The Michigan Angel Community recently released its 2019 annual research report. The study aimed to capture data on meaningful metrics by surveying angel groups, individual angels, as well as angel-funded companies.
“Since we started publishing this report in 2017, angel activity across Michigan has steadily increased,” explained Skip Simms, Michigan Angel Fund managing director and Ann Arbor SPARK senior vice president. “Our inaugural report discovered 797 angels in Michigan, who invested $41.9 million in startups here. This past year, that number swelled to 1,322 angels who invested $73.6 million in Michigan companies. This activity is a testament to the quality of businesses originating here and the support they receive to nurture their long-term growth.”
KEY FINDINGS
There were 1,322 angels who invested in Michigan companies in 2019.
Angels invested $73.6 million in Michigan companies.
A total of 106 companies received angel funding.
Of the companies that received angel funding, 23 were women-owned and 24 were minority-owned.
The companies that received angel funding employed more than 950 people.
These Michigan companies attracted a total investment of $226.6 last year, which includes venture capital on top of the angel dollars.
While the majority of companies to receive angel funding were information technology (IT) businesses, life sciences companies received more investment dollars. Angels invested $21.7 million in 51 IT companies and $29.6 million in 31 life sciences companies. Of note, life sciences surpassed IT in total investment dollars raised, attracting $118.8 million compared to IT’s $54.5 million.
Michigan angels invested $12.7 million in 11 advanced materials and manufacturing companies, $6.4 million in seven consumer product companies, and $3.3 million in six mobility companies. Companies from these industries attracted total investment of $66 million in 2019, which includes VC in addition to angel dollars.
The Michigan Angel Community’s annual report includes only angel activity in the high-tech sector. Angel investment in traditional, non-tech businesses — real estate, retail, professional services, and restaurants — are not included in this report.
The Michigan Angel Community is an initiative to accelerate the growth of angel activity in Michigan as well as investment into Michigan companies. The Michigan Angel Community educates and expands the base of angel investors in Michigan, holds statewide events and programs, and fosters greater collaboration, affiliation, and social engagement among angels. Its research report is designed to help guide and promote the growth of the market with policymakers, potential angels, and out-of-state investors.
The Michigan Angel Community is supported by the William Davidson Foundation.
ABOUT ANN ARBOR SPARK
Ann Arbor SPARK, a non-profit organization, is advancing the region by encouraging and supporting business acceleration, attraction and retention. The organization identifies and meets the needs of business at every stage, from startups to large organizations. Ann Arbor SPARK collaborates with business, academic, government, and community investor partners. For more information, please call (734) 761-9317 or visit www.AnnArborUSA.org.
