GRAND RAPIDS – Michigan Capital Network, the state’s largest association of regional angel investing groups and the management entity for four venture capital funds, announced today that it has promoted Meagan Malm to the position of principal with the investment organization.
Malm joined MCN in 2020. She currently helps source investment opportunities, conduct due diligence and manage the firm’s portfolio companies. She serves on the Michigan Venture Capital Association Talent Committee and as an observer on the PhotoniCare Board of Directors.
Malm holds a business degree from the University of Michigan, Stephen M. Ross School of Business, with a concentration in Strategy and Entrepreneurial Studies. Upon graduation, she was selected as the sole recipient of the Raoul Wallenberg Fellowship, a two-year program to self-direct a research project in Tanzania, where she studied the application of mobile micro-financial tools. Additionally, she is a University of Michigan Hopwood Award Winner, Ross School of Business Carson Scholar, and a Fulbright Scholar.
In her new role, Malm will hold a decision-making role and will be responsible for identifying quality investment opportunities for the fund, conducting due diligence of target companies, and helping manage portfolio companies alongside the senior partners, Paul D’Amato, Dale Grogan, and Jody Vanderwel. She also will assist in other duties related to managing the firm’s operations.
“We feel extremely fortunate to add someone of Meagan’s unique background and set of skills to our executive team,” said Paul D’Amato, CEO and Managing Director of MCN. “Over the past two years, Meagan has demonstrated a keen instinct for identifying investment opportunities, provided excellent analytical skills, and displayed an unrelenting commitment to strengthening our portfolio on behalf of our members and investors. Her addition to the executive team will bring even greater depth and diversity of abilities to our organization.”
MCN’s five regional angel investment groups total more than 200 individual investors or members. Between the angel groups and the four venture capital funds, MCN has invested in more than 100 companies, creating more than 2,000 high-paying tech industry jobs in Michigan.
Click here to learn more about Michigan Capital Network and its portfolio of investments.
Grand Rapids, Mich. (Nov. 28, 2022) – Michigan Capital Network (MCN), the state’s largest association of regional angel investing groups and the managers of four venture capital funds, announced today it has named Ashley Ward as the new director of Grand Angels, and Troy Szopo as the new director of Woodward Angels. Additionally, the organization has named Michael Koziara as chair of a new Angel Investment Review Committee.
Ms. Ward is CEO of Hire for Hope, a professional recruiting, executive search, talent transformation and leadership training firm based in Grand Rapids. Additionally, she co-founded the Careerist LLC, a virtual career coaching platform for professionals and executives, is co-owner of Ward Ventures, a privately owned real estate investment portfolio company, and is a board member of the City’s Downtown Improvement District. She replaces Meg Eveland who stepped down earlier this year but remains as an advisor and member of the group.
Mr. Szopo is a Director at Stout, Risius Ross, a global investment bank and advisory firm based in Detroit. He has been with Stout for more than 15 years and specializes in valuation services. He has broad experience in various industries with a concentration in technology, media and telecommunications. In addition to his work at Stout, Szopo serves as a startup coach and mentor for New Enterprise Forum. He replaces Lynn Bishop who also stepped down earlier this year but remains as an investor with the group.
Ward and Szopo will join Leland Richards, director of BlueWater Angels, and Mike Gerfen, director of Ka-Zoo Angels, in guiding investment opportunities for members and fellow investors for the statewide angel investing organization.
Mr. Koziara will serve as the first-ever Chair of the new Angel Investment Review Committee. He previously worked as a venture capital analyst with MCN in 2021 while pursuing his MBA from Northwestern University’s Kellogg School of Management. Koziara currently works as a consultant at Boston Consulting Group. In this new role, he will work with other committee members to research prospective investment opportunities before bringing them to the membership for consideration.
“This is an exciting time for us as we welcome three tremendously talented business leaders to our organization,” said Diane Durance, executive vice president of MCN. “We are grateful to have Ashley and Troy leading two of our most active angel investing groups and pleased to have Michael’s passion and business acumen back with MCN. These new appointments will benefit our members and portfolio companies.”
Click here to learn more about Michigan Capital Network and its regional angel investing groups.
Business updates, investing seminars and networking highlight annual gathering
September 16, 2022
As Mike Blue stood on stage before a roomful of interested investors, he gave a quick assessment of the evening. “This is a spectacular event.”
Blue should know. As the CEO of HistoSonics, a tech startup company that is using high intensity acoustic energy pulses to eradicate many types of tumors without doing invasive surgery, he’s appeared at dozens of investor pitch events. On this night, he delivered the keynote address to more than 150 Michigan Capital Network (MCN) members and investors, updating them on the status of HistoSonics medical research, its business growth strategy and regulatory approval process. None of which he says would have been possible without the backing of venture capital funds and angel investors.
