Grand Rapids Reporter

The Michigan startup ecosystem has greatly benefited from venture capital and the ongoing leadership provided by successful entrepreneurs, as the state and region have made significant strides in attracting those investment dollars.

Jeff Sloan, CEO and founder of StartUpNation, recently discussed the important role venture capital financing has played in the growth of startups in Michigan during WJR's Business Beat, a portion of "The Paul W. Smith Show."

"The availability of that capital has led to a richer ecosystem of startups launching in our region," Sloan told Smith. 

Jeff Sloan, Founder/Managing Partner of StartupNation | LinkedIn

Washtenaw County, which includes Ann Arbor, has been a particular focus of startup activity, with a 31% increase in venture-backed startups within the last six years, Sloan said. The county currently has 55 active, venture-backed startups.

A report by EntryPoint called "Ann Arbor Entrepreneurial Ecosystem Report" was recently released. EntryPoint is a nonprofit research institute of self-described "data geeks" focused on gathering data and designing programs to encourage entrepreneurial ventures in the Midwest, according to its website.

Sloan quoted EntryPoint founder and managing director Emily Heintz, who said that Ann Arbor has a history of successful startups that go on to make continuing investments in the region.

"Ann Arbor now claims 38% of the total venture-backed companies in the state of Michigan, and the 55 active venture-backed startups in the county have raised nearly $1 billion in venture capital funding," Sloan said on the radio program.

Of those, 53% operate in the information technology sector, and 36% operate in the life science and health care sectors, Sloan said.

"The Ann Arbor startup ecosystem underscores the importance of creating a culture of entrepreneurship, supporting local startups with critical early-stage funding, and then having the successful founders of the startups that 'make it' foster further growth of the ecosystem with their own investment dollars, matched by their leadership, to fuel the local startup culture," Sloan said on the radio program.