Starting a new business usually requires some type of start-up capital. However, many entrepreneurs do not have the necessary finances to jump start their own business ideas. Fortunately, for aspiring entrepreneurs in Michigan, the state has seen a dramatic rise in venture capital investors who are attracted to the entrepreneurial environment the state has to offer. This means many entrepreneurs will be able to complete their plans for business formation .
A recently released report reveals that 47 business deals involving venture capital were closed in 2012, for a total of approximately $242 million in capital investments. Also venture capital firms located in Michigan increased the amount of capital under their management by approximately $800 million during this same time period. Michigan climbed from 25th to 15th in the nation for total invested venture capital among all the states in the U.S.
Investors are attracted to people who have already been through the business start-up process. Venture capital investors are finding many of these people within the Michigan entrepreneur community. These experienced entrepreneurs are also serving as inspiration and mentors for younger up-and-coming entrepreneurs who are going into business for themselves during or right after college.
Along with start-up capital, aspiring Michigan entrepreneurs will also need a good business plan in place in order to be successful after the initial business formation. The business plan should take into consideration all of the rules and regulations specific to the particular industry the new company plans to operate within. This may help the business avoid future legal complications for non-compliance, which may ultimately prevent the businesses chance at success.
Source: annarbor.com, " Top 5: Reasons Michigan's venture capital and startup growth will continue ," Ben Freed, May 21, 2013