TOCK
15. nal nts cal Acotal paies
869 No. o. 3
C R A I N ’ S D E T R O I T B U S I N E S S // A P R I L 2 9 , 2 0 1 9
11
SPECIAL REPORT: FINANCE
2018 venture-capital investments by state 2018 United States venture capital deals by state and territory Capital Invested ($Millions)
Company Count
# of Deals Closed
California
2869
3063
77,297.63
New York
981
1050
14,311.79
Massachusetts
624
660
11,885.72
Washington
337
366
2,957.47
Texas
398
427
2,686.69
North Carolina
173
185
2,620.56
Illinois
239
253
1,798.38
Florida
212
234
1,735.20
Colorado
258
283
1,635.91
Pennsylvania
250
267
1,496.75
State/Territory
Maryland
131
142
1,375.32
Utah
101
106
1,165.25
Georgia
112
120
1,147.33
Ohio
141
148
1,026.23
Minnesota
117
121
786.47
Virginia
135
145
742.70
New Jersey
83
86
732.01
Connecticut
87
89
683.12
District of Columbia
59
62
676.15
Arizona
81
89
538.95
Oregon
98
100
527.90
104
111
502.48
Indiana
88
93
367.74
Missouri
65
69
311.27
Wisconsin
74
78
254.27
Tennessee
74
79
223.39
Kansas
20
21
164.18
Delaware
47
48
144.72
Nevada
36
38
131.61
New Hampshire
27
32
127.61
Michigan
South Carolina
37
39
91.50
Kentucky
36
38
86.47
New Mexico
16
19
85.34
Iowa
27
34
84.99
Rhode Island
23
23
56.78
Oklahoma
12
12
52.69
Arkansas
28
28
46.49
Idaho
25
26
45.36
Montana
12
12
44.58
Vermont
22
24
36.57
Alabama
21
22
30.73
Maine
22
24
28.06
Nebraska
18
19
26.85
North Dakota
7
7
22.23
South Dakota
3
3
21.48
New venture capital firm to focus on health care IT By Tom Henderson thenderson@crain.com
Jonathan Goldstein, the former director of entrepreneurial services at Ann Arbor Spark, the economic development nonprofit, has launched a new venture capital firm, Narrow Gauge Venture Syndicate LLC, which will focus on early stage health care IT companies. Goldstein says the firm, based in downtown Ann Arbor, will generally target companies needing to raise between $1 million and $3 million, with initial investments of $100,000 to $500,000. He said he hopes to have a first close this summer on what he hopes will be a fund of $7 million to $10 million. “Part of the reason I took the job at Spark was to see what the needs and the opportunities were,” said Goldstein, who was at Spark for nearly two years before leaving in February to focus full-time on Narrow Gauge. “There’s a real gap for companies between the angel-investor stage and the venture-capital stage. If you are raising $1 million to $3 million, it’s just too small for traditional venture capital to look at. I’m bridging that gap between seed funding and Series A funding. “This is a true micro-VC. We’ll be doing smaller deals in companies that eventually can have an exit of $50 million instead of bigger companies doing exits of $200 million.”
He said he has already invested in his first portfolio company, Redwood City, Calif.-based Naked Labs Inc., which makes 3-D body scanners for home use that give Goldstein readouts on body fat and other health and fitness metrics. “We’ll be agnostic about where companies are based, but we’ll have a focus on Michigan,” he said. “I’m in due diligence on four more companies, a couple of them local companies.” Goldstein was an intern in 2006 at Ann Arbor-based Plymouth Management Co., a venture-capital firm founded by Ian Bund, the dean of the state’s venture capitalists. In 2013, Bund was honored with a lifetime achievement award by Crain’s. “I’ve always considered Jonathan quite a talent,” said Bund, who is Plymouth’s chairman. “He’s paid his dues, and he has a natural talent for marketing. He’s also got very strong people skills. When people meet Jonathan, he’s able to bring quite a bit to the table.” Of what is regarded in venture circles as a gap in funding for those early stage companies that have
got some seed funding but aren’t able to get the attention of larger VC firms, Bund said: “His approach to early stage venture capital is going to be a great addition locally. The need in that space continues to grow. Sources available for that have increased nicely recently, with what Skip Simms has been doing with the Michigan Angels and with the Grand Angels expanding, but there is still a large gap between demand and supply. “But it’s not just a matter of writing checks. It’s doing homework and due diligence to sort out which companies to back, and that’s not easy.” “In the middle part of the country, it is often more difficult to raise the first $1 million of start-up capital than it is to raise $10 million after a company has had some level of success,” said Chris Rizik, CEO of the Ann Arbor-based Renaissance Venture Capital Fund. “This is still true in Michigan, even as venture investing overall here has dramatically increased. We’ve had a number of good funds formed in the past few years to address this issue, but we continue to have a shortage of early stage capital. So a new fund like Narrow Gauge is welcome, and will likely find plenty of opportunity here.” Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2
We’ve got the right formula for commerical banking.
Louisiana
9
9
18.47
nies
Hawaii
6
6
13.89
side om-
Wyoming
5
5
12.12
At Chemical Bank we understand that numbers matter. That’s why we have 212 banking centers and over 100 years of service. Whether you need greater lending power or more efficient banking solutions, let us sum it up for you. To learn more visit ChemicalBank.com.
Mississippi
6
6
9.60
Contact Jim Robinson, Southeast Michigan Regional President, at 248.244.2866 for more information.
getmpasci-
West Virginia
2
2
7.75
Alaska
3
3
3.73
Puerto Rico
3
3
2.96
$52 s in 218 ago, 2.
Virgin Islands
0
0
-
Other US Territory
0
0
-
E 14
Source: National Venture Capital Association
Member FDIC