Extra Crunch Friday: 5 VCs on the future of Michigan's startup ecosystem

Welcome to Extra Crunch Friday

A metonym is a figure of speech where, instead of calling something by its name, we use a word closely associated with it. “The White House” is a metonym for America’s executive branch, just as “Cupertino” stands in for Apple Inc. and “Redmond” signals Microsoft.

“Silicon Valley” evokes the San Francisco – San Jose corridor and its concentration of wealth, talent and innovation, but the COVID-19 pandemic is leading many investors and entrepreneurs to broaden their perspective. (In my San Francisco neighborhood, I’m seeing more moving vans and “for rent” signs than I have in years.)

We cover ecosystems around the world on an ongoing basis, but when Managing Editor Matt Burns offered to survey several Michigan-based VCs about the future of his state’s startup scene, I was eager to see what what he’d come back with.

According to the Michigan Venture Capital Association (MVCA), the state has 144 VC-backed startups, “an increase of 12% over the last five years,” Matt reports.

With a low cost of living and STEM-focused schools, the region is positioned well for remote workers. Several investors told Matt the pandemic is boosting growth in the state’s life science startups as well.

Here’s who he spoke to:

• Chris Stallman, partner, Fontinalis Partners
• Patricia Glaza, EVP and managing director, ID Ventures
• Chris Rizik, CEO and fund manager, Renaissance Venture Capital
• Tim Streit, partner, Grand Ventures
• Turner Novak, general partner, Gelt VC

Thanks very much for reading Extra Crunch this week!

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

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