(BPT) - Silicon Valley may be known as one of the original startup hotbeds, but it's not the only region of the country where entrepreneurs and innovators can bring their ideas to life. In fact, the Midwest has risen to the occasion as the up-and-coming startup hub in the U.S.
Within the Midwest, mid-sized and smaller cities are booming in both visibility and opportunity for entrepreneurs. According to the 2025 Best of the Midwest: Startup City Rankings, cities like Ann Arbor, Michigan; Columbus, Ohio; Cincinnati, Ohio; Indianapolis, Indiana; Madison, Wisconsin; and Lincoln/Omaha, Nebraska, are climbing the ranks, driven by university spinouts, targeted funds and local accelerators.
Ann Arbor, in particular, has surged to become a startup powerhouse. According to the Michigan Economic Development Corporation (MEDC), the Ann Arbor region is known for driving cutting-edge innovation, revolutionary startups and world-class talent igniting inspiration for the next generation. Leveraging talent from the University of Michigan embedded within the city, the regional rankings report found that Ann Arbor performs very well in the raw number of startups, with startup momentum placing second overall and startup density ranking first overall.
Ann Arbor's accomplishments are impressive, but it's not the only city in this Startup State that is leading innovation. Detroit has shown significant global momentum, recently ranking second worldwide for startup ecosystem growth according to PitchBook's Growth Score research. In the northern region of Michigan's lower peninsula, Traverse City is part of the "Creative Coast," having shifted from a tourism-based economy to one that emphasizes technology and entrepreneurship.
Michigan is a place where businesses of all sizes have access to the resources needed to conceptualize and efficiently grow to commercialization.
Michigan: A rising star
Out of the 64 cities that made the 2025 Best of the Midwest: Startup City Rankings list, six Michigan cities were featured, including Ann Arbor, Detroit, Lansing, Grand Rapids, Traverse City and Flint. Their place on this list illustrates the state's significant investments in key initiatives to support a thriving entrepreneurial and innovative ecosystem.
One recent initiative that aims to drive innovation is the PitchMI competition, which will award more than $4 million in direct investment to homegrown innovators. The goal of PitchMI is to spotlight the next generation of innovative companies and, thanks to a partnership between MEDC and the MSU Research Foundation, it's highlighting that founders don't have to leave their home in Michigan to build something world-changing. PitchMI received applications from 375 startups from over 100 different cities across both of Michigan's peninsulas. The initiative split the competition into four regional events:
- Grand Rapids, focusing on health care and life sciences
- Traverse City, focusing on cleantech and outdoor innovation
- Detroit, focusing on mobility, defense and advanced manufacturing
- Ann Arbor, focusing on AI and software
Each event offered the winning startups funding ranging from $325,000 to $375,000 per company. The four startups that advanced to the statewide championship were:
- BedConnect, an online system that shows hospitals which nursing home beds are open so patients can be discharged more efficiently.
- Electric Outdoors, Inc., which builds a portable canopy system that supplies off-grid power, clean water, internet and EV charging for remote camping sites.
- General Orbit, which creates navigation hardware and software that make satellites easier to build and control.
- Adrenaline Interactive, which creates dynamic in-game advertising to help businesses reach and convert gamers into customers.
These companies will go head-to-head at the 517 Entrepreneurship & Innovation Week in April 2026 for an additional $1 million investment and the title of PitchMI State Champion. This investment is one of the largest pitch competition prizes in the country, underscoring Michigan's dedication to innovation.
The PitchMI competition isn't the only way in which the state is providing startups with a leg up. MEDC's entrepreneurial and innovation programs helped launch over 160 startups in 2024, despite a national venture capital slowdown. Thanks to MEDC's partnerships with Michigan's major research universities, support for campus-based incubators (like Ann Arbor SPARK and the MSU Innovation Center) and investments like the Michigan Innovation Fund have been instrumental in driving solutions that are designed to transform industries across the U.S.
Changing the world from the Great Lakes State
Michigan's early-stage companies are solving problems that have the potential to bring real, positive change worldwide. To learn more about Michigan's investments and resources for local startups, visit MichiganBusiness.org.