Brian Hermelin
Dan Gilbert, Josh Linkner and Brian Hermelin founded Detroit Venture Partners five years ago. Those are some big names in the local investment landscape.
But Tom Henderson of Crain's Detroit Business reports that rumors have been circulating in the local venture-capital community that Detroit Venture Partners, which invests in early-stage technology companies, is in trouble.
Henderson reports that five years after being founded, the venture group has yet to score big. Crain's reports that there have been reports of layoffs at several portfolio companies, and some founders abandoning Detroit for the fertile grounds of San Francisco.
"Confidence in DVP by the venture community has been lacking," said one area venture capitalist who asked not to be named. "Rumors have been swirling."
Brian Hermelin, the group's managing partner, dismisses the rumors, saying things are fine.
"Early-stage investing is messy," he told Crain's. "It's hard. It's hand-to-hand combat. We're about where we should be four-and-a-half years in. We've got some really promising companies we like a lot. We've got some companies we hope can get some wind behind them. And we have some that are tough.We didn't get in this for a quick return. We're here for the long haul."
