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Michigan Midwest Startup Report (MVCA)

Laura Cowan

By Laura Cowan

Laura K. Cowan is a tech editor and journalist whose work has focused on promoting sustainability initiatives for automotive, green tech, and conscious living media outlets.

MVCA Research Report 2021, Michigan venture capital report 2021

The 2021 MVCA Research Report has just been released, with more details available than our recent interview with Executive Director Ara Topouzian. The 2021 MVCA Research Report shows that 88 Michigan startups received more than $257 million in venture capital investment in 2020. The report estimates that an additional $1.2 billion of venture capital will be required to adequately fund the growth of Michigan’s 165 startup companies in the next two years.


Highlights of the 2021 Michigan Venture Capital Association Research Report:

  • There are 165 venture-backed startups in Michigan, an increase of 17 percent over the last five years.
  • Total venture capital funds under management of firms headquartered in Michigan in 2020 was $2.8 billion, an increase of 28 percent over the last five years.
  • Total venture capital under management in Michigan is $3.7 billion, a decrease of 31 percent over the last five years.
  • 15 percent of Michigan venture-backed startups were led by a CEO who is a person of color, compared to 7.4 percent of CEOs of Fortune 500 companies nationally.
  • Every dollar invested by a Michigan startup by a Michigan venture capital firm attracts $9.70 of investment from outside of Michigan.
  • In Michigan, 102 startups raised over $49.5 million from angel investors in 2020.

What we take from this report is that despite enormous challenges brought on by the COVID-19 pandemic, an anticipated rise in the number of startups founded in Michigan continues, but that total venture capital in the state is significantly down. The good news? Many of those new startups found venture backing from an increasingly diverse ecosystem of funds, and the state is attracting more out-of-state interest.

MVCA, Michigan venture capital statistics, 2020 Michigan VC report, Ara Topouzian, Michigan Venture Capital Association

“Last year created a challenging environment for the investment and entrepreneurial community. Crisis and setbacks are familiar territories for startups, but the true test of their fortitude is evident in this year’s MVCA Research Report,” said Ara Topouzian, Executive Director of Michigan Venture Capital Association.

"The Michigan venture capital community demonstrated resilience and strength to support companies that faced unprecedented challenges in 2020, while also providing growth capital to companies poised to thrive in the accelerated digital economy," said Michael Gross, MVCA Chairperson and managing director of Beringea. "As we look to a post-pandemic future, MVCA members can lead a new chapter of economic expansion in Michigan, building on the deep heritage of innovation in our great state."

If you would like to read the full MVCA 2021 report, you can download it here.

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