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2022 MVCA Research Report Reinforces Michigan is not a flyover state for venture capital activity

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2023 MVCA Research Report

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2022 MVCA Research Report Reinforces Michigan is not a flyover state for venture capital activity 

Record-breaking funding of start-ups in 2021 cements Michigan’s role as the nation’s Middle Coast of venture capital. 

NOVI, Mich. – July 28, 2022 – Michigan Venture Capital Association (MVCA), the nonprofit trade association that advocates for more capital and talent for Michigan’s entrepreneurial and investment community, released its 2022 MVCA Research Report, a comprehensive analysis of investment activity that has had a positive impact in the state. 

Since 2006, MVCA has seen significant growth with $6.6 billion of venture capital that has been invested in 1,593 deals in Michigan. In 2021, an article in Crunchbase points to Michigan as the fastest growing state for VC investment “No state has seen its venture money increase in the last five years as much as Michigan”. 

The 2022 MVCA Research Report shows 161 Michigan startups received more than $1.4 billion in venture capital investment in 2021. 

Some additional key findings from the 2022 MVCA Research Report: 

• There are 154 venture-backed startups in Michigan, an increase of 56 percent over the last five years. 

• Total venture capital funds under management of firms headquartered in Michigan in 2021 was $5.4 billion, an increase of 100 percent over the last five years. 

• There were 19 exits by Michigan VC-backed startups in 2021, the largest amount of exits in a given year. 

• 14.7 percent of Michigan venture-backed startups were led by a diverse CEO, compared to 7.6 percent of diverse CEOs of Fortune 500 companies nationally. 

• Every dollar invested in a Michigan startup by a Michigan venture capital firm attracts $42.87 of investment from outside of Michigan. 

• Remaining capital available for new investments in 2021 was $527.6 million. As for follow-on funding for startups, it is expected that $236.8 million is reserved for existing Michigan-based portfolio startups. 

• In Michigan, 111 startups raised over $76 million from angel investors in 2021. 

“For a year that saw many records being broken nationwide, we were proud to see that Michigan beat both the National and Great Lakes region average for investment volume,” said Jeffrey Rinvelt, MVCA Chairperson and Partner of Renaissance Venture Capital “Our report is more than facts and figures; it tells the story of the enormous impact and resiliency of the venture-backed businesses and how Michigan is becoming a leader within the Great Lakes region.” 

To mark MVCA’s 20th anniversary, the 2022 Research Report features several new design enhancements and partnerships to increase awareness of the important contributions made to the Michigan entrepreneurial and investment community. 

“This latest report release continues to highlight the necessity of venture capital for economic growth in Michigan but also provide the stories which have had a positive impact to Michigan for decades,” said Ara Topouzian, Executive Director of Michigan Venture Capital Association. MVCA partnered with PitchBook, Crunchbase, National Venture Capital Association, Michigan Angel Fund, MVCA members and HOUR Media to create the 2022 Research Report. 

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