“They provide the fuel to execute on our plans and vision,” said Blue. “Without the support of investors, we couldn’t bring these life-extending procedures to the patients who need them.”
In addition to hearing the latest about HistoSonics, attendees also received brief updates from several portfolio companies supported through MCN’s four venture capital funds or its five regional angel groups. The presenting companies are breaking barriers and bringing new products and services to the marketplace in various industries including medical equipment, pharmaceuticals, healthcare services, agriculture, water quality, transportation safety, optics, wireless technology, software development and manufacturing.
“This is one of the most important functions our organization provides,” said Dale Grogan, MCN’s Managing Partner. “We serve as a connector between innovative inventors and interested investors. We conduct the necessary due diligence on startups so that we’re only sharing information with our members about companies that have met certain criteria and have a strong framework for success.”
The event attracted both investors and entrepreneurs from all around the state.
“I was really impressed with the CEOs who presented brief updates on their companies,” said Ryan Talbot, a member of Woodward Angels and the owner of Talbot Development in southeast Michigan. “This event was a great way to get real-time updates on our existing investments and learn more about other potential investor opportunities.”
Don Goeman, co-founder and CEO of Quint Workspaces, came from the western edge of the state. His Holland-based easy-to-assemble home-office furniture startup is in the early stages of operation. This event provided him an opportunity to network and learn from other innovative leaders.
“It’s wonderful to hear the stories of success from so many startup CEOs in the room tonight, said Goeman. “We feel blessed to have the financial support and intellectual insight of several investors including those with MCN. It’s clear by the discussions here tonight that there are many other entrepreneurs who can say the same thing.”
In addition to the many company updates, the event also included the announcement of a new Director of Grand Angels. Ashley Ward, a member of the regional angel group and the CEO of Hire for Hope, an executive recruiting firm.
For MCN CEO and Director, Paul D’Amato, this year’s annual member event provided an opportunity to learn about the opportunities in the future, while also celebrating the success of the past several years.
“When I joined the organization seven years ago, I set out to identify quality investment opportunities for our members – and I’m pleased to say that through the efforts of many talented people on our staff and at our portfolio companies, we have delivered on that pledge. Startup inventors, our investors, our local economies and the overall business ecosystem in Michigan have all benefitted. We should all feel a sense of pride about that.”
Despite a cooling capital markets environment, a Michigan venture capital firm is touting strong demand for its fourth fund. Grand Rapids-based Michigan Capital Network on Monday announced it has submitted filings with the U.S. Securities and Exchange Commission to increase the total investment amount of its Fund IV from $25 million to $35 million.
New alliance will accelerate business investment in Great Lakes Bay Region
Midland, Mich. (March 7, 2022) – Michigan Capital Network and Midland-based Bluewater Angels (BWA) investing group, announced today a new partnership with the Central Michigan University Research Corporation (CMURC). The purpose of this new alliance is to strengthen
the entrepreneurial ecosystem in the Great Lakes Bay Region, helping more business connect with prospective investors.
“The value of this new partnership is in the connection it will foster for startup businesses in the region and early stage investors,” said Leland Richards, director of BlueWater Angels. “CMURC has four business hubs that have a proven record of accelerating business growth. Our state’s economy and our investors will benefit from being more closely aligned with their organization.”
BlueWater Angels is one of five regional angel investing groups that make up the Michigan Capital Network (MCN) trade association. Combined, the association has over 160 active members with investments in nearly 100 companies, generating more than 2,000 jobs through those investments.
“We are fortunate to be able to join forces with BlueWater Angels and Michigan Capital Network as it aligns with our designated Michigan Economic Development Corporation strategic partnership for providing business guidance and helping companies with fundraising effort,” said Erin Strang, president and CEO of CMURC. “As a research-based business acceleration group, we strive to nurture entrepreneurs. When that happens, they will be able to garner the attention of prospective investors through this alliance.”
The agreement will establish a more collaborative and strategic method for connecting entrepreneurs and startup companies with angel investors through pitch nights and similar meet and greet events throughout the region. The first event will take place on March 9, 2022, at CMURC’s Midland coworking space. Those interested in learning more about this event may contact organizers at lee@michigancapitalnetwork.com.
“As the largest and most active angel investing association in the state, we are always looking to create new opportunities for business growth and investment,” said Paul D’Amato, CEO of Michigan Capital Network. “This new partnership with CMURC is a meaningful step in boosting new business development opportunities in the mid-Michigan region.”
