PLEASANT RIDGE ? In what could possibly be the largest angel capital investment ever made in a Michigan technology company, ePrize announced Monday that four Detroit-area business leaders invested $32 million into the interactive promotions agency.

The $32 million investment was done by local investors Brian Hermelin and Gary Shiffman, and joined by Livonia, Mich.-based Camelot Ventures, which is led by Detroit businessmen David Katzman and Dan Gilbert.

Gilbert is founder and chairman of Quicken Loans/Rock Financial and majority owner of the NBA’s Cleveland Cavaliers. Katzman is vice chairman of Quicken Loans/Rock Financial and also an owner and vice chairman of the Cavaliers.

Hermelin and Shiffman have been active investors in ePrize since 2001. Gilbert and Katzman are new investors. All four will join the ePrize board of directors alongside ePrize founder and CEO Josh Linkner and COO Robb Lippitt.

?Our new board members will add considerable strategic value to ePrize, acting as mentors and bringing a wealth of experience to enable the company to grow,? Linkner said. ?Our sales revenue has grown five-fold since 2002 and we are now fortunate to work with many of the world’s top brands. This investment will enable us to acquire new clients, develop new technology and continue our overall expansion.?

And certainly with the advice of the new board members, ePrize will continue its rapid growth, Linkner said.

?Danny Gilbert is a mentor and an unbelievable entrepreneur,? he said. ?Our focus now is to build the next big Detroit company.?

To start doing that, Linkner, 35, said ePrize will expand its headcount from about 150 employees to north of 275 by year?s end. It also will pump more money into research and development on new products. And with a beefed up war chest, ePrize will shop for other companies to fold into its portfolio as ePrize tries to evolve into the prototype ad agency of the future.

ePrize says it is the global leader in the multi-billion dollar interactive promotions industry. The company develops online promotions, including sweepstakes and reward programs, which lets clients go directly online to their customers.

?ePrize has a talented creative team that has coupled marketing expertise with unique technology and they follow through on the back-end with fulfillment,? said Gilbert. ?The bottom line is they produce highly successful online promotions that drive results for their clients. We look forward to collaborating with them and helping them continue to grow.”

The $32 million angel investment is easily the largest angel round for any company in Michigan in a long time, regardless of the industry, said David Weaver, President of Great Lakes Angels in Bloomfield Hills. Most angel investments are $1 million or less.

?What makes this attractive for these individuals is ePrize has a significant client base and a lot of upside for growth,? Weaver said. ?With that investment and the board seats, these four seasoned entrepreneurs will bring a lot of smart play with their money to help Josh grow that business even faster. I?m sure Josh has his eyes on some acquisition targets right now.?

Jan Ganfinkle, president of the Michigan Venture Capital Association, said the ePrize angel investment shows deal flow remains sold for private equity finance investments in Michigan companies.

?The energy is definitely positive this year,?? she said, ?and with the 21st Century Jobs Fund moving forward rapidly, it looks like it will be a big investment year in Michigan.?

This story was written by Mike Brennan, Editor & Publisher of Mitechnews.Com.