Bank of Ann Arbor is aiming to take a central role in early stage equity financing in Ann Arbor. It helped found Ann Arbor Angel Investors to create a forum for potential angel investments. It offers two products to venture capital firms to help them better leverage their investment capital.
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When Michael Cole started The Technology Industry Group at Bank of Ann Arbor six years ago, he realized there might be a big opportunity in formalizing the bank's relationship with local area angel investors and venture capitalists. The bank was already informally connecting these investors with opportunities among its customers.
Angels and venture capitalists require different products and services. Angel investors typically make early stage equity investments in companies totaling less than one million dollars. Venture capitalists make larger equity investments in companies they feel have a high likelihood in delivering large, outsized returns.
- For angel investors, Bank of Ann Arbor became a founding member in Ann Arbor Angels, a group that meets to discuss potential investments.
- For venture capitalists, Bank of Ann Arbor has recently launched two products:
- Capital Call Lines of Credit: Venture capitalists typically get commitments up front from their investors and then make calls for new portions of the commitment as they make investments. The capital call line of credit allows VCs to make investments in between calls.
- Venture Debt Financing: This is debt financing secured by a venture's assets and is typically made at the same time as a round of VC funding.
Additional Links:
- Ann Arbor Spark provides a listing of Angels and VCs in Ann Arbor.
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