That’s up from $41.9 million in 2017 when the Michigan Angel Community started its annual report.

The 2019 Annual Research Report from the Michigan Angel Community is out. The report showed that angel investing in the high-tech sector in 2019 was in fine fettle. Both the number of angel investors and the amount they invested during the year grew impressively in percentage terms.

Michigan angel activity, 2019

The number of angel investors grew by 54% in 2019 from 859 to 1322. The amount invested rose 41% from $52.1 million to $73.7 million.

“Our inaugural report discovered 797 angels in Michigan, who invested $41.9 million in startups here,” said Skip Simms, Michigan Angel Fund managing director and senior vice president of Ann Arbor Spark, the economic development agency for Livingston and Washtenaw counties. “This past year, that number swelled to 1,322 angels who invested $73.6 million. This activity is a testament to the quality of businesses originating here and the support they receive to nurture their long-term growth.”

Sector Focus

Michigan angels invested $12.7 million in 11 advanced materials and manufacturing companies, $6.4 million in seven consumer product companies, and $3.3 million in six mobility companies.

Key report metrics at a glance

• Number of jobs at investee companies totaled 958
• 106 companies received angel funding
• 23 of those companies were owned by women
• 24 of those companies were owned by minorities
• The median amount of angel dollars was $50K per angel
• 51 companies in the IT sector received angel funding
• IT also led with 343 jobs
• However, in terms of dollars invested, companies in the Life Sciences led with $29.6 million
• Life science companies provided 289 jobs
• In terms of funding, convertible notes accounted for 45%, common stock 29%, preferred stock 19%, and SAFE Notes 7%.

The report does not include angel investment in traditional, non-tech businesses such as real estate, retail, professional services, and restaurants.

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