2021
Annual
Report
As a team fiercely committed to our companies and Michigan’s startup ecosystem, it Is our great privilege to be able to serve both.
Last year was a busy year for the IDV team. We launched two new funds: IDV IV, an early-stage, broad industry fund, and the FAM Program, a new fund to support entrepreneurs of color to begin leveling the playing field in pursuing venture capital. 32 investments were made in Michigan-founded companies. Two new team members were added to drive new investments and help our portfolio companies scale. We expanded virtual programming so our startups could stay informed and connected. Many of our portfolio companies raised significant rounds of funding in 2021, showcasing the quality of our state’s start-ups and providing them with tremendous amounts of capital to grow and scale.
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 collaborative and resilient community. The following report details more of last year’s activity. Thank you for your partnership!
2021 Impact
$2.3 Million DEPLOYED
$418 Million Leveraged
32 Investments in 26 companies
64% Founders of color, women, immigrant, Detroit residents
162 jobs created
2 exits
2021 Investments by Sector
2021 Investments By County
Creation oF IDV IV
IDV IV is our fourth fund and will have broad industry coverage with focus on core Michigan strengths in life sciences/healthcare, mobility/transportation, information technology including artificial intelligence and machine learning, advanced manufacturing, materials, and consumer products. It builds on the $22 million invested in 175 companies over the past decade. The Fund is well-positioned to continue our track record of providing investment opportunities to underserved populations, including women, minority, and immigrant-led founders, currently representing 50% of our portfolio (more than double the national average of 23%).
The unique fund structure combines traditional investment capital with philanthropic capital to better serve Michigan’s entrepreneurs. IDV IV builds on the success of our first hybrid fund, Detroit Innovate I Fund, which is in the top quartile of fund performance in its vintage year of 2015. Up to half the fund will come from partners that will have their investment returns recycled into the evergreen fund, creating a sustainable source of early-stage funding for decades.
First Capital Fund
First Capital Fund (FCF) made $2.1M in total investments to 25 companies in 2021. As we continue to fundraise, our goal is to transform this evergreen fund into a fully self-sustaining source of early-stage capital for years to come. Initial supporters of this effort include Michigan Economic Development Corporation (MEDC), Ralph C. Wilson Jr. Foundation, New Economy Initiative, and Invest Detroit.
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 high-tech and high-growth companies at the earliest stages of commercialization in Michigan seeking pre-seed and seed stage investment. Our team will write the first institutional check and lead investment rounds.
First Capital Fund: 2021 By The Numbers
$2.1 million Total capital deployed
25 Total companies Funded
28 total investments
$302 million in Follow-on capital raised
91 Jobs created
64% Founders of color, women, immigrant, Detroit residents
Company spotlight
Hush
Hush is a Detroit startup that features a returning Michigan founder. Hush is a B2B2C AI-powered solution designed to protect the privacy, identities, and assets of individuals and their families. Hush searches the far reaches of the internet for potentially compromising content of its users and works to remove or remediate the content. Previously, founder Mykolas Rambus was General Manager of Equifax’s marketing services division, a business unit engaged with thousands of clients ranging from Fortune 25 to SMBs. Before joining Equifax, Mykolas was Co-Founder and CEO at Wealth-X, the leading global wealth data business that he led from inception in 2010 through to sale, his second exit as a co-founder.
First Capital Fund: Cumulative Metrics since 2017
First Capital Fund has been a vital source of early funding for companies in Michigan, since the fund was launched in 2017.
$12.7 Million Total capital deployed
102 Total companies funded
$450 Million in Follow-on capital raised
1,397 Jobs created and Retained
65% Founders of color, women, immigrant, Detroit residents
FAM PROGRAM
Investments
Our FAM Program, which stands for Funding, Access, and Mentorship, was created in 2020 to support underrepresented founders and founding teams of Michigan-based startups in the earliest stage. By providing capital and partnership, our goal with FAM is to help fill the friends and family financing gap while preparing companies for their next investment round. ID Ventures strongly believes in leveling the startup playing field so that all populations have the opportunity to make an impact on Michigan’s thriving startup ecosystem.
