EntryPoint was excited to again partner with Michigan Venture Capital Association, the nonprofit trade association designed to increase the amount of capital and talent for Michigan’s entrepreneurial and investment community, to publish the 2020 MVCA Research Report. MVCA is a nonprofit trade association designed to increase the amount of capital and talent for Michigan’s entrepreneurial and investment community. The 30-page annual research report provides a comprehensive analysis of venture capital investment activity in Michigan.
According to our research, Michigan had a banner year in 2019 with 70 startups received more than $514 million in venture capital investment. This is a staggering 152% increase in the amount of venture capital invested in startups over the last five years.
EntryPoint also identified slight improvements in diversity among Michigan’s entrepreneurial community including an approximate 30x increase in the amount invested in Michigan’s minority-led startups over the last five years. Of the 144 venture-backed startups in Michigan, 22 were led by a CEO of an underrepresented group. These 22 companies raised $146 million in venture funding in 2019.
In total 542 venture capital firms from outside of Michigan have invested in Michigan-based startups.
While Michigan’s entrepreneurial ecosystem is positioned for continued success, the 2020 MVCA Research Report shows that an estimated $1.2 billion of additional venture capital is needed to support the growth of Michigan startups in the next two years. As we progress through an ongoing global crisis, maintaining our diverse economy and attracting capital to Michigan is important now more than ever.
At EntryPoint, we LOVE working with economic development organizations and nonprofits that are strategic, value listening to the needs of community members, and are passionate about building more opportunity and vibrancy in their communities.
Here’s what the entrepreneurial ecosystem had to say about this report!
“The annual research report has been a valuable resource for the Michigan investor community. Utilizing EntryPoint for creation of this report has continued their great reputation for gathering meaningful data and providing in depth analysis which ultimately is reflected in the final product. The latest findings highlight an all-around successful year within the Michigan ecosystem, proving the relevance and vitality that Michigan has when creating innovation and a strong entrepreneurial base. Especially during our current crisis, it is more important than ever to support the growth of these entrepreneurs as well as the investors that continue to take the risk to help make business a reality.”
–Ara Topouzian, Executive Director of the Michigan Venture Capital Association (client)
“Through consistently insightful research like the annual report they develop for the Michigan Venture Capital Association, EntryPoint has proven itself to be extremely helpful to foundations in understanding the landscape of a particular community. EntryPoint partners with organizations to deliver comprehensive research reports and to implement effective data-driven programs that promote entrepreneurship across the Midwest. Data is more than abstract numbers and graphs for community-focused organizations like the Kresge Foundation; these findings help to provide us with a comprehensive picture of our communities so that we can readily determine what actions we can take to strengthen our economies and change lives for the better. EntryPoint employs a holistic approach to researching entrepreneurship and investment that is key to developing impactful programs that address larger economic trends without losing sight of the community members themselves.” –Robert Manilla, Vice President & Chief Investment Officer of The Kresge Foundation
“At U-M Tech Transfer, we are constantly working to understand the funding climate for our startup companies. The MVCA Annual Research Report is our singular go-to resource for understanding the state of venture capital in our state. The production of a report of this size and depth is a major undertaking that requires a great deal of analytical aptitude, coordination, expertise and diligence. EntryPoint does exceptional job in managing this very complex task.”
–Kelly B. Sexton, Ph.D., Associate Vice President for Research Technology Transfer and Innovation Partnerships, Office of Technology Transfer, University of Michigan
“The MVCA Annual Research Report is the cornerstone for our ability to assess the entrepreneurial ecosystem in Michigan. The report is a fundamental piece of the Michigan Venture Capital Association that has helped us identify the needs of our investment community and develop programs that will grow the entrepreneurial ecosystem. The creation of the report showcases EntryPoint’s ability to work with multiple constituents with different goals and create a consistently high-quality, relevant report year after year.”
–Jeff Rinvelt, Chairman of the MVCA Research Committee and Principal of Renaissance Venture Capital
“EntryPoint’s approach is comprehensive and offers insights across the Michigan entrepreneurial community, including sources of capital, capital availability, startup demographics, sectors, stages of growth, resources, geographies, and consumer confidence. This report is a valuable resource for investors just getting to know Michigan and those who have been active there for years, alike. As an investor in the current times of both exciting economic opportunity and market volatility, we depend on maintaining a holistic understanding of the status of entrepreneurship in the Midwest to make decisions informed by the broad trends and opportunities in the region. This annual research report is one of the key data sources that serves us in this regard.”
—Guy Turner, Partner, Hyde Park Venture Partners
“The MVCA Annual Research Report provides critical insight into the health of Michigan’s entrepreneurial and venture capital ecosystem, and is an important tool to help guide the strategic planning of the Michigan Venture Capital Association. EntryPoint is a trusted partner to MVCA, and the Michigan venture capital community more broadly, in executing the preparation of the report and driving the deep underlying analytics that showcase venture capital activity in Michigan.”
–Michael Gross, Chairman of the MVCA Board of Directors and Managing Director of Beringea