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Dug Song
November 03, 2023


Keynote for A2Y Chamber IMPACT 2023

Dug Song

November 03, 2023

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  1. Apr 2021 $3.8B Apr 2021 $6B Feb 2023 $1.2B Sept

    2018 $2.4B Nov 2020 $1.4B Jan 2021 $6B
  2. From Industrial to Digital Revolution Rank Metropolitan Statistical Area State

    Avg Earnings Metropolitan Statistical Area State Avg Earnings 1 Bridgeport-Stamford-Norwalk CT $54,194 Bridgeport-Stamford-Norwalk CT $83,470 2 Flint MI $53,463 San Jose-Sunnyvale-Santa Clara CA $81,541 3 Detroit-Warren-Dearborn MI $53,290 San Francisco-Oakland-Hayward CA $76,697 4 Midland MI $51,043 Washington-Arlington-Alexandria DC-VA $69,890 5 Washington-Arlington-Alexandria DC-VA $50,093 Seattle-Tacoma-Bellevue WA $65,580 6 Saginaw MI $49,469 Boston-Cambridge-Newton MA $65,131 7 Midland TX $49,319 Trenton NJ $64,939 8 Casper WY $49,310 New York-Newark-Jersey City NY-NJ $64,055 9 Monroe MI $49,107 Boulder CO $61,161 10 Bremerton-Silverdale WA $48,987 Baltimore-Columbia-Towson MD $60,418 Source: Jonathan Gruber & Simon Johnson, Jump-Starting America 1980 2016
  3. 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
  4. Transit Walkable retail & entertainment Public safety Cultural amenities Housing

    options Public spaces & infrastructure 2016: Austin
  5. Young & Educated Hierarchy of Needs 15% PRIORITY 50% Politics

    Social Policies, Taxes People & Place Walkability, Affordability, Transit, Weather, Amenities, Safety, Schools (property values) Economy Career Opportunities In Growth Industries MASLOW SAYS Adulting Chill Vibes Get Paid 35%
  6. Growth → Young People → Careers, not Jobs → Growth

    Industries → Startups → Founders & Funders → Culture of Innovation
  7. Where We Shine Affinity & Community • 50% of Michigan

    college graduates who moved away indicated they might return within five years • 120+ founders and VCs have pledged 1% of personal or company equity or investment carry to Michigan Founders Fund for grantmaking / placemaking R&D • Business R&D spend: 7th • Patents produced: 7th • Academic R&D spend: UMich ranked 3rd Growth & Opportunity • Michigan is the fastest growing state for VC investment (886% 2016-2020) • Ann Arbor was ranked at the top of MSAs for women-founded VC-backed startups, a top 25 innovative US city, and a top new tech hub • Greater Detroit is #1 global emerging startup ecosystem and has seen 37% growth in high-tech employment since 2010 • Growing 4% faster than national average for median wage - ranked 3rd fastest Sources: Crunchbase, Center for American Entrepreneurship, Bloomberg, Entrypoint Detroit Entrepreneurial Ecosystem Report 2021, NSF, NCES FY20 data BCG Analysis, NCES FY21 data, Occupational Employment and Wage Statistics (OEWS) by US Bureau of Labor statistics (BLS), accessed 04/24/2023, BCG Analysis, Survey of more than 6,600 2017 graduates conducted by The Office for Survey Research at Michigan State University’s Institute for Public Policy and Social Research
  8. UMich #8 in VC-Backed Founders (undergraduate) PitchBook Universities: Top 100

    colleges ranked by startup founders: https://pitchbook.com/news/articles/pitchbook-university-rankings
  9. Where We Struggle Startup Density • Low founder density: 35th

    • # of startups per 1,000 businesses: 33rd • # of VC-backed companies per million residents: 34th Capital • Less than 1% of all US VC investment • Forbes best states to start a business in 2023: 47th • Michigan startups take 2 years longer on average to raise first $500k than coastal startups • Median individual angel investment in 2020 was $30k Talent • % of workforce in tech roles: 30th • Residents’ education levels: 27th • Post-secondary attainment is 41.7% (43.5% White, 26.2% Black) • Negative net migration • Lowest national % of non-homegrown residents ages 25-34; second-lowest ages 35-44 • % of adults who were born elsewhere, either in another state or another country: 49th Equity • Black population 14%; Startups with at least one black founder: 4.5% • 17% of VCs are persons of color, compared to 24% nationally • 17% of VCs are women, compared to 21% nationally Sources: Crunchbase; Expert interviews; BCG Analysis, Kauffman; WalletHub, IRS.gov; BCG Analysis, Occupational Employment and Wage Statistics (OEWS) by US Bureau of Labor statistics (BLS), LEO, US Census Bureau 2016 data; Bridge Michigan Analysis, Forbes, "Michigan's Great Inflection" report MICHauto, NBER Working Paper - Funding Black High-Growth Startups, 2021 MVCA Report
  10. Innovation as US Industrial Policy SSBCI 2.0: $10B via American

    Rescue Plan - Michigan allocated $236.9m, $75m going to Michigan Strategic Fund (toward VC, etc.) NSF Engines: $6.5B over 5 years: Up to $160m per hub to fund 10 years of R&D, translation, workforce development CHIPS & Science Act: $280B to bolster semiconductor capacity, catalyze R&D, create regional high-tech hubs and grow a more inclusive STEM workforce Inflation Reduction Act: $370B to fund clean energy and lower carbon emissions Bipartisan Infrastructure Law: $70B of clean-energy tech and demonstration projects Developing & retaining high-growth founders? Support risk taking? Placemaking? Affordability? Transit? Build Back Better Regional Challenge: $1B via American Rescue Plan - Michigan awarded $52m for Global Epicenter of Mobility (GEM)
  11. Equitable Tech Economic Development Access to Opportunity A level playing

    field that reduces barriers Access to Knowledge Real-world experience for workforce & founders Access to Funding A holistic, accessible approach to capital Access to Support The ability for all to take risks & succeed America’s New Business Plan: https://www.startusupnow.org/anbp
  12. Startup Culture is Verbs, Not Nouns Advocate Partner with business,

    education, and policymakers to ensure tech & innovation benefits all Promote Celebrate and amplify startup success; broadcast our startup culture Connect Social infrastructure for founder-led ecosystem development, learning, inclusion Founders & Startups Engaging, attracting, supporting startups Capital Grow local capital and attract outside capital into the ecosystem Talent Attract, retain, and develop new talent and pathways
  13. Bottom-Up: Startup Communities, vs Programs • Entrepreneurs must lead the

    startup community • The leaders must have a long-term commitment • The startup community must be inclusive for anyone to participate • The community must continuously engage the entire entrepreneurial stack Entrepreneurs- Must Lead The- Startup Community-
  14. Culture, Community, Connection Trista Van Tine Exec Director Sarah Craft

    Head of Community Pete Martin Head of Connection
  15. Mission Grow the presence of high-growth ventures and advance civic

    leadership in Michigan’s entrepreneurial ecosystem by 1. Creating an inclusive, diverse, and active founder-to-founder support network to help high-growth company leaders succeed in their ventures 2. Driving a purposeful, founders-for-founders culture 3. Providing founders with a simple platform for philanthropic giving, and opportunities to become community leaders as well as business leaders
  16. Silicon Valley works because there is such a high density

    of people working on startups and they are inclined to help each other… One of the biggest misconceptions about us is that you need to have pre-existing connections to get value from the network. Remarkably, you don’t. Silicon Valley is a community of outsiders that have come together. If you build something good, people will help you. – Sam Altman (YCombinator) Culture Matters