Startup Genome’s 2022 Global Startup Ecosystem Report recognizes Detroit as the best emerging startup ecosystem, further highlighting Michigan’s role as a high-tech hub in the Midwest
Detroit is the world’s leading emerging startup ecosystem, according to Startup Genome’s recently released 2022 Global Startup Ecosystem Report (GSER) rankings. The GSER provides a comprehensive examination of the startup world, with data from over three million companies across more than 280 entrepreneurial innovation ecosystems.
Detroit’s first ranking marks a jump of 13 places from the previous year, reinforcing the city’s growth in seed funding and investor activity, the number of scale-ups and unicorns in the ecosystem, the commercialization of intellectual property and the ability to retain talent. According to the report, Detroit also ranked first in GSER’s list of top 10 ecosystems by ecosystem value at $90.6 billion, beating out national and global cities such as Kuala Lumpur, Hong Kong, Jakarta and Minneapolis. .
“This latest ranking from Startup Genome highlights Detroit’s tremendous growth as a destination for startups and venture capital investment,” said Fred Molnar, Senior Vice President of Entrepreneurship and Innovation at MEDC. “As Michigan’s economy continues to thrive, we will continue to work to provide the most dynamic environment for Michigan startups to find growth and success.”
Among GSER’s key local findings, Detroit scored 10/10 in performance, measuring the size and performance of an ecosystem based on accumulated tech startup value created from exits and funding; Market Reach, measuring scale-ups and unicorns in the ecosystem, local reach size and commercialization of intellectual property; and Talent and Experience, measuring long-term trends on the most significant performance drivers and the ability to generate and retain talent in the ecosystem. Detroit also scored 8/10 in funding, measuring innovation through seed funding and investor activity.
This news builds on Detroit’s status as an attractive location for entrepreneurs, from its affordable cost of living compared to other dense tech hubs to Michigan’s overall growth in venture capital investment. In a May 2021 Crunchbase article, Michigan was recognized as the fastest growing state for venture capital investments, with venture capital dollars rising from $300 million in 2016 to 3 .1 billion in 2020.
According to the Michigan Venture Capital Association’s 2021 Annual Research Report, there are currently 165 venture capital-backed startups in Michigan, an increase of 17% over the past five years. Additionally, the report found that every dollar invested in a Michigan startup by a Michigan-based venture capital firm attracts $9.70 of investment from outside Michigan.
Michigan also has the distinction of being among the few states to have more than one resident unicorn company. Since 2018, five Michigan start-ups — Duo Security, Llamasoft, Onestream Software, Rivian Automotive and StockX — have become unicorns, thanks to the state’s diverse ecosystem with expansive resources supporting new business.
Seed funding also remains critical to the success of start-ups and entrepreneurs. Through a number of strategic partnerships, Michigan is able to help startups secure the seed funding necessary to successfully reach the point where venture capital and angel investors begin to step in. – administered by the Michigan State University Foundation through Michigan Rise – to grants through the Michigan Mobility Funding Platform, startups and entrepreneurs have a variety of options to access the capital they need early on to drive success and growth in Michigan.
To learn more about the programs and services MEDC can provide for startups and small businesses in Michigan, visit michiganbusiness.org/partnership.
To learn more about the state’s high-tech ecosystem and how it creates an environment in which startups and businesses of all sizes can grow and thrive, visit michiganbusiness.org/tech.
About the Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and primary advocate for business development, employment awareness, and community development, with a focus on growing Michigan’s economy. For more information about the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® travel information, your journey begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.