If you ask a founder what’s standing between them and their next milestone, chances are the answer is capital. For early-stage startups, especially those in tech, the need for funding can feel urgent. These companies are often pre-revenue and are pouring resources into research and development, hiring their first key team members, and trying to figure out product-market fit — all without a steady stream of income.
Angel investing fills a critical gap that venture capital typically doesn’t touch. At Ann Arbor SPARK, and through the Michigan Angel Fund, we’re working to close that gap and help Michigan’s next generation of high-growth companies take root — and stay right here.
What is Angel Investing, and Why Does it Matter?
Angel investing is a form of early-stage capital provided by high-net-worth individuals — often people who’ve had success in business themselves and want to support the next wave of entrepreneurs and innovation. These investors typically contribute anywhere from $5,000 to $25,000 per investment, and in most cases, they're not just bringing money: they're bringing experience, their networks, and a belief in the company and region's potential.
Capital from an angel investor is especially critical at the earliest stages, when startups are too young for venture funding. Venture capital investors often want to see $1 million or more in revenue before they’ll even take a meeting. Angel investors step in long before that — when a product is still being developed, or a team is just getting off the ground.
Without angel investments, many promising startups simply wouldn’t get to the next stage.
When to Seek Angel Funding vs. Venture Capital
Timing matters. If you're a founder, one of the most important things you can do is understand where you are on your journey and what kind of funding fits best.
Angel funding tends to make sense when:
- You’ve formed a company
- You’re building a scalable tech product
- You’ve started validating your market
-
You need capital to accelerate toward product-market fit
Venture capital usually comes later — once you’ve gained real traction and revenue to show for it.
We always advise founders to make sure they’re ready before raising any kind of capital. Once you take on investors, you’re committing to a certain path. That can be powerful, but only if you’ve laid the right foundation.
How SPARK and the Michigan Angel Fund Support Startups
At SPARK, we take a multi-pronged approach to supporting Michigan startups:
- Entrepreneurial Bootcamp: A cohort-based program to help early founders assess and grow their ideas
- Business Accelerator Grants: Non-dilutive capital to help with incorporation, IP, marketing, and more
- Consultant Network: A bench of experts in industries from legal to go-to-market
And on the funding side, we manage two investment arms:
- SPARK Capital (state-funded evergreen fund)
- Michigan Angel Fund (“MAF”), an angel group with over 160 members that invests through a fund model (currently investing out of MAF V)
Also, we will soon be accepting additional angel members through our new SPARK Michigan Angels (stay tuned for more information). Our goal is to put as much early-stage capital as possible into Michigan startups — and create more opportunities for local angels to participate.
Real-world Impact: Genomenon and SkySpecs
Some of our favorite success stories started small.
- Genomenon is a leader in AI-powered genomic data, helping doctors make better decisions with better data. They raised tens of millions and have grown to 150 employees.
- SkySpecs, based in Ann Arbor, uses autonomous drones and AI to inspect wind turbines. They raised over $100 million and have grown to 300 employees.
Both companies began with angel investment, including funding from the Michigan Angel Fund, and are now the market leaders in their respective fields. They’re proof that when you invest early, you help create Michigan’s next growth success story.
Why Michigan Needs a Strong Angel Network
A strong angel community does more than fund companies — it helps fuel the local economy and contributes to a broader network of support. Angel investors often become mentors, advisors, and connectors. And for startups, that can be just as valuable as the capital.
Kauffman Foundation studies consistently show that nearly all net new jobs in the U.S. are created by companies under five years old. That means the startups being funded today are creating job opportunities for the next generation. If we want to grow Michigan’s economy, we need to support our entrepreneurs — and that starts with angels.
Angel investing can be high-risk, high-reward. It’s not for everyone, but if you’ve built wealth, love new ideas, and want to give back to your local economy, it could be a meaningful way to get involved.
You’ll need to be an accredited investor (as defined by the SEC), and we always recommend thinking of it as a long-term, portfolio-based investment strategy. But the upside? You get to be part of something bigger. You're helping build companies, jobs, and industries of the future — right here in Michigan.
.png?width=50&name=Erin%20Gregory%20(1).png)