Economic Dinner Group 11-2025

Transcript

1. Startup Detroit:  From Legacy to Launchpad 
3. University of Michigan, not University of Ann Arbor?
5. THE CITY THAT REINVENTS ITSELF
6. Secret History of Michigan Popular History of Michigan 1850 – 1950s Ice Stoves Blues & Jazz Cereal & Food Processing Furniture Cars Beer Unions Middle class 1960 – 1970s Motown & Soul Funk & Rock Pizza Anti-war movement Labor & Black Power Oil crisis & Unemployment 1980s Japanese auto industry disruption Punk Techno More pizza 1990s NAFTA Internet startups Hip-hop 2000s Life sciences Advanced manufacturing Mortgages Tanks & aerospace Chemicals Military computing Time-shared computing Remote sensing Complex systems Automotive R&D Computer vision Artificial intelligence Birth of the Internet Industrial automation & robotics Internet protocols & governance Cybersecurity Gaming AI for Defense Dilla Time More networking & cybersecurity Fintech Enterprise SaaS Supply chain & Logistics Semiconductor Robotics Energy & Climate Tech
7. New Businesses Create All Net New Jobs Net Job Creation Rate (%)
8. The Jobs We Need To Grow Small Main St Businesses Medium Main St Businesses Early Tech Startups Growth & Scale Startups Large Enterprises Typical Employees < 10 10 – 50 3 – 50 50 – 1000 1000 Typical Wages Annual: $10k – 30k $8 – $15 per hour, often only part-time Annual: $10k – $75k Annual: $40k – $250k+ + equity ownership Annual: $40k – $500k+ + equity ownership Annual: $25k – $1m+ Widely varied, based on sector Wage Mobility Extremely limited Limited Strong Generally yes Depends on type of company Often yes Depends on type of company Employee Benefits Rarely Sometimes Generally yes Generally yes Generally yes Source: Upsurge Baltimore 2022
9. Growth requires Young People seeking Careers in Growth Industries with Startups by Founders & Funders driving A Culture of Innovation
10. THESE ARE THE TIMES TO GROW OUR SOULS – Grace Lee Boggs
11. Frontier Tech in Detroit Region 🧠 Intelligent Systems 🧬 Health Innovation 🏗 Reindustrialization 🚗 Future Cities & Mobility Software-first innovation driving automation, autonomy, & security Human-centered breakthroughs in science, health, and care Next-gen tools for building and powering the future Transforming how we move, live, and connect in cities • AI & Machine Learning • Robotics & Automation • Cybersecurity & Defense • Biotech & Life Sciences • Healthcare Tech • Digital Health & MedTech • Adv. Manufacturing • Materials Science • Clean Energy • Mobility & Transportation • Smart Infrastructure • Urban Tech
12. 1 Startup Genome Global Startup Ecosystem Report, 2022 2 Pitchbook Global VC Ecosystem Rankings report, 2023  DETROIT IS AMERICA’S NEXT   GREAT STARTUP HUB  Ranked as the 2nd emerging startup ecosystem globally in 2022, metro Detroit (incl. Ann Arbor) is home to over 1500 startups 1 $4 billion in venture capital was invested in Detroit startups from 2017 to 2023 2 FOUNDERS ARE THE FLYWHEEL — when they stay, grow, and give back, the ecosystem compounds
13. Sept 2018 $2.4B Nov 2020 $1.4B Jan 2021 $6B Apr 2021 $6B Apr 2021 $3.8B Jan 2022 $3.5B May 2022 $23B Feb 2023 $1.2B Jul 2024 $30B Oct 2024 $1.2B Dec 2024 $10.6B Aug 2025 $2.3B Grand Rapids Novi Ann Arbor Plymouth Rochester Ann Arbor Detroit Livonia Troy Novi Ann Arbor Houghton
14. Sept 2018 $2.4B Nov 2020 $1.4B Jan 2021 $6B Apr 2021 $6B Apr 2021 $3.8B Jan 2022 $3.5B May 2022 $23B Feb 2023 $1.2B Jul 2024 $30B Oct 2024 $1.2B Dec 2024 $10.6B Aug 2025 $2.3B Grand Rapids Novi Ann Arbor Plymouth Rochester Ann Arbor Detroit Livonia Troy Novi Ann Arbor Houghton California California
15. U-M is #8 in VC-Backed Founders (undergrad, 2004) PitchBook Universities: Top 100 colleges ranked by startup founders: https://pitchbook.com/news/articles/pitchbook-university-rankings
16. But Only 3 of 46 U-M Unicorns Are In Michigan
