EntryPoint, a nonprofit research institution in Ann Arbor, today released its 2021 Detroit Entrepreneurial Ecosystem Report, which details insights among startup companies across the region.
According to the report, more than 23 percent of the venture-backed startups in Michigan are located in Detroit. A key finding from this year’s report was the 38-total venture-backed startups in Wayne County, a 58 percent increase over the last seven years. Startup companies in the county raised an aggregate of $806.3 million, a 333 percent increase over the last seven years.
In the last year, 24 startups in Detroit raised $316.5 million from venture capital firms, nearly five times the amount raised the year prior. Ten of the startups are led by a CEO who is a person of color, and have raised 1.5 percent of the total amount raised in Michigan.
The cost of living in dense tech hubs like San Francisco is 88 percent higher than Detroit, making the region an attractive location for entrepreneurs who are looking for an energetic city to locate, live and launch their companies.
“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,” says Emily Heintz, founder and managing director of EntryPoint. “We hope that through comprehensive and ongoing research, we can do our part to support the community in its continued growth and progress.”
EntryPoint also hosted a free virtual discussion today, “Fostering Innovation and the Growth of Entrepreneurship,” featuring Patti Glaza of ID Ventures, Justin Mast of Bloomscape, Trina Scott of Rocket Cos., and Monica Wheat of Venture Catalysts.
The discussion explored 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.
To access the report, visit here.