North Coast Technology Investors start off year with big exit

One of Ann Arbor's venture capital staples officially scored a big exit early this year, and chances are you haven't heard about it.

NTT Communications, a Tokyo-based multinational corporation, acquired Denver-based Virtela Technology Services for $525 million. The deal was finalized in January, and Ann Arbor-based North Coast Technology Investors was one of the early investors in Virtela Technology Services.

"These don't happen everyday," says Hugo Braun, partner with North Coast Technology Investors. "We're pretty excited about it."

The 15-year-old venture capital firm is currently in the midst of deploying its third investment fund worth $30 million. North Coast Technology Investors' team of three people have made nine investments from the fund and recorded two exits. The other exit was Ford's acquisition of Ferndale-based Livio last fall.

"We're still in investment mode," Braun says. "We have half of our money left in our fund. Some of it is committed to other investments but we think we will make a few more this year."

One of its most recent investments is in VNN, formerly Varsity News Network, which recently raised a $3 million Series A round. The Grand Rapids-based startup is pushing forward a collaborative effort between traditional and community sports journalists to provide media coverage for every high school sport. It took first place and $500,000 in seed capital in last fall’s Accelerate Michigan Innovation Competition.

Source: Hugo Braun, partner with North Coast Technology Investors
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.