Entrepreneurs should keep an eye on Michigan, as it's a bit of a bullet in terms of venture capital growth. In fact, Area Development named it No. 14 in their 2022 list of Top States for Doing Business.
VC firms in the state are eager to capitalize on the buzz, which can make it easier for promising small business owners to launch a successful startup. VC firms are largely concentrated in Ann Arbor (where the University of Michigan is located), but the Metro Detroit region as a whole can prove to be a boon for entrepreneurs.
Below, we take a look at some of the VC firms that make Michigan such a great place for startups.
We also recommend checking out our main list of the top venture capital firms.
Best Venture Capital Firms in Michigan
The companies below are funding some of the most innovative and disruptive startups in Michigan. They're also the firms that entrepreneurs should keep their eye on if they're looking for investments.
Keep reading to learn what industries they invest in, some of the more notable companies they've funded, and more.
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1. Arboretum Ventures
- Location: Ann Arbor
- Industries: Pharma, Life Sciences, Tech-Enabled Care Delivery
- Stage: Series A, Series B
- Notable Portfolio Companies: ConcertoCare, Boomerang, Convergent Dental
Arboretum Ventures is committed to spearheading technology in healthcare. The team looks for companies that can improve patient experience and lower healthcare costs overall.
The team is full of healthcare experts who are as transparent as they are approachable. They have a track record of helping their portfolio companies manage the stress and uncertainty that early-stage growth can bring.
2. Beringea
- Location: Farmington Hills
- Industries: Consumer Goods, Communications, Technology
- Stage: Series A, Growth, or Later
- Notable Portfolio Companies: Papier, Moonshot, Genomenon
Beringea is a departure from many of the tech-centric VC firms in Michigan. From stationary to furniture to life sciences, they have a well-rounded portfolio.
This would be a great fit for an entrepreneur who has a wealth of experience under their belt and a readily available market. Beringea is steadfast about reviewing the numbers, so finances and operational metrics are a must.
3. RPM Ventures
- Location: Ann Arbor
- Industries: Mobility, Enterprise Software, Insurance
- Stage: Series A (May Consider Seed or Series B)
- Notable Portfolio Companies: BountyJobs, Convey, Daily Pay
RPM Ventures looks for tech-enabled companies in the mobility, automotive, enterprise software, financial services, insurance, and real estate sectors. The team of investors focuses on relationships, so they have the best chance of influencing companies to become successful.
About 75% of their deals are Series A, but they will consider either Seed or Series B (particularly if they already know the leadership team). They look for companies that are trendsetters in their fields — ideally, companies that will inspire their competitors to shift their metrics as well.
4. Plymouth Growth
- Location: Ann Arbor
- Industries: SaaS, Information Technology, Software
- Stage: Growth
- Notable Portfolio Companies: Nutshell, Able, 365 Retail Markets
Plymouth Growth primarily invests in startups that provide B2B software and technology services and are based in the Midwest and central United States. The venture capital firm prefers to support startups that have at least $3 million in capital plus revenues with high growth potential. Clearly identifiable growth catalysts help to encourage Plymouth Growth’s financial support.
Plymouth Growth is among the more promising Michigan venture capital firms for minority-owned companies whose owners have active roles on their respective boards of directors. Flexible growth equity helps to identify viable investment opportunities for the firm. They use a hands-on and collaborative approach to help ensure success.
5. Ludlow Ventures
- Location: Detroit
- Industries: Software, Ecommerce, SaaS
- Stage: Pre-Seed, Seed, Early Stage
- Notable Portfolio Companies: Diagram, Trustpage, Scout
Ludlow Ventures is one of the more hands-on venture capital firms in Michigan and often provides pre-seed, seed money, and financial support through the early stages of development for promising startups.
Owners Jonathon Triest and Brett deMarrais prefer a friendly relationship that grows trust and leads to success when determining which startups to support. Ludlow Ventures acts more like a founding member and hustles to help foster success in addition to providing financial support.
6. eLab Ventures
- Location: Ann Arbor
- Industries: Software, Artificial Intelligence, Information Technology
- Stage: Pre-Seed, Seed, Series A, Series B
- Notable Portfolio Companies: Clinc, Blue Medora, Verge Aero
eLab Ventures is one of the best VC firms in Michigan for startups in software, information technology, and artificial intelligence. The firm primarily supports startups that are poised to provide impactful technology businesses and become global tech leaders. It offers pre-seed and seed venture capital for startups as well as Series A and Series B support.
eLab has offices in both Ann Arbor and Silicon Valley and is committed to reducing inequity that exists within the communities in which it does business. Its emphasis on equity makes eLab Ventures one of the top VC firms in Michigan for women- and minority-owned and operated tech startups.
