Attracting out-of-state capital is critical to Michigan’s economy

Michigan’s 33 venture capital firms estimate that the funds needed for new investments, coupled with the need for follow-on funding for their 141 Michigan-based startups, exceeds what is currently available, reflecting the need for additional funds to help Michigan’s many venture capital backed companies. businesses succeed.

With considerable business development in the entrepreneurial community, having a strong venture capital community in Michigan will play a critical role in attracting and securing much-needed out-of-state investment capital.

Local venture capital investment professionals are often the first to identify high-growth and high-potential companies, build close partnerships with growing companies, and make important connections with key stakeholders. Michigan’s entrepreneurial and investment community is increasingly recognized nationally and is uniquely positioned to attract significant capital from out of state, largely through a combination of research, diverse talents, ideas and leadership.

Currently, every dollar invested in a Michigan startup by a Michigan venture capital firm attracts $4.61 of investment from outside Michigan. This data shows that entrepreneurs who are backed by venture capital investments in and out of state have an advantage because they can leverage the expertise and investment of local investors to grow their business while raising funds from out-of-state businesses. professionals to take their business to the next level, which translates to greater economic opportunities in the state.

State legislators must pay attention to the needs of Michigan entrepreneurs and investors to maintain its competitive edge and build a stable and diverse economy. There is enormous potential and talent in the state, but we need to support venture capitalists who invest in and support our entrepreneurs. If Michigan is to continue to leverage the momentum of our vibrant community of entrepreneurs and investors, we must ensure that our high-growth, high-potential businesses have access to the seed capital they need to continue. to grow businesses in Michigan, keeping them in Michigan. , and ensure Michigan’s long-term economic health.