The Michigan Venture Capital Association (MVCA), a non-profit representing more than 400 individuals and 100 businesses, today released its 10th annual research report, which reflects on the state of Michigan’s venture capital community in 2016. The report indicates that venture firms are critical to the success of Michigan’s entrepreneurial community, with venture capital funds invested in nearly every Michigan startup that raised venture capital in the past year.
According to the report, there were 141 active venture-backed startups in Michigan during the past year, a 48 percent increase in the last five years. Additionally, 54 startups statewide received more than $222 million form Michigan venture capital firms during 2016, a 42 percent increase in the last five years. Total venture capital under management throughout Michigan totaled $4 billion, a 34 percent increase since 2012, but a 24 percent decrease since 2015.
This year, MVCA expanded their report to include mobility as a sector of focus, and 6 percent of all investments made by Michigan venture capital firms were in mobility startups.
“The data in the 2017 MVCA Research Report proves that the health of the state’s entrepreneurial economy hinges on our industry’s ability to provide capital to the state’s high-growth, high-potential companies,” says Maureen Miller Brosnan, executive director of MVCA. “Fifteen years after the founding of the Michigan Venture Capital Association, we’ve never been prouder to represent the 33 venture firms in Michigan, all of whom are willing to take chances on tomorrow’s big ideas today.”
Brosnan adds that while the report indicates positive aspects of Michigan’s entrepreneurial market, there are signs the market is refining.
“Venture capital investors are ensuring there is a robust capital continuum for Michigan’s entrepreneurs and their growing businesses,” she adds. “The ability to adequately fund companies at all stages of growth is critical to growing companies in Michigan, keeping them in Michigan, and securing Michigan’s economic health in the long run.”
The organization will host the 2017 MVCA Research Report Release at NextEnergy in Detroit on April 19. The report can be read in full here.