U.S.-based angel network and venture group Grand Angels announced the launch of Grand Angels Venture Fund III (GA Fund III), a $25 million venture capital fund dedicated to backing emerging companies developing advanced food and agtech technologies, manufacturing and materials, life sciences, and software.
Begun in 2004, Grand Angels has grown to become Michigan’s legacy angel venture resource. Together with its network of over 50 members, Grand Angels has invested in 40 startups, and had either led or participated in more than 100 funding rounds.
From its headquarters in Grand Rapids, Michigan, Grand Angels Venture Fund I invested in 17 Michigan-based companies, eventually exiting from eight, with nine remaining active. The group’s second fund, Grand Angels Venture Fund II, was launched three years ago and has since invested in 14 companies; having exited from two and having 12 still active. By the end of this year, Fund II is expected to make a possible two additional investments, as well as select follow-on funding for certain existing portfolio companies, reported MiBiz.
Building upon the group’s two prior funds (GA Fund I and GA Fund II), GA Fund III is expected to make four or five new investments per year, ranging from $250,000 to $500,000 across primarily Seed, Series A, or Series B funding rounds.
With funding for GA Fund III expected to begin in September, existing investors and angel group members will be the first to be approached, however, outside institutional investors will also be contacted to participate.
Geographically the funds largely center on Michigan-based ventures, though the group has not closed the door on considering investment opportunities that are out-of-state, with the goal of drawing tech developers into the region.
“Grand Angels has been building business in Michigan for 14 years, and Fund III is created to profitably attract more emerging technologies that can take advantage of Michigan’s legacy in advanced manufacturing and materials,” said Paul D’Amato, GA Fund III managing director and Grand Angels member.
Self-described as being “Michigan-focused and regionally opportunistic”, the group identifies startups that can capitalize on and leverage both Michigan’s strengths, and the resources that the Grand Angels offers.
Michigan’s economic strength, maturing startup system, as well as the Angel network connections among the state’s universities and colleges that have a strong history of patent origination, are all channels to which portfolio companies of GA Fund III will gain access.
“Paired with the deep and rapidly growing Grand Angels network, we can work closely with our portfolio companies, and connect them with the mentors and talent they need to scale, mature or bring them to exit faster and more efficiently,” said D’Amato.
-Lynda Kiernan