The University of Michigan's Wolverine Venture Fund has struck again, this time making an investment in a California-based company.

The VC fund, run by MBA students at the University of Michigan, has invested in Direct Flow Medical, an emerging medical device company developing a catheter-based, percutaneous-delivered prosthetic aortic valve. This investment is part of Direct Flow Medical's Series C financing, which has raised $40 million from the likes of EDF Ventures, New Leaf Venture Partners and Spray Venture Partners.

The Wolverine Venture Fund is part of the University of Michigan's Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies in the Ross Business School. The fund is worth $3.5 million and has invested in more than 18 companies in industries like information technology, life sciences and alternative energy. These firms typically have some sort of U-M connection.

"That's how we get our deal flow," says Erik Gordon, clinical professor and associate director of the University of Michigan's Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies. "The University of Michigan is one of the most connected places."

Source: Erik Gordon, clinical professor and associate director of the University of Michigan's Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies
Writer: Jon Zemke