BLOOMFIELD HILLS – Last August, the Great Lakes Angels announced a Sidecar Fund to invest primarily in Michigan start up companies developing IT, medical and disruptive technologies. Now that fund, and a Venture Capital Fund that would have taken those investments to the next level, have both been tabled for lack of interest by potential investors.

The Great Lakes Angels Sidecar Fund would have invested from $50,000 to $250,000 in pre-seed and seed start ups.

“The Angel fund is tabled for right now,” said Great Lakes Angels President David Weaver.?We will re-evaluate whether to pursue it again later this year.”

The Angel Fund had hoped to raise up to $5 million and become the farm team that funneled more mature deals to a $50 million Venture Fund managed by Wingspan Partners, which would be focused on Michigan and Midwestern start ups. Wingspan also would have been the Angel Fund’s manager. Not any longer, said Wingspan Partners CEO Ray Gunn.

“I developed the Angel Sidecar Fund plan,” Gunn said. “I spent $20,000 on the offering agreement with my attorneys. I spent five months putting together a road show. But most of the guys I talked to said that angel investing is their retirement, and they like to make active investments and sit on the boards of the companies they invest in.”

Gunn said he approached two other angel investing groups in the state, Grand Angels in Grand Rapids and Ann Arbor Angels, to see if they’d be interested in participating in a statewide fund. Both groups, he said, expressed, “Zero interest in creating a Michigan Angel fund.”

Spokesman for the Grand Angels and Ann Arbor Angels confirmed Gunn had approached them, but also said their members didn’t want to put their money into a passive investment where the fund manager would make all the decisions.

Gunn also confirmed that Wingspan Ventures Technology Fund I, a fund that would have worked with the Angel Sidecar Fund, has been tabled as well, due to the state of Michigan’s 21st Century Jobs Fund activities. The state plans to invest up to $396 million over the next two years in promising Michigan technology companies.

“Everyone we’re talking to is telling us, ‘Go get the money from the state,'” Gunn said. “Well the state isn’t investing in Venture Capital companies yet.”

A state-backed Fund of Funds, called the Venture Michigan Fund, would invest in VC firms that would agree to invest in Michigan technology and life sciences companies. But that Fund, announced with much fanfare 18 months ago, is still not active and probably won’t be until late spring or early summer, sources told Mitechnews.Com.

Gunn said the state’s investment efforts have slowed down Wingspan’s ability to get limited partners investing in its VC fund by six months or more. But he remains optimistic Wingspan Ventures Technology Fund I will become a workable project later on.