17. UNIVERSITY OF MICHIGAN CENTER FOR INNOVATION (2027) HENRY FORD HEALTH + MSU FUTURE OF HEALTH (2027) BEDROCK GRATIOT INNOVATION DISTRICT (2027?) WSU HEALTH SCIENCES RESEARCH BUILDING (2027)
18. Bedrock Gratiot Innovation District UM Center for Innovation Michigan Central WSU Health Sciences Research Building OUTPOSTS OF INNOVATION Henry Ford + MSU Future of Health & TechTown
19. UM Center for Innovation Michigan Central The Mothership City Bus Lines D2A2 Bus QLine Streetcar Rosa Parks Transit Center DAX Bus People Mover NEED BRIDGES Henry Ford + MSU Future of Health & TechTown Bedrock Gratiot Innovation District WSU Health Sciences Research Building Chroma
20. DIA Woodward Ave CONNECTING PEOPLE & PLACE DOWNTOWN MIDTOWN NORTH END Grand Blvd Fisher 21 Lofts Oak and Reel Vault of Midnight Submerge Records Olympia Skateshop Baobab Fare Sepia Coffee Ford Piquette Museum SYNECDOCHE Mothership Tech Town Medical Center Chinatown Ford Field LCA UMCI WSU Gratiot Site Cass Ave N MILWAUKEE JUNCTION
21. LITTLE VILLAGE & THE SHEPHERD ANCHOR DETROIT DURFEE INNOVATION CENTER CHINATOWN CULTURE & COMMUNITY
22. LITTLE VILLAGE & THE SHEPHERD ANCHOR DETROIT DURFEE INNOVATION CENTER CHINATOWN CULTURE & COMMUNITY
23. Tech Equity
24. Investing In Startups, Building Communities • 500.co Funds 1-3 (2010-15, $160M, ~1250 companies, ~60 countries) ◦ 70% fail (50% fail fast, 20% slow): 900 co's x 5 ppl = 4,000 jobs for 1-2 yrs ◦ 20% small co's (10-50 ppl): 250 co's x 20 ppl = 5,000 jobs for 3+ yrs ◦ 8% medium co's (50-500 ppl): 100 co's x 200 ppl = 20,000 jobs for 5+ yrs ◦ 2% unicorn/IPO (500-2500 ppl): 25 co's x 1000 ppl = 25,000 jobs for 10+ yrs ◦ Result: 50,000+ jobs, $1B+ commercial + residential real estate utilization • Detroit Startup Economy MVP: $50-100M budget, 250–500 companies ◦ $25–50M: Fund of funds (5–10 funds x 50 co's) ◦ $10–20M: Commercial buildings for 100–500 ppl ◦ $10–20M: Residential buildings for 100–500 ppl ◦ $5–10M: Traditional debt lending for 10–50 co's ◦ Goal: 10–25,000+ jobs, $100–500M commercial + residential RE utilization
25. Matt Temkin’s residential rental business in Detroit was humming along for its first five years. Since 2015, Temkin and his partners — who went on to found Greatwater Opportunity Capital — had steadily built a portfolio of about 2,200 residential rental units. Then the COVID-19 pandemic hit. The cost of construction and property insurance skyrocketed. Rent collections faltered as tenants failed to pay. Now, Temkin said his rental business in Detroit is in danger of collapse. “We have 131 units that are in imminent danger of foreclosure,” Temkin said. “In 10 years of doing this, we had never missed mortgage payments until right now.” Greatwater isn’t alone. Four landlords managing thousands of units told Outlier Media it’s become nearly impossible to run a profitable residential rental business in the city. “If there are significant unknowns … many owners are just going to give up on (Detroit),” said David Alade, CEO of development firm Century Partners. “We’re going to lose a lot of good owners, and we’re going to lose a lot of good properties.”
27. Catalytic Capital at Work $100K $3.3M $25K $1.2M $1.4M $20M $25K $50K $50K $2.1M $50K $3.7M
28. Next-Gen Family Office & Institutional LPs
29. Ann Arbor Detroit Royal Oak Grand Rapids
30. Recently Announced
31. Subnational Diplomacy
36. Guerilla Economic Development
37. Michigan Tech Week: VIP Tour
38. Michigan Innovation Summit (for Tech Hubs)
39. Innovation Roadtrip: Indianapolis
40. Innovation Roadtrip: Columbus
41. Mackinac Policy Conference
42. Global Entrepreneurship Congress
43. Michigan Opportunity Fund
44. INNOVATION IS COLLECTIVE
45. FREAKS GEEKS JOCKS
46. Reindustrialize, Recess Conference
47. DETROIT IS BIG ENOUGH TO MATTER IN THE WORLD… AND SMALL ENOUGH FOR YOU TO MATTER IN IT – Jeanette Pierce