Venture capital investment in Michigan continued its downward slide in the first quarter, reflecting the tough financing environment for fledgling companies in the state.

Venture capital firms invested $20.5 million in four companies in Michigan during the first three months of the year, according to the MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association. That's down 26.3% from the $27.8 million that went into 12 companies in the first quarter of 2009. Low financing bucks U.S. trend
Michigan's venture capital performance was the worst since the fourth quarter of 2007. The decline in venture dollars and deals came even as venture activity rose nationwide.
Of the $20.5 million invested in Michigan, $11 million went to Ann Arbor-based HistoSonics, a University of Michigan spin-off company that's developing a medical device that uses ultrasound pulses to treat prostate disease.
Another Ann Arbor start-up, Sakti3, received $7 million. It's working on next-generation lithium-ion batteries. The remaining $2.5 million went to two other companies -- Intervention Insights, a Grand Rapids medical information company, and an undisclosed firm.
(Source: Detroit Free Press)