Arboretum Ventures raises $140 million for venture capital investments, topping goal
Ann Arbor-based Arboretum Ventures raised $140 million for new venture capital investments, topping its goal and solidifying its reputation as one of the most influential investment firms in the Midwest.
Arboretum Ventures, led by managing directors Tim Petersen and Jan Garfinkle, raised $140 million for its new investment fund.
File photo | AnnArbor.com
The firm, led by managing directors Jan Garfinkle and Tim Petersen, had set a goal of $125 million for its latest fund. But Arboretum easily topped that target, positioning the firm to make bigger investments and increase its influence in the Midwestern VC industry.
“We are pleased to have exceeded our fundraising target for Arboretum III in what remains a challenging venture capital fundraising environment. We are gratified by the support of our returning investors, and welcome several new investors to Arboretum III,” Garfinkle said in a statement.
The news comes after several major wins for Arboretum, which reaped a windfall of profits from the 2008 sale of Ann Arbor-based startup HealthMedia to Johnson & Johnson, the 2009 sale of Pittsfield Township-based HandyLab to Becton, Dickinson and Co. for $275 million and the 2011 sale of Scio Township-based Accuri Cytometers to BD for $205 million.
Those wins gave Arboretum's own investors the confidence to reinvest in the venture capital fund, the firm indicated.
"These exits certainly boosted our fundraising efforts, allowing us to attract new institutional capital from across the U.S.," Petersen said in a statement.
Arboretum has also invested in several other local companies, including Ann Arbor-based Life Magnetics, Plymouth Township-based Esperion Therapeutics and Plymouth Township-based Delphinus Medical Technologies.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Turd Ferguson
Fri, Sep 9, 2011 : 2:10 a.m.
@dading, Is it built already? Freakishly Fast!
mrd
Thu, Sep 8, 2011 : 5:52 p.m.
News? Seems like advertising.
Dug Song
Thu, Sep 8, 2011 : 5:29 p.m.
Congrats Tim and Jan! We've seen a number of new healthcare IT startups crop up (in the RockHealth mold) with some folks returning to the area to do them (e.g. Jim Anderson, who had a HealthMedia-sized exit with his Applied Intelligent Systems here backed by Morganthaler, now doing Practical EHR), hanging out at Beer:30. Hope to see more early-stage activity in this space!
Townie
Thu, Sep 8, 2011 : 4:37 p.m.
So why do we need SPARK and their huge overhead that provides no jobs (except the phony ones they cite in their fiction numbers)? Laurel - you there ?
alternativeview99
Thu, Sep 8, 2011 : 3:35 p.m.
I think this is wonderful news and wish this firm all the best. But, I have to wonder why there is soooooo much capital available to fund these types of investments when so many people in Michigan are basically starving and losing their homes. This type of fund is probably NOT going to invest in businesses that put people back to work at wages that can support a family in dignity. My guess is that it will likely be devoted to proving out new technologies in health care that will then be sold to other companies to market. These other companies do not have to be in Michigan. In fact, I don't think they even have to be in the United States. Basically, what we now have in Michigan is more money in the hands of Venture Capitalists than they know what to do with. They jump on the chance to make these types of investments. This surplus of funds to invest exists while we tax the middle class into poverty to "balance" the budget. I guess I am having a difficult time understanding the concept of "fair share".
Mike D.
Fri, Sep 9, 2011 : 12:21 p.m.
Do you know what venture capital is? More often than not, it's money freed up from long-term securities investments to fund new companies so they can hire people and create things. The jobs created are high-paying, creative-class jobs. What, exactly, are you complaining about? Do you think all that money should be confiscated from investors and donated to GM so they can have more union manufacturing jobs? The entitled frame of reference you hear from people in Michigan explains a lot about our unemployment rate. Here's a clue: The manufacturing jobs are gone. Follow them to Mexico or learn to do something useful.
Original Ann Arborite
Thu, Sep 8, 2011 : 3:16 p.m.
Yes, please tell us how 2 offer ideas/business plans :-)
dading dont delete me bro
Thu, Sep 8, 2011 : 3:04 p.m.
mmmmm.....jimmy john's.... please hurry. can they build them freaky fast?!?
Hmm
Thu, Sep 8, 2011 : 2:21 p.m.
Would they be interested in investing in a new Jimmy John's franchise on the westside? Or does it have to be a new company?
Kai Petainen
Thu, Sep 8, 2011 : 1:54 p.m.
wow. that's fantastic. congratulations! the Ross School of Business was involved with the Handylab one too. "Ann Arbor VC firms Ardesta, EDF Ventures, Arboretum Ventures and the student-run Wolverine Venture Fund financed the company before outside investors came along." <a href="http://www.annarbor.com/business-review/ann-arbors-handylab-acquired-by-medical-technology-company/">http://www.annarbor.com/business-review/ann-arbors-handylab-acquired-by-medical-technology-company/</a> just a question in general that i've asked before... does anyone know how many VC firms we have in this area? there must be aggressive competition between firms for good deals?
Dug Song
Thu, Sep 8, 2011 : 5:36 p.m.
There's only a handful that are really active, some indigenous (Arboretum, RPM, North Coast, Resonant, Huron River, Plymouth Ventures, Beringea, Detroit Venture Partners, Ludlow, First Step, etc.), and maybe as many that have come in regionally (MK Capital, Early Stage Partners, Chrysalis, etc.). I'm not sure it's intentionally competitive, as much as siloed, when more of these groups ought to be syndicating (not that that's necessarily in the founders' interests, but), or at least referring deal flow. That's probably the next step, and will be a good sign of a healthy ecosystem.