ROYAL OAK – Great Lakes Angels, one of the first angel groups in Michigan, now is adding an Angel Fund that could eventually do $18 million in investments in Michigan startups, primarily in the technology sector. Co-partners Doron York and David Weaver explain how it will work on this segment of M2 TechCast.
Technologies or particular interest are Fintech, Automotive, Mobility, Medical & Health, B2B, Blockchain, Wearable, and Agri-Tech.
Weaver, who founded Great Lakes Angels, said he wanted to invest more money in early stage companies, but was spending most of his time educating potential Qualified Investors. Only a handful of them showed up for meeting. A lot of good deals were left on the sidelines.
So the new format is almost like a Venture Capital fund. Qualified Investors place their money in the fund. The fund managers select the investments and the amount to be paid. Unlike other typical Angel capital investments (typically around $250,000), The Great Lakes Angel Fund could invest $1 million in deals.
Also discussed in this podcast are the following points:
1. Validation throughout the State on lack of seed level funding – inadequate seed level (pre-revenue) funding is contributing to founders going out of state
2. Most personal wealth is in SE Michigan, yet sitting on the sidelines
3. Lack of understanding about Angel investing asset class and confusion with VC’s
4. Investors can contribute to growing the job market and personal wealth potential via a fund – we do the heavy lifting and they can follow the companies in the portfolio. Might even be some mentoring opportunities or potential personal use of the technologies funded.
5. Tech Sectors of interest – fintech, automotive, technology in motion, medical & health, B2B, blockchain, wearable, agri-tech
To connect with Great Lakes Angels Fund click on https://www.citysideventures.com/funds/great-lakes-angels-fund/