ANN ARBOR – In the last three years, there has been a 20 percent increase in the number of venture-capital-backed startups in Michigan, a new survey shows, with West Michigan companies making up a third of them.

The seed, startup, early stage and growth companies represented equally with approximately a third in West Michigan at each stage of growth, says the 2017 West Michigan Entrepreneurial Study, a comprehensive analysis of the entrepreneurial and investment community across West Michigan from Kalamazoo to Grand Rapids.

“It has become increasingly clear that West Michigan is a leader in innovation, talent, and entrepreneurship and plays a critical role in driving Michigan’s entrepreneurial and investment community forward,” said MVCA Executive Director, Maureen Miller Brosnan. “West Michigan is a perfect example of a region that’s supporting companies at all stages of growth and across industry sectors, which is a key factor in building a strong economy in the State of Michigan.”

The study reveals there is a strong pipeline of venture-backed startups throughout company growth stages. These findings highlight the advancement and vibrancy of the region’s entrepreneurial and investment community.

“From the beach to the board room, West Michigan is a marvelous region for entrepreneurs who are looking to build a business, life, and family,” said Craig Hall, serial entrepreneur, investor at Lee Shore Enterprises and chair of the Local Development Finance Authority board governing the Holland SmartZone. “The area embodies the very ideal of the entrepreneurial and investment community’s forward-thinking vision of a high performing and empowering entrepreneurial ecosystem – all wrapped in a beautiful, welcoming and imminently livable environment. In doing so, it uniquely engages its business, not-for-profit, and governmental organizations into an effective collaborative culture helping ensure growing prosperity for years to come.”

Additionally, the study found 50 percent of the startup companies that have received venture capital funding in the region are life science companies, and 29 percent are information technology companies.  Having a full pipeline of businesses at all stages of growth and across many sectors creates a breadth of opportunities for the people and businesses in Michigan.

2017 West Michigan Study Key Findings

  • There are currently 28 venture-backed startups in West Michigan; this represents 20 percent of the startup companies growing in Michigan.
  • In the last three years, there has been a 20 percent increase in the number of West Michigan startup companies.
  • 50 percent of the startup companies that have received venture capital funding in the region are life science companies, and 29 percent are information technology companies. 
  • 36 percent of venture-backed startups in West Michigan are in the seed stage, 28 percent are in the startup/early stage, and 29 percent are in the growth/expansion stage.
  • There are six venture firms headquartered or with an office in the West Michigan; these firms represent 20 percent of the venture capital firms in Michigan.
  • In the last year, 13 startups in West Michigan received more than $58,000,000 from venture capital firms.

For more information and a complete look at the findings, please visit http://michiganvca.org/research/westmi-study/.

For more information on the entrepreneurial and investment landscape in Michigan, check out the NEW! 2017 MVCA Research Report and 2016 Entrepreneurial & Investment Landscape Guide