POWERING MICHIGAN STARTUPS

By any definition, 2020 was the most difficult and challenging year we have seen in generations. As a team fiercely committed to our companies and Michigan’s startup ecosystem, it was our great privilege to be able to support both. With funding from Michigan Economic Development Corporation and the New Economy Initiative, we launched the Tech Startup Stabilization Fund to help stabilize startups hardest hit by the economic downturn. We launched a fund to support entrepreneurs of color to begin leveling the playing field in pursuing venture capital. We created virtual programming so our startups could stay informed and connected.

These are just a few of the ways we supported the community in 2020, which resulted in our most active year to date. The following report details more of last year’s activity.
 
The ID Ventures team is honored to have had the opportunity to provide this level of support to Michigan companies and proud to be part of this supportive and resilient community. Thank you for your partnership.

2020 Investment and Company Highlights (see info-pic in bottom slide)

Tech Startup Stabilization Fund 

As offices, shops, and other public spaces began to shut down in March due to COVID, the deep and negative impact on local markets became quickly apparent. Fast and uncomplicated access to capital became critical in helping to stabilize Michigan startups while they quickly adapted to a new set of profound challenges.
 
With support from the Michigan Economic Development Corporation and Detroit-based New Economy Initiative, we launched the Tech Startup Stabilization Fund in April 2020 to provide runway capital to startups most impacted by the economic downturn. We funded 58 companies in 12 weeks through the fund, adding 32 new companies to the ID Ventures portfolio.

First Capital Fund

First Capital Fund made $5.8M in total investments to 66 companies in 2020. As we work to fundraise $40M in philanthropic support, our goal is to turn this fund into an evergreen, self-sustaining source of early-stage capital for years to come. Initial supporters of this effort include Michigan Economic Development Corporation, Ralph C. Wilson Jr. Foundation, and New Economy Initiative.

The First Capital Fund provides an initial investment with follow-on opportunities. The fund is milestone-driven and focused on helping companies achieve additional funding from angel or venture investors. FCF is for new technology companies at the earliest stages of commercialization in Michigan seeking pre-seed and seed stage investment.

Funding, Access and Mentorship (FAM) Program 

Toward the end of 2020, the ID Ventures team launched a new fund to support underrepresented founders and founding teams of Michigan-based startups in the post-idea to early-MVP stage. By providing capital and partnership, the goal is to help fill the friends and family financing gap while preparing companies for their next investment round.
 
ID Ventures will invest $10-25K in 4-6 eligible startups each year. Companies awarded with funding will be paired with a core member of the ID Ventures team for a 3-6 month execution sprint focused on measuring mutually created quantitative and qualitative milestones. During this time, companies will be supported with resources and connections afforded to our full portfolio. At the end of the sprint, team members will evaluate progress, reassess market opportunity, and will help with a plan to move forward.

2020 Ecosystem Activity

ID Ventures Webinars 

Due to the pandemic, we pivoted to offering online programming in 2020 and held 4 webinars with ecosystem startup experts including startup expert Ted Dacko. Topics included: Responsibilities of Early Stage CEOs, Sales Essentials for Entrepreneurs, Building a Killer Entrepreneurial Team and Building, Communicating and Working with a Board.

Google for Startups’ Mini Lab Series

Our partnership with Google for Startups helped us offer founding team members a Founder Mini Lab series on innovation and leadership. The Founder Mini Lab is a series of online workshops that experiment with and test new ideas of leading startups. Throughout these online facilitated sessions, they shared insights and tools while also creating opportunities for founders to learn from one another. Topics included: What Make an Effective Founder, Invite Disagreement, Hold Consistent Expectations of Co-Founders, and Overcome Discouragement.

The Year Ahead

With hope, optimism, and continued commitment to our mission, we are looking forward to continuing the momentum built in 2020. In addition to our continued investment in Michigan’s most promising startups, additional focus will include:

• Growing the ID Ventures team to support our portfolio which more than doubled in size in 2020.
• Completing initial investments in FAM Program companies and beginning a learning process for success.
• Expanding virtual programming with Google for Startups, local experts and mentors, and statewide ecosystem partnerships.
• Continuing fundraising efforts to transform the First Capital Fund into the First Capital Evergreen Fund, a sustainable source of early-stage funding for years to come.

Thank You!
Thank you to our philanthropic supporters who make this work possible.

Michigan Economic Development Corporation
New Economy Initiative
Ralph C. Wilson, Jr Foundation

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About ID Ventures
ID Ventures was created by the nonprofit Invest Detroit in 2009 to enhance its overall mission to support inclusive growth of entrepreneurial ventures. As one of few venture funds located in Detroit, ID Ventures is one of the most active early stage investors in the state and have invested in over 120 Michigan-based companies across multiple sectors including life sciences and healthcare, information technology, fintech, mobility, advanced manufacturing and materials, among others. ID Ventures only invests in Michigan-based companies or those that are in the process of relocating and oversees additional programs designed to grow and support the state’s startup ecosystem.