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About Michigan Capital Network
Michigan Capital Network (MCN) is a non-profit trade association representing five regional angel investment groups – BlueWater Angels, Flint Angels, Woodward Angels, Ka-Zoo Angels and Grand Angels. MCN also has found dedicated venture capital funds which invest separately from the angel groups. Michigan angel investors specialize in supporting capital-efficient, early-stage enterprises in our state. The association is committed to utilizing its financial, intellectual and networking resources to help its portfolio companies grow and positively impact the Michigan economy.
About Central Michigan University Research Corporation
CMURC is a professional and diverse coworking space with accelerator programs focused on product and strategic development for entrepreneurs to positively impact the economy in the Great Lakes Bay Region. It brings together local, regional and statewide partners to accelerate the success of entrepreneurs, professionals, and corporations growing businesses and jobs by leveraging the resources of Central Michigan University, the Mount Pleasant SmartZone District and the Michigan Economic Development Corporation. CMURC is committed to inclusive entrepreneurship with the ultimate goal of closing the opportunity gap because people from all backgrounds deserve access to business and entrepreneurial resources.
The state’s largest association of regional angel investing groups named four new directors to its leadership team.
Grand Rapids-based Michigan Capital Network said Monday, Jan. 24, it made the following leadership appointments: Meg Eveland will take on the permanent role of director of the Grand Angels, based in Grand Rapids; Leland Richards will be permanent director of BlueWater Angels, based in the Midland/Bay City/Saginaw region; Lynn Bishop will take the helm at Woodward Angels in Detroit; and Mike Gerfen now is director of Ka-Zoo Angels in southwest Michigan.
Read the full article on the Grand Rapids Business Journal website.
Grand Rapids, Mich. (Jan. 24, 2022) – Michigan Capital Network (MCN), the state’s largest association of regional angel investing groups, announced today that it has named four new directors to its leadership team.
Meg Eveland will take on the permanent role of director of the Grand Angels, based in Grand Rapids. Likewise, Leland Richards has been named permanent director of BlueWater Angels, based in the Midland-Bay City-Saginaw region. In Detroit, Lynn Bishop will take the helm at Woodward Angels and Mike Gerfen is now the director of Ka-Zoo Angels in the southwest region of the state.
“We are extremely fortunate that these extraordinary individuals have chosen to step into leadership positions,” said Paul D’Amato, CEO of Michigan Capital Network. “Each brings a high level of professional experience and commitment to the organization, which will benefit our investors and the startup companies we support.”
Ms. Eveland takes over the director position at Grand Angels from Dale Grogan who now serves as a managing partner with MCN. Mr. Richards, an active investment member of the BlueWater Angels since September, 2018, now shifts into the director role previously held by BlueWater co-founder, Ken Kousky. Mr. Bishop has been a member of the Woodward Angels investing group since June, 2019 and has agreed to now fill the vacant role of director for that group. Mr. Gerfen will take the reins from long-time director Eli Thomsson at Ka-Zoo Angels, a position Mr. Thomsson held for more than four years.
“We want to thank Eli for his remarkable leadership with our Kalamazoo group,” said MCN Chair, Carl Erickson. “His vision and exceptional business instincts were instrumental in the success of that angel fund. We are confident all four new directors will work diligently to meet the high standards set by their predecessors.”
The new regional angel investing group directors were introduced during the trade association’s membership meeting earlier this month.
“These directors are actually volunteers who step forward from within the regional group to lend their leadership talents to their fellow angel investors,” said D’Amato, “For them, it’s about supporting Michigan entrepreneurs and building a stronger business climate in their community and throughout the state.”
Click here to learn more about Michigan Capital Network and its regional angel investing groups.
Amid resurgent investor interest and general tumult in traditional investment markets, angel investing groups around the state say they’re having success bringing new financiers into the fold.
Those running angel groups — which often provide the necessary back office support for cohorts of high-net-worth individuals to pool money and invest in emerging tech startups — tout the diminishing options for many as pandemic-induced challenges continue to throw a wrench into many investment theses. Moreover, some investors highlight the social aspect of angel investing.
Still, the interest ultimately boils down to fundamentals, and angel funds around the state are raising multi-million dollar rounds to invest in startup technology companies, many of which are growing right in their investors’ backyards.
With $65 million in assets under management and 170 members across five angel groups around the state, the 2022 outlook is bright, according to Dale Grogan, managing partner with the Grand Rapids-based Michigan Capital Network. The group manages operations for Grand Angels, Ka-Zoo Angels, Woodward Angels, Flint Angels and the Blue Water Angels.
If 2021 serves as an indicator, with $7 million in capital invested in 18 deals for MCN, Grogan said he’s bullish for at least the first half of 2022.
