Innovation Panel: Michigan Entrepreneurship On The Rise
MACKINAC ISLAND (WWJ) - Outperform.
Eclipse.
And chaos, but that's good.
Those are the words that will describe the Michigan economy five years from now, according to a panel of successful entrepreneurs that discussed innovation Tuesday at the Detroit Regional Chamber's Mackinac Policy Conference.
Outperform, as in outperforming the national economy, according to Detroit venture capitalist Chris Rizik. Eclipse, as in eclipse our former automotive-era greatness, according to Detroit entrepreneur Angel Gambino. And chaos, but that's good, according to Grand Rapids social entrepreneur Rick DeVos.
Dave Zilko, co-founder of Garden Fresh Salsa, kicked off the panel by describing how he built a business from a $2,500 credit card loan to $110 million in sales this year (up from $4.6 million in 2003).
Rizik talked about how Gov. Rick Snyder talked him into leaving a law practice for a life in venture capital and entrepreneurship. He manages a venture capital fund of funds that invests in other venture capital firms -- provided they're willing to study deals in Michigan. He also started up SoulTracks.com, the Internet's most popular soul music site.
Gambino left what she thought was her dream job as a lawyer for the Humane Society of the United States for a life in Internet startups, one of which sold for $850 million, which left her able to become an angel investor -- literally. Today she's bringing technology, retail and creative types to Detroit on investment recruitment drives.
And DeVos started ArtPrize four years ago, the world's largest art prize competition, and the only one determined mostly by public vote. The only requirements, DeVos said, is that the artists be at least 18 years old and agree to display their art in a four square mile area of downtown Grand Rapids. "We don't define what art is or where it can be displayed," DeVos said. "It's a wonderful, libertarian thing." The effort drew more than 400,000 visits to Grand Rapids last year. Most recently, DeVos launched Start Garden, a $15 million seed fund that invests its money in $5,000 chunks in weekly competitions among business and nonprofit startup ideas.
When asked what the biggest roadblocks are to entrepreneurship in Michigan, DeVos said it's "culture. All of these goofballs working on screwy things 100 years ago, people thought they were toys at the time, built huge companies. That made us prosperous, but it also moved us away from the chaos and weirdness of startups."
But both DeVos and Zilko said they're seeing a cultural change in Michigan, increasing acceptance of that chaos and weirdness.
Moderator Josh Linkner, a serial tech entrepreneur himself, agreed, saying Detroit is now home to more than a dozen venture capital firms.
Gambino urged Michigan to consider "radical ideas," noting that "there are lots of places in the world where college is free ... that's a really radical idea" that could draw people to Michigan. So could cleaning up Detroit's vacant buildings -- she complained that "there are some property owners just sitting on (buildings), making our city look like crap."
All agreed that there's also a change in the national perception of Detroit -- when you tell people you're from Detroit these days, rather than the near-universal "I'm so sorry" response you got a decade ago, today there's more of a reaction of intrigue.
