Venture Capital Fixated on West Michigan in Q3
Monday, October 10, 2016
Posted by: Kate Oesterle
Four of the top five investments by venture capital firms in the state went to West Michigan companies in the third quarter.
Among them was a $4 million investment by an unnamed angel investor in Hickory Corners-based Hop Head Farms LLC, located 22 miles northeast of Kalamazoo. The investment in the 200-acre hop farm closed Aug. 23, according to a quarterly report on VC activity published by the National Venture Capital Association and Pitchbook.com.
Hop Head Farms, which is owned by South Bend, Ind.-based Ceres Partners LLC, plans to use the investment to expand by 300 acres over three years, according to a report by the Boston Business Journal.
Among the clients that Hop Head Farms lists on its website are Founders Brewing Co. in Grand Rapids and Kalamazoo-based Bell’s Brewery Inc., the two largest breweries in the state.
Other notable VC deals involving West Michigan companies in the third quarter were:
• Vestaron Corp., a Kalamazoo-based developer of a bio-pesticide based on spider venom that closed in August on an $18 million Series D investment. The company will use the investment to build a distribution and sales channel directly to ornamental and vegetable greenhouses.
• Nearly $7.5 million in Series B funding for Grand Rapids software development firm Blue Medora LLC.
• $5 million for Tetra Discovery Partners LLC in Grand Rapids to support the ongoing clinical trials for a new drug to treat Alzheimer’s disease.
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