“There has been such pent-up energy for investing,” he said. “2019 and 2020 were stagnant. In 2021, it felt like the dam broke for sure.”
New capital abounds
Through September, investors had committed $2.7 billion to angel endeavors, according to a November report in the Wall Street Journal, citing data from Pitchbook.
For all of 2020, angel groups affiliated with the Angel Capital Association invested a total of $650 million, according to an annual report from the ACA trade group.
More locally, angel groups around the state are ramping up fundraising efforts, as well as working to bolster their membership.
Doron York and David Weaver, the CEO and chief investment officer, respectively, of Birmingham-based City Side Ventures, have recently launched the new $10 million Great Lakes Angel Fund, which is geared toward early-stage startup investing.
The nascent angel fund stands in addition to their active Birmingham Angels group, which has about 25 members.
Skip Simms
Additionally, the Ann Arbor-based Michigan Angel Fund is in the process of raising its fifth fund, according to Skip Simms, the fund’s managing partner. Simms said the key goal with fundraising efforts is more about bringing in new members rather than hitting a specific dollar amount.
“My No. 1 goal for the fund isn’t the amount or size of the fund,” Simms told Crain’s. “It’s the number of people participating in the fund. That’s what I want to do, and it’s in line with … getting more people in the asset class, and learning by doing.”
Michigan Angel Fund has raised upward of $10 million over its five funds, according to Simms.
Getting more high-net-worth people involved in angel investing stands as a key theme for many sources.
York with City Side Ventures, as well the Birmingham and Great Lakes angel funds, said getting that message across to would-be investors has gotten increasingly easier, particularly ongoing economic tumult during pandemic times. That’s because more traditional investments like the stock market or commercial real estate are increasingly volatile, according to York.
“So I think it’s more attractive to wealthy individuals right now, because there’s not too many alternatives,” he said.
The idea of diversifying beyond the stock market was appealing to Zeno Windley, a member of the Birmingham Angels investor group since late 2019 who has invested in around 15 companies. But the social aspect, and the opportunity to learn about new technologies and companies, is something that has “energized and “mentally stimulated” the 75-year-old investor, he told Crain’s.
“I was just looking for something rather than just continue to put money in the stock market,” Windley said. “I wanted something that would energize me some, plus offer an opportunity for some significant return.”
Lyle Wolberg, the CEO and senior financial life adviser at Southfield-based financial advisory firm Telemus Capital LLC, said he takes a “vintage” approach when it comes to advising clients on a variety of public and private market investments
“Just like stocks have a cycle, we think the private markets have a cycle as well,” Wolberg said. “So you allocate a percentage of money to private investments over three to five years. You might not find the one diamond, but at the same time, your chances (are greater) over five years.”
Dale Grogan
Like many others, Grogan with Michigan Capital Network said he’s anticipating some sort of slowdown in angel activity to occur at some point. Like most, though, he remains unsure when that will happen.
For now, however, conditions are ripe for investors like those who are part of the MCN to experience substantial returns.
“So long as the exit market is active — and it’s certainly (right now) frothy, feverish, record-setting, all of those adjectives,” Grogan said. “As long as that remains strong, that gives us confidence to invest.”
Angel vs. VC
Angel investing groups differ from venture capital investing in that angel investors — individuals or groups — provide their own resources to help fund startups or business expansions, usually investing less than $100,000 into the business. Venture capitalists invest in a new or growing business that has a realistic potential for high profits. A VC firm does not use its own funds, but rather capital culled from a variety of sources, including large corporations, wealthy investors, investment corporations or subsidiaries of investment banking firms, pension funds, insurance companies or other similar resources. Their investments are typically bigger than those of angel investors and are often measured in millions rather than thousands or hundreds of thousands. Source: SCORE
Angel funds in Michigan
Michigan Capital Network has $65 million in assets under management and 170 members across five angel groups around the state:
Much is made this time of year about the importance of buying local and the economic benefits that ripple through our state as a result of that. But little is said about investing local and its equally powerful impact — hopefully, that is about to change.
In a state where small businesses make up 98 percent of all commercial entities and employ more than half of the workers, it’s easy to see why pro-business legislation and investments by state leaders are smart. Michigan economic leaders estimate that for every $100 spent at a locally owned business, $68 are redistributed into the local economy. It’s a multiplier effect that powers our overall economy.
Facility Health Inc.’s sale to a North Carolina software solutions provider is another example of a startup company backed by local investors in West Michigan that led to a successful exit.
Grand Rapids-based Michigan Capital Network and Wakestream Ventures LLC were among the investors in Facility Health, which was acquired by Dude Solutions Inc. in Cary, N.C., a provider of operations management software.
