HOLLAND – Grand Angels, one of nearly a dozen angel investing groups in Michigan, announced it invested more than $3.5 million in 12 companies during 2015, the private equity finance group’s most active year since it was founded in 2004.

Grand Angels has deployed $19.6 million in the past 11 years. The group expects it will surpass $20 million during the first quarter and around $3 million for this year, said Jody Vanderwel, president of Grand Angels.

“West Michigan, and the entire Great Lakes Region, is attractive to entrepreneurs and startups because of our collaborative spirit and atmosphere of mutual respect,” she said. “Grand Angels supports that environment by choosing to invest in enterprises that will not only yield a return, but will also have a positive effect on our region through business growth, job creation, and talent attraction and retention.”

2015 saw a number of milestones for Grand Angels, including the launch of its second fund, GA Venture Fund, focused on technology and life sciences companies that are currently generating revenues, or are pre-revenue with a clear path to exit. As one of Michigan’s newest VC’s, this fund closed five of the 12 deals during 2015.

“We are excited by the quality and unique breadth and scope of early-stage companies that we can support through our experience and capital,” said Paul D’Amato, director of Grand Angels’ Fund II. “We look forward to continuing to find, hone and cultivate the many outstanding early- stage companies in our community in 2016.”

Grand Angels first fund was capped at $2 million; its second fund closed at almost $7 million, a more than three-fold increase. 

“Entrepreneurship is reshaping Michigan’s economy and angel investing is crucial for companies looking to break into these high risk, high reward fields,” said Vanderwel. “2015 was a record setting year for Grand Angels as we work to accelerate long-term economic success in Michigan.”

Like many angel groups, Grand Angels is a group of individuals who invest funds into early-stage companies. Each member is committed to using their financial, intellectual and networking capabilities to foster success in emerging West Michigan companies and enhance economic development.

Grand Angels began in 2004 with members who came from old West Michigan money, she said. But now the demographics of the group have changed. Members are younger, and have broader business backgrounds.

Venderwel said Grand Angels typical invests $250,000 to $300,000 per deal, and usually syndicated with other angel or venture capital investors.

Grand Angels invests in companies in four business segments: Life Science, Business-to-Business technology, Advanced Manufacturing and Advanced Agriculture. She said the group’s sweet spot is Michigan startups, but the group also is looking at potential investments within a three to four hour drive from Michigan. Of the nearly $20 million invested, about one third has gone to Life Science companies, one-third into technology start-ups and the remaining third into a combination of deals, Vanderwel said. 

“I think much there is more understanding these days of what Angel investing is both among potential investors and entrepreneurs,” she said. “Angel investing is beginning to take hold nicely in Michigan. But it has taken a lot of effort to recruit our members, mainly on a one-to-one effort. People become angel investors because someone they know is an Angel and is having a good financial experience. That is what encourages them to join.”

Additional highlights from portfolio companies in 2015 include:

ProNAi Therapeutics, Inc. (NASDAQ: DNAI) closed its IPO on July 21, 2015
Tetra Discovery Partners closed a $1 million round used to advance the company toward clinical trials.

HistoSonics closed a $3 million bridge round used to fund an extended round of clinical human trials.

Vestaron Corporation received EPA approval to remove the bee toxicity warning from its SPEAR Biopesticides.

Zipments was acquired by same-day delivery service provider Deliv.

Ablative Solutions received the CE Certificate of Conformity allowing the company to apply the CE Mark to its Peregrine SystemTM Infusion Catheter

For more information, click on http://grandangels.org/