Top Vc Firms In Michigan Who Fund Software Startups
Michigan’s software industry has been on a roll for the past 5 years. In 2021, the state’s software sector made $8.4 billion in revenue, creating over 77,000 jobs.
Employment in Michigan’s IT sector has grown by 25% since 2009, outpacing the overall employment growth in the state. Software developers, in particular, are expected to see a growth rate of22.8%through 2030.
This burgeoning ecosystem has made Michigan a hub for tech innovation. Many international VC firms have started to invest in the state, producing over 5 software unicorns in the last 6 years.
Do you also have a startup idea that needs funding to become the next software giant?
Let’smove to the list of Michigan’s top investors who invest in the software sector.
Table of content
- Find out The Top 7 VC Firms in Michigan Who Fund Software Startups
- ID Ventures
- Beringea
- Fontinalis Partners
- Ludlow Ventures
- Rockbridge Growth Equity
- Detroit Venture Partners
- Colfax Creek Capital
- Wrap-Up:
Find out The Top 7 VC Firms in Michigan Who Fund Software Startups
ID Ventures
- Contact : info@investdetroit.com
- Website :
- Focused Sectors : Software development, Website design, Mobile app development, Digital marketing, Graphic design, Virtual assistance, Renewable energy, Energy efficiency, Electric vehicles, Blockchain technology, Cryptocurrency, Insurtech, Regtech
- Funding Stages : Early and Seed
- Present in : Michigan
- Notable Investments : Autobooks, Genomenon, May Mobility, Workit Health, and ToDoolie
- Total Investments : 215
ID Ventures is a prominent early-stage venture capital firm based in Detroit, Michigan. It was founded in 2010 as part of Invest Detroit, a larger nonprofit organization focused on economic development.
Ever since, the network has funded over 200 startups across many sectors. The firm has a strong track record of successful exits, with more than 40 exits to date, showcasing its ability to identify and nurture high-potential companies.
The investment criteria for ID Ventures include a focus on early-stage companies, particularly those in the technology, life sciences, and advanced manufacturing sectors.
ID Ventures usually invests in seed and Series A rounds, with an initial check size ranging from $50,000 to $500,000.
Beringea
- Contact : info@beringea.com
- Website : Home | Beringea
- Focused Sectors : Advanced Manufacturing, CleanTech, Consumer, Healthcare, Media, Retail, SaaS
- Funding Stages : Early and Seed
- Present in : Michigan
- Notable Investments : InContext Solutions, Thread, AccessPay, My1stYears, and Watchfinder
- Total Investments: 197
Beringea is a leading international venture capital firm with a strong presence in both the United States and the United Kingdom. The firm was founded in 1988 by William Blake.
As a VC firm, Beringea focuses on providing growth capital to high-potential software startups and helping them scale internationally. Over the past 2 decades, Beringea has funded more than 190 startups, with most investments at the seed stage.
Likewise, Beringea’s Detriot investor team focuses on funding businesses that are dealing in markets with large addressable sizes and experienced founders. The average check size can range between $2 million to $10 million.
Fontinalis Partners
- Contact: info@fontinalis.com
- Website:Fontinalis | Home
- Focused Sectors: connected vehicles, logistics, smart cities, and Mobility-as-a-Service
- Funding Stages: Early and Seed
- Present in: Michigan
- Notable Investments: Humatics, Inrix, Karamba Security, Highland, Life360, Lyft, nuTonomy, Ouster, Postmates, and FreightWaves
- Total Investments : 119
Fontinalis Partners, co-founded by Bill Ford in 2009, focuses on the future of mobility.
Ever since its inception, Fontinalis Partners has funded over 100 startups. The founders usually focus on transformative startups that are modernizing the logistics sector through innovative software ideas.
The investment range of Fontinalis Partners lies between $300,000 to $10M.
