KALAMAZOO – TGap Ventures, a Kalamazoo-based venture capital company, has closed its second fund, the now $26 million TGap Venture Capital II. TGap invests in Midwestern technology, information technology, medical device and and medical services companies.
TGap Venture Capital II drew investments from individuals in Indiana, Texas, Nebraska, Montana, Michigan, Wisconsin, Washington, Minnesota and Florida, said General Partner Jack Ahrens. The fund also picked up several new institutional investments, including the Venture Michigan Fund, the Renaissance Fund and the Carlson Family Foundation out of Minneapolis, which owns the Radisson Hotel group and TGI Fridays.
Ahrens said the fund seeks to invest $750,000 to $1.5 million in the first round of portfolio investments and up to $3 million total. Already TGap Venture Capital II has invested $1 million in NeoChord Inc., a Mayo Clinic spin-out that does micro-valve heart repair. Co investors were Heron Capital and Clarian Ventures of Indianapolis.
The second fund follows a very successful TGap Venture Capital I fund that raised $20 million and has invested 70 percent of the money in nine companies. Some 30 percent of the fund is reserved for follow-up rounds of investment with the existing portfolio, Ahrens said. Some 50 percent of committed capital and cash were returned to investors.
Fund I hit a couple of home runs with portfolio companies, including Minute Clinic, which was sold to CVS Pharmacy in August 2006 for $213 million. TGap Fund I invested $1.7 million in Minute Clinic; and Afmedica, a drug device company, that was sold for an undisclosed sum to Angiotech Pharmaceuticals of Vancouver, British Columbia.
For more information, click on TGapVentures.Com
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