Venture capital investment in Michigan is reported to stick to its downward performance in the first quarter, highlighting the presence of tough financing scenario for fledgling companies in the state.

It is revealed that 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 is showed to mark a 26.3% fall from the $27.8 million that went into 12 companies in the first quarter of 2009.

Of the $20.5 million divulged in Michigan, $11 million went to Ann Arbor-based HistoSonics, a University of Michigan spin-off company that's in process of designing a medical device that uses ultrasound pulses to treat prostate disease.

"With health care reform passed and an improving exit market, we are expecting venture investment to increase moderately throughout the rest of 2010," NVCA President Mark Heesen posted.

While, the remaining $2.5 million is reported to go to two other companies -- Intervention Insights, a Grand Rapids medical information company, and an undisclosed firm.