Findings Show 333% Increase in Capital Attracted by Tech Community
ANN ARBOR, Mich. – EMBARGOED UNTIL June 21, 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 Detroit Entrepreneurial Ecosystem Report. The report provides Wayne County 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. EntryPoint will also “Fostering Innovation and the Growth of Entrepreneurship,” a free virtual discussion, open to the public based on the findings from the report on June 21 at 10:30 a.m. EST.
“Detroit’s entrepreneurial ecosystem has seen incredible growth over the last seven years; however, our research shows the challenges facing the region, such as racial inequality and the global pandemic, hit the community hard this past year,” said EntryPoint Founder and Managing Director, Emily Heintz. “We hope that through comprehensive and ongoing research, we can do our part to support the community in its continued growth and progress.”
Key Findings from the 2021 Detroit Entrepreneurial Ecosystem 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!