How established is the venture capital industry in the Midwest, outside of Chicago? Turns out, quite a bit, especially if you look at states like Ohio and Michigan.
In 2019, Ohio businesses raised more than $961 million (No. 16 nationally) through 147 deals, while Michigan saw $771.6 million (No. 21 nationally) through 115 deals.
As a whole, the Midwest is an ideal place to invest. The Brookings Institution asserts that Midwest states have “innovation horsepower, punching at or above their weight on key metrics that drive new business formation.” At the same time, the Chicago Council on Global Affairs calls out Midwest communities for “successfully (evolving) from their industrial and farming roots and … winning in today’s globalized, tech-based and knowledge-driven economy.”
For now, let’s look at a few ways Michigan and Ohio have gotten to where they are. You should note that it’s not about the size of the states; rather, it’s about these states having internal collaboration, creating momentum and putting the pieces together.
The established system these states have in place shows what other states need to do to grow their own venture capital industry.