The West Michigan area - and definitely the city of Kalamazoo - have not been promoting new startup businesses in the same way you might see in Silicon Valley - for example - or even Detroit. What was the connection to having Patti Glaza of Invest Detroit as a guest, then, for the October 5th Startup Grind Kalamazoo event? Making that connection to better understand what someone in Patti’s position does as an investor and as a resource for the future.
The audience at the October 5th event was a good mix of entrepreneurs, students and the local community. Hosted by John Mueller, the duo dug into Patti's work and lifestyle in front of an engaged audience drawn into her investing strategy. Those of us who aren't investors, however, thought she wasn't just interesting, but ahead of the curve enough that it demanded we wrap our heads around it. It's innovative stuff - let's dive into it.
Breathing Life into the City - with Entrepreneurship
Patti is a venture investor for Invest Detroit. What that means is that she works with early stage technology startup companies through one of two funds:
First Step is a pre-seed early fund of $50k for the initial round and $100k for the second. As money comes in, it ends up reinvested. The primary interest is Southeast Michigan (Detroit area), Grand Rapids, and maybe Kalamazoo. The purpose is not just the funds, though. The benefit of having Patti as an investor is her expertise. Since these are longer term investments, Patti is also around to mentor the founding teams and help connect them to others with her vast business experience.
Detroit Innovate Fund is the second stage investment with funds that range from $750k to $2 million. These funds are specifically to help fund the gap in growth and provide returns to investors for 10 years. Due to the lack of venture funds in the state, the preferences are geographically neutral. One example in the West Michigan area is Varsity News Network, which was founded by Ryan Vaughn, who was also a previous guest of Startup Grind in Kalamazoo.
Getting Investment Right
When a company is seeking an investor, it is important that the motivations and experience match. Patti, for example, invests in technology. If it is a life science company, though, she might seek an advisory committee that includes someone like Jack Ahrens from T-Gap Ventures, who was also the first Startup Grind Kalamazoo guest, and that night's front row guest.
Learn more about Patti's experience, what's missing in Michigan startups, and her best tips for executing on your idea in the full interview here and keep track of upcoming Kalamazoo startup events on our page.