The 2021 Ann Arbor Entrepreneurial Ecosystem Report is a comprehensive analysis of the startup community in Washtenaw County. The region, which is consistently ranked among the best places in which to live and work in the country, has built a strong foundation of talent, research, and capital that supports nearly half of all startup companies in Michigan. This foundation is largely characterized by a collaborative community, and these meaningful connections have stabilized the economy during a remarkably difficult time. 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.
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Key Findings from the 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, Detroit Venture Partners, ID Ventures, Bank of Ann Arbor, Renaissance Venture Capital, Bamboo, Bodman, Endeavor, University Research Corridor, Jaffe Raitt Heuer & Weiss, Gener8tor, Michigan Economic Developers Association and Wagner Design. Thank you!

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