ANN ARBOR – The Ann Arbor Angels investment group reported that it did 26 deals worth $82 million in 2005, more than half in IT-related companies, including $7.4 million in life sciences start ups.

Funds also were invested in companies in the advanced automotive, consumer products, financial services, homeland security/defense, manufacturing technology, and nanotechnology sectors.

“Angel investment is critical to the development of new exciting companies in our state,” said Michael Cole, vice president of the Technology Industry Group at Bank of Ann Arbor and managing director of A2A. “Southeastern Michigan’s angel investment community is world-class and through the success of A2A we are pleased to now have an opportunity to provide this vitally important information to the public.”

Certainly the biggest deal of last year for the Ann Arbor Angels was a $32 million third-round recapitalization for interactive promotions agency ePrize. The transaction was lead by angel investors Gary Shiffman of Sun Communities; Brian Hermelin of Active Aero; and Dan Gilbert and David Katzman of Quicken Loans/Rock Financial/Cleveland Cavaliers, Camelot Ventures, with Bank of Ann Arbor providing $500,000 of pre-recapitalization debt financing.

Machine vision company Coherix raised more than $6 million in 2005 using the new Michigan Innovation Certificate of Deposit (MICD). Coherix has raised in excess of $8 million of a targeted $11 million to date.

“The state of Michigan’s angel investment community continues to demonstrate its strength and vision, evidenced by the companies and investments highlighted in the 2005 A2A investment report,” said Jim Epolito, president and chief executive officer of the Michigan Economic Development Corporation (MEDC). “The $32 million investment in ePrize was one of the largest angel deals in the Midwestern United States in 2005. Over the past century Michigan’s angel investors have helped to launch automobile companies, chemical companies and cereal companies, providing the foundation for our great state’s economic prosperity.

“The 21st Century Jobs Fund initiative will further boost angel investments in Michigan, at this critical junction, with the creation of capital gains roll-over incentives, pre-seed funds and commercialization investments,” he said. “These programs will help Michigan’s angel investors launch the companies that will drive our economy for the next 100 years.”

Nano-particles company Nanocerox closed an over-subscribed $2.4 million Series B round. A2A lead the funding with participation from members of the Great Lakes Angels. Bank of Ann Arbor provided $240,000 of equipment financing and a $100,000 working capital line of credit.

Flow cytometer device company Accuri Instruments closed an $800,000 Series A preferred equity transaction and a $1.5 million convertible debt round in 2005. Members of A2A lead the funding with participation from the Great Lakes Angels and Core Network. The company is currently closing an additional round of funding.

Among the other angel rounds participated in by A2A in 2005 were $1.5 million for laser navigation company Self Guided Systems, $1.5 million for drug discovery analytics company Genetics Squared, $420,000 for Pier 3 Technologies and $150,000 for Myrmidon Biomaterials.

Other key A2A funding and acceleration service partners during 2005 included Ann Arbor SPARK Business Accelerator, Amherst Fund LLC, Arboretum Ventures, Bodman LLP, CrystalPoint Partners, Dykema Gossett PLLC, Inovo Technologies, Plymouth Venture Partners, Menlo Innovations, Miller Canfield PLC, Online Technologies, Schox PLC and Seneca Partners.

For more on the Ann Arbor Angels, click on AnnArborAngels.Com