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On today’s Business Beat, Jeff talks about how Michigan leads the nation in the biggest increase in venture capital investing and how venture capital is furthering innovation in our state.
Tune in to the Business Beat, below, to learn more about the importance of venture capital:
“… venture capital has growth capital that companies use to accelerate their growth as they move toward either an acquisition or an IPO. It’s critical funding, and, you know, we’ve had some great exits recently in the state. I think of one of the more notable was Duo Security a couple of years ago for $2.3 billion. And when this money comes back into the state from these exits, it fuels further innovation.”
– Jeff Sloan
Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.
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Yeah, good morning, Guy.
You know, this is a great day for those of us in the startup community. Venture capital is the type of capital used to invest in companies, startup companies, and fuel their growth. These are typically high-tech companies, biotech companies, etc., but they’re really critical for those out there listening that think ‘Ah, venture capital is not something I need to pay attention to.’
Listen: Venture capital drives the companies that fuel the innovation that impact our daily lives, whether it’s picking up an iPhone and making a phone call using Google to do research — you know, the Moderna vaccination, for example — all driven by venture capital investment, really critical. Michigan’s venture capital investment over the last five years has surged 886%, and it leads the nation now in the biggest increase in venture capital investing, Guy.
Isn’t that incredible? What does that mean for our status going forward with new jobs, new technology? Are we now a better cradle?
Yeah, indeed. I mean, we’re not Silicon Valley yet. Let’s put this in perspective. Our total investment is somewhere around 250 million in 2020, 350 million in 2019 but growing significantly more venture capital flowing into the Midwest.
And as you said, Guy, this impacts our daily lives, not only driving innovation, but it brings great, highly skilled workers to our area. These guys, you know, get top-paying jobs. They come in. They spend in our local economy, and it’s good for all of us. And, you know, not to mention, too, on the softer side of things, it creates a vibrant culture as well.
You know, these are young people with dynamic ideas and ambition that really, you know, take our region and make it someplace special. They’re fueling innovation here.
Well, and it’s why we need to continue to invest in infrastructure, need to continue to invest in good schools, because we need to make sure that these people want to stay here after they chase the venture capital dollars.
Guy, that’s a really strong point, and venture capital has growth capital that companies use to accelerate their growth as they move toward either an acquisition or an IPO. It’s critical funding, and, you know, we’ve had some great exits recently in the state. I think of one of the more notable was Duo Security a couple of years ago for $2.3 billion.
And when this money comes back into the state from these exits, Guy, it fuels further innovation. These guys invest in the funds that then fuel the companies that, you know, drive, and it’s all cyclical. It all builds on itself, and that’s an exciting day for us, Guy.
It really is, and it’s always nice to be number one in something good for once.
Yes, indeed. Indeed, it is, and this is a good thing to be number one.
Jeff Sloan, And I know you will be talking about this more in your Business Beats coming forward because there’s much more to explore here. Jeff, take care. Have a great Wednesday.
Thanks. Have a great day, Guy.
This segment brought to you by Dell Technologies.