
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