Business Incubator Series: An Interview With Skip Simms, President And CEO, Ann Arbor SPARK — Ann Arbor, Michigan (Part 6)

By guest authors Irina Patterson and Candice Arnold

Irina: How many investments has your pre-seed fund made in the past 12 months?

Skip: In the past 12 months, we’ve made 12 investments. In the life of the fund, we’ve made 52 investments.

Irina: How long has the fund been in existence?

Skip: We’re in our fifth year.

Irina: How many portfolio companies does the fund currently have?

Skip: We are at 43.

Irina: Were they incubated by you?

Skip: Some. Some are elsewhere around the state. A lot of the companies we’ve invested in were in Kalamazoo, a couple in Grand Rapids, a few in the Detroit area. We invested in a company in Flint, a couple of companies in Midland – all around the state. Yes, there have been a couple from our incubator.

We’ve already had five companies exit and return. They’ve sold or they had some kind of an event where they paid us back with a nice return.

Irina: What’s the average investment amount?

Skip: $230,000.

Irina: How much equity do you usually seek?

Skip: Well, it depends. Because we’re a coinvestment, we don’t negotiate terms. We go alongside whatever terms the company negotiated with the other investor. Sometimes we’re buying stock. Quite often, we’re buying a convertible note.

Irina: How do you usually exit?

Skip: They’ll sell to another business. Another business acquires them.

Irina: Would you tell us a little bit about your personal background?

Skip: I was in television for many, many years. I managed local television stations in Michigan and elsewhere around the country. Then I got into venture capital for six years. SPARK was created in 2005, and I started in 2006.

Irina: Thank you, Skip. I enjoyed talking with you and learning about Ann Arbor SPARK.

This segment is part 6 in the series : Business Incubator Series: An Interview With Skip Simms, President And CEO, Ann Arbor SPARK — Ann Arbor, Michigan
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