Detroit has proven itself to be a powerful force in tech development and innovation. Due to its combination of connections to research institutions, strong sense of community and culture, talent density, and relatively low costs of living, Detroit is uniquely positioned to be a center of development and success. The past year has, no doubt, been filled with obstacles for many, and people within Detroit’s entrepreneurial ecosystem have been given no exception. Between drastic changes in how we live and work, social turbulence, and political uncertainty, we have faced consistent and significant challenges. However, a hallmark characteristic of Detroit is its steadfastness, and its tech economy — its businesses, startups, workers, investors, and leaders — have all exemplified that trait.
Download the 2021 Detroit Entrepreneurial Ecosystem Report
*click here for the mobile device version*
Key Findings from the Report:
- Over 23% of the venture-backed startups in Michigan are located in City of Detroit.
- There are 38 venture-backed startups in Wayne County, a 58% increase in the number of startup companies over the last seven years.
- Startup companies in Wayne County have raised an aggregate of $806.3 million in venture capital funding, a 333% increase in total capital raised over the last seven years.
- In the last year, 24 startup companies in the Detroit area attracted more than $316.5 million from venture capital firms, nearly five times the amount of capital raised in the year prior.
- Ten venture-backed startups headquartered in the City of Detroit are led by a CEO who is a person of color. These companies have raised 1.5% of the total venture capital raised by startups in the city in the last year.
- The cost of living in dense tech hubs, like San Francisco, is 88% higher than Detroit, making the region an attractive location for entrepreneurs who are looking for an energetic, vibrant city to locate, live and launch their companies.
Watch the discussion: Fostering Innovation and the Growth of Entrepreneurship
Patti Glaza (ID Ventures), Justin Mast (Bloomscape), Trina Scott (Rocket Companies), and Monica Wheat (Venture Catalysts) for a discussion on fostering innovation and the growth of entrepreneurship in Detroit. The discussion, hosted by EntryPoint, will explore ways the community can better nurture startups (through policy, programs and culture shift), preserving diversity and strategies for building a more inclusive entrepreneurial ecosystem, the impact of COVID-19, significant events that have shaped the Detroit region and advice for people thinking about starting their own companies.
This conversation stems from EntryPoint’s 2021 Detroit Entrepreneurial Ecosystem Report.
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!
For More Information:
- Read recent research on the Midwest entrepreneurial ecosystem
- Check out this database of Detroit-area Black-owned businesses!
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).
I am the EIC of a digital publication called Flyover Future that covers innovations and startups in the middle of the country. I would love to talk to someone at your organization about what you do and what you think things might look like in a few years.