2021 Ann Arbor Entrepreneurial Ecosystem Report Reveals Record-Breaking Year of Venture Capital Investment in Startup Companies
43 Startup Companies in Washtenaw County Attracted More Than $215 Million from Venture Capital Firms
ANN ARBOR, Mich. – August 16, 2021 – EntryPoint, a nonprofit research institution that delivers comprehensive research insights and implements effective data-driven programs to promote entrepreneurship across the Midwest, today announced the release of its 2021 Ann Arbor Entrepreneurial Ecosystem Report. The report provides Ann Arbor economic development organizations and nonprofits with the insights necessary to serve the startups in the community and help founders navigate challenges that arise when growing their companies. The findings from the report revealed a record-breaking year of venture capital investment in startup companies, with 43 startup companies in Washtenaw County attracting more than $215 million from venture capital firms.
“Ann Arbor’s density of talent, research, capital and community greatly contribute to the region’s ability to build a strong and resilient high-tech entrepreneurial ecosystem,” said EntryPoint Founder and Managing Director, Emily Heintz. “Startups such as Censys, Mi Padrino and SkySpecs successfully navigated the challenges of the past year while attracting record-breaking amounts of venture capital investment, paving the way for continued growth and success.”
Key Findings from the 2021 Ann Arbor Entrepreneurial Ecosystem Report
- 69 active venture-backed startup companies in Washtenaw County have raised over $1 billion in venture capital funding.
- In the last year, 43 startup companies in the Ann Arbor area attracted more than $215 million from venture capital firms, a record for the region.
- 46% of the startup companies in Michigan are located in the Ann Arbor area.
- There are 69 venture-backed startups in Washtenaw County, a 64% increase in the number of startup companies over the last seven years.
The Impact of COVID-19 on the Small Business Community in Washtenaw County
The 2021 Ann Arbor Entrepreneurial Ecosystem Report features an analysis of the overall impact of COVID-19 on the small business community in Washtenaw County. The analysis includes 500 local businesses, including startup companies, with less than 25 employees. The findings from the analysis show:
- 48% of businesses in Washtenaw County are currently hiring.
- 66% of business owners say the best way for residents to support small businesses in the region is to spread the word about companies they like.
- 49% of business owners in Washtenaw County say the best way for policymakers and economic development organizations to support companies is to provide marketing support.
Support for EntryPoint’s 2021 Entrepreneurial Ecosystem Reports was provided by Rocket Community Fund, Michigan Economic Development Corporation, Bank of Ann Arbor, Detroit Venture Partners, ID Ventures, Bodman, and other prominent community organizations.
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.
EntryPoint is a registered 501(c)(3).