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2019 MVCA Research Report Shows Record-Breaking Year of Investment in Michigan-Based Startup Companies

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61 Michigan-Based Startup Companies Received $385 Million in Venture Capital from Michigan Venture Capital Firms; $964 Million Needed for Continued Growth of Michigan Startup Companies

Ann Arbor, MI – April 15, 2019 – Michigan Venture Capital Association (MVCA),  the nonprofit trade association that increases the amount of capital and talent for Michigan’s entrepreneurial and investment community, today announced the release of the 2019 MVCA Research Report, a comprehensive analysis of investment activity in the state. The report showed Michigan had a record-breaking year in 2018 with 61 startups in the state receiving $385 million from Michigan venture capital firms; however, there is heightened demand for additional capital to support the growth of local startup companies. According to the report, an estimated $964 million of additional venture capital is needed to support the growth of Michigan startups in the next two years.

“To position Michigan at the forefront of innovation, we need high-growth, high-tech startup companies to build a robust economy in the state,” said MVCA Executive Director, Ara Topouzian. “We have the critical components to building a strong entrepreneurial and investment community – talent, research, capital and community – but as these companies reach their next stages of growth, we need additional capital to sustain it.”

Notably, the report found that total funds under management of university and economic development-related funds in Michigan in 2018 were $46.8 million, an increase of 19 percent from the prior year. Additionally, 84 startups raised over $52 million from angel investors.

“The MVCA Annual Research Report underscores the importance of university, economic development fund and angel investors in creating a strong investment pipeline that attracts and retains businesses in Michigan,” added Topouzian. “While this has been an incredible year of successes for Michigan’s entrepreneurial and investment community, we must ensure that we support entrepreneurs with the capital they need to hit critical milestones.”

Key Findings from the 2019 MVCA Research Report:

  • There are 140 venture-backed startups in Michigan, an increase of 37 percent over the last five years.
  • 61 Michigan-based startups received $385 million from Michigan venture capital firms.
  • There are currently 18 startup companies in Michigan led by a CEO who is a racial minority, a 125% increase over the last five years.
  • Every dollar invested by a Michigan startup by a Michigan venture capital firm attracts $7.85 of investment from outside of Michigan.
  • There are 27 venture capital firms headquartered or with an office in Michigan.
  • Total venture capital under management in Michigan is $3.7 billion.
  • 533 venture firms from outside of Michigan have invested in Michigan-based startups.
  • In Michigan, 84 startups raised over $52 million from angel investors.

View the 2019 MVCA Research Report for complete findings on Michigan’s entrepreneurial and investment community.

About Michigan Venture Capital Association

The Michigan Venture Capital Association (MVCA) is a nonprofit trade organization founded in 2002 to increase the amount of capital and talent available to venture and angel investors for the funding of Michigan’s most innovative entrepreneurs. The organization works closely with entrepreneurs to transform breakthrough ideas into new companies and industries that drive Michigan job creation and economic growth. MVCA membership includes private and corporate venture capital funds, angel investors, universities and economic development organizations, and service providers. More than 400 individuals are members of MVCA, representing over 100 organizations across the nation. For more information, visit

Media Contact:

  • Ara Topouzian
  • Executive Director, Michigan Venture Capital Association
  • o: 734-585-0324
  • e: [email protected]