7. Grand Ventures
- Location: Grand Rapids
- Industries: B2B SaaS
- Stage: Convertible Note, Seed, Series A, Series B
- Notable Portfolio Companies: iink Payments, CRE Simple, Terminal49
Grand Ventures specializes in providing venture capital for companies that create and deliver B2B SaaS technological solutions. Grand Ventures launched its fund in 2017 and is one of the best venture capital firms for supporting entrepreneurs with diverse backgrounds.
In addition to providing capital, Grand Ventures also provides support and guidance to their portfolio companies. They work closely with founders to help them build their businesses, providing mentorship, access to resources, and connections to potential customers and partners.
8. Annox Capital
- Location: Birmingham
- Industries: Healthcare, Internet, Marketplace
- Stage: Early Stage, Late Stage
- Notable Portfolio Companies: ClassPass, Gusto, Handshake
Annox Capital prefers to invest in disruptive technologies and online strategies that improve business processes. It is one of the top venture capital firms in Michigan for tech companies whose business models focus on healthcare, the marketplace, and the internet. Annox Capital seeks investments of up to $1 million for startups, up to $5 million for later-stage ventures, and up to $30 million for significant-control private equity.
The venture capital firm has a strong desire to support businesses that develop new approaches in mature markets, including manufacturing, logistics, and banking. Annox Capital is one of the nation’s best venture capital firms for innovative entrepreneurs who generally improve standardized markets with innovative technologies and processes.
9. Red Cedar Ventures
- Location: East Lansing
- Industries: Agricultural Technology, Life Science, Manufacturing & Materials
- Stage: Pre-Seed, Seed, Series A, Series B, Venture, Convertible Note, Post-IPO Equity, Grant
- Notable Portfolio Companies: Nickels, Titan Bioplastics, KindKatch
Red Cedar Ventures is part of the MSU Research Foundation at Michigan State University and controls four venture capital funds totaling $19 million in capital. Two pre-seed funds support startups with initial funding to get underway. Two opportunity funds help existing businesses to minimize risk while growing their respective markets.
Red Cedar Ventures aims to be the leading venture capital firm in the central Michigan area. Its partnerships with other organizations make it one of the best Michigan VC firms for startups that are looking for initial investors. The firm has more than 500 active co-investors with more than $880 million in combined funds.
10. BioStar Capital
- Location: Petoskey
- Industries: Medical Technologies, Manufacturing
- Stage: Early Stage, Late Stage, Venture, Debt Financing, Post-IPO Equity
- Notable Portfolio Companies: Amplitude Vascular Systems, Trice Medical, Ellipse Technologies
BioStar Capital is one of the best Michigan venture capital firms for healthcare-focused businesses that specialize in cardiovascular and orthopedic healthcare delivery. BioStar Capital seeks investments in businesses that create innovative technologies, including robotics, devices, and diagnostic tools that advance the delivery of healthcare services.
BioStar uses a medical venture partner model that includes doctors as investors and fund partners. The VC firm’s broad connections in the healthcare industry enable it to make research sites active and positively impact the nation’s healthcare systems.
11. General Motors Ventures
- Location: Warren
- Industries: Advanced Materials, Automotive, Energy
- Stage: Early, Late, Venture, Convertible Note, Debt Financing, Private Equity
- Notable Portfolio Companies: MycoWorks, Nanoramic Laboratories, Wind Catching Systems
General Motors (GM) Ventures is one of the leading VC firms for the automotive industry and supports new businesses that can help to support GM’s goal of producing the next generation of vehicles. GM invests in businesses that produce innovative technologies that align with the automaker’s goal of building vehicles that produce zero emissions, prevent accidents, and lessen roadway congestion.
GM Ventures invests in high-potential startups and implements their technologies whenever possible. The combination of startup support and including their products in GM vehicles and manufacturing processes help to make GM Ventures one of the best venture capital firms in Michigan for startups in the automotive industry.
12. Michigan Capital Network
- Location: Grand Rapids
- Industries: Life Sciences, Advanced Manufacturing, Software, Tech
- Stage: Early Stage
- Notable Portfolio Companies: Elevate K-12, HealthBridge
The Michigan Capital Network (MCN) is one of the most active Michigan VC firms, with more than 95 investments totaling more than $60 million. Some 81% of MCN’s investments are based in Michigan, and five partner angel groups provide even more capital support.
MCN places a high emphasis on life sciences that help people to live healthier, happier, and more productive lives. The VC firm also supports agriculture, advanced manufacturing, and many other types of enterprises. Michigan Capital Network provides investment funding for early- and late-stage ventures alike.
