San Francisco’s Startup Genome and New York City’s Endeavor are working together to research and support the development of an ecosystem of entrepreneurship and innovation in the Detroit area.
With the support of the William Davidson Foundation in Birmingham, the parties will work together to develop growth and technology-oriented startups with the goal of identifying key gaps and opportunities to actively support founders. We assessed the current entrepreneurial spirit.
Detroit was recently recognized as the #1 Emerging Startup Ecosystem in the World in Startup Genome’s Annual Global Startup Ecosystem Report 2022.
With successful companies in metropolitan Detroit such as Airspace Link, Autobooks, Bloomscape, DUO, Floyd, The Lip Bar, Our Next Energy, StockX and Workit Health, data-driven It became clear that an evaluation was necessary. Driven by research and by founder involvement.
With over 125 clients in more than 45 countries on six continents to date, Startup Genome is the leading research and policy advisory body for governments and private institutions committed to advancing the startup ecosystem.
Using a combination of proprietary methodologies such as the 50 founder survey, Startup Genome, Endeavor, local project leader and Detroit-based entrepreneur Justin Mast, and working closely with key community partners to learn more conducted a comprehensive analysis and defined priority recommendations.
Local findings include:
- The ecosystem has moved up 12 places in the Global Startup Ecosystem Report from 2021 and now counts nearly 1,500 active startups across the region, generating billions of dollars in exits over the past five years.
- Global research by Startup Genome shows that founders in the Detroit area are more connected to local peers, investors and experts, a leading indicator of startup growth and success.
- Founders feel there is no clear strategy to lead efforts in the region, disparate support organizations (accelerators, incubators, and other ESOs), and limited resources to support growth and scaling. We believe that we only provide services.
- When it comes to exits and scaling, founders are aiming low compared to other national and global regions, limiting prospects and potential for success. Nevertheless, the Detroit area generated more of his $100 million-plus exits than his US peers.
- The founders believe that local angel groups and investors can provide more support and adapt more current practices focused on growth and scale. There is not enough capital to deploy, too few active investors in the region, and too few people taking the necessary risks in start-ups.
- Compared to their peers, this sector shows that companies are less successful in securing seed funding and even less successful in securing Series A funding. Companies that secure Series A rounds show lower valuations on average than comparable cities.
“We are excited to help the people of the Detroit area build a thriving and inclusive startup ecosystem as engines of growth and happiness. It has all the ingredients needed to build a , but lacks a cohesive, data-driven strategy, said Marc Penzel, founder and president of Startup Genome.
Endeavor outlined an initial area of opportunity based on the assessment results. These actions include convening and coordinating regional efforts around a more unified strategy; ensuring efforts are Founder-driven and Founder-focused; , and promoting policies and advocacy to spur local funds into more early-stage investment. Supporting high-performing ESOs and ESOs in need of technical assistance, increasing transparency on the performance of accelerators, incubators and ESOs, advancing regional storytelling to build momentum, and providing greater visibility and investment. increase.
“We believe Detroit has the potential to become a world-class destination for high-growth entrepreneurs. This study provides actionable insights to help us get there.” It’s been a long time coming,” said Diana Callahan, Managing Director of Endeavor.
A webinar will be held on January 25th at 11:30 AM EST, featuring key findings, community reactions, and Q&A. Anyone can participate. Please reply here.
For more information on Startup Genome, please visit: startupgenome.com.
For more information on Endeavor’s Detroit Affiliate, please visit www.endeavor.com. effort detroit.org.