Companies awarded with FAM investment are 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 are supported with resources and connections afforded to our full portfolio. At the end of the sprint, the ID Ventures team members evaluate progress, reassess market opportunity, and help with the plan to move forward. In 2021, the IDV team made three FAM investments.
Company spotlight
Reaction Technologies
Reaction Technologies’ initial product, Heads Up, is a small screen intelligent device that mounts on a device (like a tackling dummy) or a person and provides a display back to an athlete. Each time it is used, coaches can provide immediate feedback to the athlete to assist them with the correct technique. When used repeatedly, athletes can build muscle memory for proper technique and enhance skill in their sport while reducing liability from equipment, teams, and sports leagues.
Notable achievements since our investment:
Successful testing of situational awareness and HeadUp products
Twenty-five prototypes complete
Accepted into a VentureWell Accelerator
Finished 2nd at the MIT Sloan Sports Conference
Portfolio
Welcome new companies to the portfolio
Of the 32 startup investments made in 2021, we added eleven new startups into our family of companies.
Portfolio successes
Our portfolio of 107 companies represent some of the most exciting and innovative startups in Michigan. Though many of our companies continued to grow and survive in spite of the ongoing pandemic, here are just a few success highlights from 2021.
WorkIT Health
Workit Health, a virtual addiction treatment startup, raised $118M in a Series C round, with a $500M valuation, led by Insight Partners and additional participation from CVS Health Ventures, FirstMark Capital, BCBS Venture Fund, 3L Capital, and ID Ventures. They were also featured on the Today Show in January of this year.
InvestNext
InvestNext is a real estate software firm that raised $4.3 million last year in a funding round led by Hyde Park Ventures with additional participation from Detroit Venture Partners, and ID Ventures. This funding success helps them toward their goal of creating a one-stop shop where investors and fund managers can keep track of all of the pertinent details and documents involved in real estate investment.
Orbion Space Technology
Orbion Space Technology, a manufacturer of in-space plasma propulsion systems, raised $20M in a Series B round led by U.S.-India VC firm Inventus Capital Partners with additional participation from Material Impact, Beringea, Wakestream Ventures, and ID Ventures. The company has created a cost-effective production capacity to meet the growing demand of startups and developers launching low-Earth orbit satellites.
2021 Saw Two Company Exits
Facility Health was acquired at the end of 2021 by Brightly with the backing of Clearlake Capital Group, LP
Sportsman Tracker was acquired by Kalkomey in September 2021
Ecosystem Activity
Online Programming
In 2021, we continued and expanded the online programming we began in 2020 in response to the ongoing pandemic. We held 13 webinars with ecosystem startup experts including Ted Dacko and Ryan Vaughn. Topics included: Creating a Culture of Innovation; Financial Reporting that Drives Results; Using Mentors; Implementing OKRs; The Dark Side of Crushing It: The Human Cost of a Startup Founder.
Google For Startups Portal
Our partner Google for Startups added a partner network portal that includes an expanded library of online offerings for our portfolio companies and ecosystem. New resources include: Mentorship opportunities with Google, expanded Workshop offerings, a Startup Resources Library, Google Perks, and a Network Directory of partners. They also expanded their accelerator offerings to include specific programs for DEI Founders, and industry specific programs such as Climate Change, Voice AI, and Cloud.
The Year Ahead
In 2022, we will continue our fundraising momentum to bring in both philanthropic grants and LP investments to strengthen IDV IV, First Capital Fund, and our FAM Program. The returns from these funds, particularly from the philanthropic grants, are reinvested back into Michigan startups through our efforts to build a sustainable evergreen fund. We are excited to begin the shift back to in-person meetings and events, as we continue investing in pre-seed and seed-stage investment rounds in Michigan-based start-ups.