InvestMichigan
Description
InvestMichigan! Growth Capital Funds represent a significant initiative designed to stimulate economic growth and foster job creation within the state of Michigan. Established with capital from the Michigan State Retirement Systems, these funds were strategically managed by two distinct entities: Beringea, a well-established venture capital firm, and GCM Customized Fund Investment Group, L.P. (now part of GCM Grosvenor), an institutional alternative asset manager. The program's core objective was to provide essential growth capital to high-potential, Michigan-based companies, thereby diversifying the state's economy and supporting its entrepreneurial ecosystem.
The initiative comprised two primary funds. The first, InvestMichigan! Growth Capital Fund I, was launched in 2008 with a substantial capital commitment of $120 million. This was followed by InvestMichigan! Growth Capital Fund II, which commenced operations in 2012 with an additional $100 million in capital. Beringea was responsible for the direct investment component, identifying and investing directly into promising companies across sectors such as advanced manufacturing, information technology, life sciences, and clean technology. Concurrently, GCM Customized Fund Investment Group managed the fund-of-funds portion, allocating capital to other Michigan-focused venture capital firms, thereby broadening the reach and impact of the overall program.
InvestMichigan! Growth Capital Funds typically targeted companies that had moved beyond the seed stage and were seeking capital for expansion, product development, or market penetration. Beringea, on behalf of the funds, generally sought to make initial investments ranging from approximately $1,000,000 to $10,000,000, with the potential for larger follow-on investments as companies achieved milestones. This focus on growth equity aimed to support businesses with proven models and significant scaling potential, contributing directly to the state's economic revitalization efforts by fostering innovation and creating sustainable employment opportunities across various industries.
Investor Profile
InvestMichigan has backed more than 52 startups, with 0 new investments in the last 12 months alone. The firm has led 4 rounds, about 8% of its total and boasts 28 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Series Unknown, Series A, Series B rounds (top funding stages).
- Majority of deals are located in United States, United Kingdom, Canada.
- Strong thematic focus on Health Care, Medical, Software.
- Typical check size: $1M – $10M.
Stage Focus
- Series Unknown (46%)
- Series A (15%)
- Series B (10%)
- Series C (8%)
- Series D (6%)
- Private Equity (6%)
- Seed (6%)
- Equity Crowdfunding (2%)
- Series E (2%)
Country Focus
- United States (92%)
- United Kingdom (6%)
- Canada (2%)
Industry Focus
- Health Care
- Medical
- Software
- Biotechnology
- Manufacturing
- Medical Device
- Information Technology
- Enterprise Software
- Electronics
- Mobile
Frequently Asked Questions
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