Ludlow Ventures
- Contact: hello@ludlowventures.com
- Website: Ludlow Ventures
- Focused Sectors: Sector Agnostic
- Funding Stages: Seed
- Present in: Michigan
- Notable Investments: Honey, Flex, Tally, Product Hunt, Boulevard, Lob, Lev, Catalyst, Signal Advisors, AngelList, and May Mobility
- Total Investments:105
Ludlow Ventures is a Detroit-based venture capital firm known for its unique, founder-focused approach to investing. It was founded in 2010 by Jonathon Triest and has invested in over 150 startups.
When funding businesses, Ludlow Ventures focuses on startups that have innovative ideas and are led by ambitious entrepreneurs.
Investors prefer to invest in startups that can at least generate 6x ROI within the first 2 years of funding and are dealing with TAM of $ 50 M to $ 500 M. To date, the VC firm has had around 20 successful exits and funds around 5–10 startups every year.
The investment range of Ludlow Ventures lies between $500,000 to $1M.
Rockbridge Growth Equity
- Contact: info@rockbridgegrowth.com
- Website: Rockbridge Growth Equity — Detroit-based Private Equity Firm (rbequity.com)
- Focused Sectors: Business services, consumer services, financial services, media & Marketing services, internet & software, sports and entertainment sectors
- Funding Stages: Seed
- Present in: Michigan
- Notable Investments: Rapid Finance, Connect America, White Glove, and Purchasing Power
- Total Investments: 75
Funding startups since 2007, Rockbridge Growth Equity is a private equity firm based in Detroit. The firm was founded by Dan Gilbert.
The firm has invested in dozens of software startups and usually invests in the early stages. The investors focus ongrowth-stage companies that have established business models and are poised for significant expansion. Rockbridge Growth also backs startups with strong management teams, differentiated products or services, and the potential to generate 10–15x ROI within the next 6 years of investment.
The investment range of Rockbridge Growth Equity can range up to $100M.
Detroit Venture Partners
- Contact: info@detroitventurepartners.com
- Website: Home | DVP (detroit.vc)
- Focused Sectors: Software, Semiconductor manufacturing, Hardware development, Robotics, Artificial intelligence, Internet of Things, Cybersecurity, Cloud computing, Big data analytics, Virtual reality, Augmented reality
- Funding Stages: Seed
- Present in: Michigan
- Notable Investments: Benzinga, Ginkgotree, Chalkfly, and Floyd
- Total Investments: 75
Detroit Venture Partners (DVP), founded by Dan Gilbert and team in 2010, is dedicated to supporting technology startups that can reshape industries.
When investing in startups, The firm seeks out passionate entrepreneurs with bold ideas that have the potential to disrupt industries and create massive value for consumers in the B2C sector. DVP is particularly interested in companies that are based within the state and can easily generate 3–5x ROI.
Since its founding, DVP has funded over 20 startups in the software sector. The average check size of the VC firm is around $500,000.
Colfax Creek Capital
- Contact: info@colfaxcreek.com
- Focused Sectors: Consumer Products
- Funding Stages: Seed Stage
- Present in: Michigan and Birmingham
- Notable Investments: TCP, Premier Engineered Products, Midwest Innovative Products, Fluence Automation
- Total Investments: 10+
Colfax Creek Capital is a private investment firm based in Birmingham, Michigan, focused on lower middle-market companies. The firm was founded in 2015 by Jason Winsten, an experienced investor with a background in private equity and investment banking.
Since its founding, Colfax Creek has invested in more than a dozen companies, primarily targeting those in the industrial, manufacturing, business services, and consumer products sectors.
The firm prefers to work with companies that have a strong market position, proven management teams, and a track record of stable cash flows.
The firm’s investment criteria are focused on companies with revenues typically between $10 million and $100 million and EBITDA ranging from $2 million to $10 million.
The average check size of Colfax Creek Capital is around $5M.
Wrap-Up:
Wrapping up, we’ve explored many VC Firms who are making a significant impact in the Michigan startup ecosystem. Every VC firm offers unique opportunities for founders but with the right pitch.
If you’re preparing to pitch, we always recommend preparing an investor-specific presentation. Highlight your traction, show a clear growth path, and be prepared to answer tough questions.
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Earlier the article was published here.
