The Wolverine State is not normally a powerhouse for venture capital, unlike the top-ranked Golden State of California.
But things are lousy in Michigan, and not just because the Detroit Lions haven’t won a game since 2007. VC investments in the state plunged in the first quarter about 70% from the same quarter a year ago, according this month’s MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association based on Thomson Reuters data.
In Michigan in Q1, 10 venture capital deals occurred in the first quarter, the same number as in the year-ago period. However, the total dollars invested fell from $28.2 million to $8.4 million.
However, a VC in New York hopes to do something about it. His name is Tom Groos. Groos is a partner in NY-based City Light Capital, which invests in companies that provide social benefits, such as ShotSpotter Inc., the Mountain View, Calif.-based company that provides gunshot locater technology to a few dozen cities nationwide.
Groos tells West Michigan Business News that he visits Michigan about once a month. He says that he hopes to find some deals in Michigan that meets the firm’s criteria, where any kind of investment activity would be welcome news. Here’s the full story.