Ann Arbor fund continues investment in Michigan companies despite national downturn in venture activity

While some outside venture capital firms are willing to invest in Michigan, it is harder to find “home-grown” firms willing to write bigger checks for middle-stage health care startups, according to a story in Crain’s Detroit Business.

Tangent Medical Technologies CEO Jeff Williams told Crain’s that companies he’s worked with have been reliant on east and west coast funds to augment investments made by local firm Arboretum Ventures. Founded by managing director Jan Garfinkel in 2002, the fund has 20 startups in its portfolio, having sold five companies and taken one public.

Despite a consolidation trend that has plagued the venture capital industry nation-wide, Arboretum has continued to expand during the past five years. About half of the firm’s $140 million fund closed in 2011 came from investors within the state of Michigan, including an investment from the Michigan Economic Development Corporation’s Venture Michigan Fund.

• Read the full story from Crain’s Detroit Business.

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2