13. Detroit Venture Partners
- Location: Detroit
- Industries: Tech, Financial Services, Market
- Stage: Pre-Seed, Seed, Early Stage, Venture
- Notable Portfolio Companies: Trustpage, Flex, Digital Onboarding
Detroit Venture Partners was formed in 2010 to support entrepreneurial efforts in the Greater Detroit area. Rocket Companies founder and chairman Dan Gilbert created Detroit Venture Partners and leverages the more than 90 companies that comprise the Rock Family to help ensure successful support of the businesses in which Detroit Venture Partners invests.
Overall, Detroit Venture Partners is a key player in the Midwest's venture capital scene, and its efforts to support and grow the startup ecosystem in Detroit have helped to establish the city as a hub for innovation and entrepreneurship.
14. Michigan Rise
- Location: East Lansing
- Industries: Software, Healthcare, Technology
- Stage: Pre-Seed, Seed, Early Stage, Venture, Convertible Note, Debt Financing
- Notable Portfolio Companies: Shoptelligence, CubeWorks, Nickels
Michigan Rise is a venture capital entity that enables the Michigan State University Research Foundation to administer its Pre-Seed Fund III program. Michigan Rise is wholly owned by the MSU Research Foundation, with support coming from the Michigan Economic Development Corporation.
Michigan Rise supports for-profit LLC, C corps, and S-corp entities that were founded less than seven years ago. A majority of their employees must be Michigan residents, and the entities must match any economic support provided through Michigan Rise.
Michigan Rise supports qualifying businesses with between $50,000 and $150,000 per request and totaling no more than $250,000. Financial support is available as convertible debt, equity, and SAFE securities.
15. Fontinalis Partners
- Location: Detroit
- Industries: Software, Mobility Tech, Artificial Intelligence
- Stage: Early Stage, Late Stage, Private Equity, Seed
- Notable Portfolio Companies: Lyft, Chain.io, Carputty
Fontinalis Partners has offices in Detroit and Boston and primarily funds entrepreneurial ventures that improve movement systems. Current investments include entities that provide transportation, are developing autonomous vehicles, and move freight. The venture capital firm also supports weather- and climate-adaptation technologies.
Fontinalis Partners is one of the best venture capital firms for companies that develop industrial robotics and metal-additive manufacturing technologies. They prefer to support startups that need between $250,000 and $5 million in capital but also look for opportunities to support companies that are in their later business stages.
16. Augment Ventures
- Location: Ann Arbor
- Industries: Software, SaaS, Supply Chain Management
- Stage: Early Stage, IPO
- Notable Portfolio Companies: Guardhat Technologies, Crowdz, Perennial
Augment Ventures provides seed money for enterprises that use data and digitization to revolutionize traditional industries. Augment Ventures ranks among the top VC firms for fledgling companies that produce disruptive technology to improve people’s lives and make doing business more efficient. It takes an active role in helping the companies that it supports to succeed.
Augment Ventures looks for companies that have diverse management teams, mold-breaking technologies, and clear advantages over their competitors. Transformational companies with equally transformational technologies are especially desired. Data automation, sustainability, and modernization are key factors in earning support from Augment Ventures.
17. Banana Capital
- Location: Ann Arbor
- Industries: Ecommerce, Mobile Apps, Healthcare
- Stage: Pre-Seed to Pre-IPO
- Notable Portfolio Companies: Canvas, CreditBook, Peanut
Banana Capital supports businesses that have sustainable advantages over the competition with products that define their market categories. Banana Capital is one of the top venture capital firms for supporting companies from early development until they are well-prepared for initial public offerings. It especially supports promising revenue prospects with the potential to create large and lucrative markets.
When Banana Capital identifies a good candidate, it moves quickly to provide capital support. Initial pre-seed and seed funding varies from $250,000 to $750,000. As supported entities grow, they allocate up to $10 million in total funding.
18. ID Ventures
- Location: Detroit
- Industries: Adtech Marketing, Life Science, Software
- Stage: Pre-Seed, Seed, Early Stage, Venture, Convertible Note, Grant
- Notable Portfolio Companies: Shoptelligence, Onboard, Hush
Invest Detroit assists companies in the Greater Detroit area through its ID Ventures entity. ID Ventures is one of the best venture capital firms for entrepreneurs in the Motor City and surrounding communities. It also funds startups throughout Michigan.
ID Ventures has invested more than $28 million in more than 200 companies since 2009. More than half of ID Ventures; investments support companies with diverse founders. The venture capital firm is especially helpful for companies that advance life sciences and B2B software. ID Ventures has leveraged more than $3 billion in additional investments.
