ANN ARBOR ? Mitechnews.Com is launching a series of profiles of Michigan Venture Capital companies that can offer entrepreneurs possible funding sources. Our first profile is of North Coast Technology Investors, an Ann Arbor firm that invests in early-stage technology driven companies.
The profiles will provide a quick snap shot of the types of technologies each VC invests in, how much money they have to invest, what companies that money has been invested in so far and who the principals are.
North Coast has raised a $100 million fund from which it invests from $500,000 to $4 million over the life of a business investment. Most of the investments North Coast makes are in the form of preferred stock. An initial investment may be as little as $100,000 in a start up company.
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Typical investments are in early stage technology-driven companies with outstanding growth prospects. Most investments are made in companies where an entrepreneur, an emerging technology and a promising market opportunity are identifiable and consistent with the North Coast?s investment model. But North Coast also invests in promising seed stage companies where fundamental advances in software and communications technology are creating the opportunity to build major businesses in the Midwest.
While North Coast pursues enterprise software and e-commerce investments, the firm is drawn to manufacturing, distribution, and materials science where software and e-commerce are creating fundamental change. Those companies are in Indiana, Michigan, and Ohio.
The firm?s portfolio of investments include:
Advanced Material Process Corporation – Fatigue strength improvement of metal components for the automotive, aerospace and heavy equipment industries. Acquired by Metal Improvement Company (MIC) a wholly owned subsidiary of the Curtiss-Wright Corporation.
Approach Software Corporation ? Relational database client for Microsoft Windows for non-programmers. Acquired by Lotus Development Corporation, now a subsidiary of IBM.
Arbortext – Enterprise software and XML-based authoring and publishing tools. BalaDyne Corporation Precision active balancing equipment for the machine tool, turbo-machinery and aerospace industries. Acquired by the Lord Corporation.
Camile Products – PC-based Laboratory Automation and Control. Acquired by Argonaut Technologies.
Chromatic Research – Media processors and software. Acquired by ATI Technologies.
Colorbok – Stationery and related products. Acquired by FdG Associates.
Everex Systems – Desktop, notebook and palm computers.
Excera Materials Group – commercializing a family of proprietary, high-performance ceramic/metal composite materials and products using a novel, patented manufacturing process.
Fulcrum Composites – is a technology and processing company dedicated to providing solutions to structural problems through the development and application of thermoplastic composites.
Intelligent Controls – Automotive engine engineering services and products. Acquired by Cosworth, a subsidiary of Audi and Volkswagen Group.
MaxFunds.com – A Better Way of Looking at Mutual Funds.
Mechanical Dynamics – Software and services for mechanical systems simulation and virtual prototyping. Acquired by MSC Software Corp.
Nematron Corporation – PC-based industrial automation products and software for direct machine control, process visualization and data acquisition.
Nephros Therapeutics – Develops cellular medicine systems, replacing vital
functions lost when organs fail.
Open Networks Engineering – Convergence management solutions for telecommunications equipment manufacturers and service providers.
Procite – Information reference management software. Acquired by Research Information Systems, a division of the Institute for Scientific Information, a subsidiary of The Thomson Corporation.
Shertrack – Analytical software applications for the optimization and simulation of inventory control in the continuous process industries.
Solidica – A start up company with a breakthrough technology advantage in rapid prototyping (RP) and rapid tooling (RT) technology.
Virtela Communications – Provides advanced private and public networking solutions for major corporations.
Principals include:
Lindsay Aspegren
A co-founder of Chromatic Research, a fabless semiconductor company formed in 1993. Chromatic targets the multimedia PC market with its Mpact media processor and an extensive library of software. Lindsay was responsible for raising capital and licensing agreements with Toshiba Corporation and Rambus.
Aspergren received an M.B.A. from the Harvard Graduate School of Business Administration in 1992. He graduated magna cum laude with distinction from Yale University in 1985 with a B.A. in History and was awarded the McKim Prize.
Hugo Braun
Prior to founding North Coast, Braun was a partner in Access Ventures, a Michigan based investment firm with over $30 million under management. In addition, Braun has co-managed BankAmerica Venture Capital’s $100 million venture portfolio. Investments included computer hardware and software, semiconductors, medical devices, telecommunications and retail. Braun was also a management consultant with Strategic Planning Associates, a spin-off of the Boston Consulting Group, based in Washington, DC.
Braun received an M.S. in Management from the Sloan School of Management at MIT in 1985. He graduated magna cum laude with distinction from Yale University in 1980 with a B.A. in Economics.
Kurt Riegger
Riegger joined North Coast in early 2001 as its first Venture Partner. He is a seasoned business leader with 20 years of experience managing and growing high tech companies. He has co-founded and sold two software companies: SSG acquired by AppNet and WorkWell acquired by Liberty Mutual Insurance Group. Kurt was also the Chief Operating Officer of Intelliseek, a leading provider of enterprise intelligence solutions. Prior to joining Intelliseek, he was the COO of a business unit at Liberty Mutual charting the course for new e-commerce initiatives.
Riegger holds a dual BS in Mathematics and Molecular Biology with distinction from the University of Michigan and has completed Masters work in Computer
For additional information, click on NorthCoastVC.Com
