Terry Cross from Windward Associates, Panel Facilitator
On November 17, 2010 – I attended Michigan Emerging, a conference in Dearborn, MI a featured event for Global Entrepreneurship Week that focused on exciting and growing industries in Michigan. I took away tips on marketing, new information about cool startup programs, and as described in this post, accessing funding for startups.
I originally took these notes for my other half, who is considering investment for his high school sports media venture, Varsity News Network, but in the spirit of the holidays I thought I would share it with my network, as well!
Accessing Capital Session – Michigan Emerging
Mike Flanagan from MEDC, Ryan Waddington from Huron River Ventures and Jody Vanderwel from The Grand Angels
Panel:
Mike Flanagan- Michigan Economic Development Corporation
Ryan Waddington - Huron River Ventures
Jody Vanderwel - The Grand Angels
Mahendra Ramsinghani - First Step Fund
The questions answered below have to do with what type of investments they make, what the investment process is like/how long is it, where to contact them, what they like to see in a business plan and how they prefer to invest.
MEDC:
• Pre-seed Fund
• Accelterate MI
Huron River Ventures:
• Equity Investments for very early stage companies.
• Contact them through their website.
• Rolling application process- no deadlines
• Need to at least see an executive summary
• Shorter Plan is better
• Milestones are important (they use a scorecard)
• Funding process is weeks to a month and then several months to close
• Equity is 10-40% depending on how large the group is that they are investing with.
Grand Angels:
Ryan Wagginton, Jody Vanderwel and Mahendra Ramsinghani
• $250-750K, typical investment
• Early stage companies with beta and some revenue
• Can be contacted by their website (application is there)
• Process: Application-→Due Dilligence →Financial Projections →Presentation
• 30-45% IRR
• They use milestones
• Quarterly reporting from entrepreneur, narrative on financials
• 2 investors sit on companies board (there to help them succeed)
• 4 to 6 months funding time
• 5 to 10 year exit
• Less than 50% equity
The First Step Fund:
• $50K typical amount
• Desired prototype with some revenue
• Apply through investdetroit.com, techtown or Ann Arbor Spark
• Milestones are used
• 60 to 90 days for funding
• A few % for equity
I hope you found this information helpful for your startup or for friends with startups. Photos on this page are courtesy of Bobby Alcott Photography – thank you! Let me know if you need clarification on any of the above. Comment or email me at laura.n.pecherski@gmail.com.
