PARTNERSHIP AND COLLABORATION - Ann Arbor SPARK
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forward together PA R T N E R S H I P A N D C O L L A B O R AT I O N A N N A R B O R S PA R K 2 0 2 0 A N N U A L R E P O R T
from the chair from the president and CEO
The work of economic development is not inherently This past year presented the world with unprecedented
exciting. The process of taking a concept from idea to challenges. It also provided opportunities to extend our reach
market, expanding a business from 30 to 100 employees, to help wherever we could. For the team at SPARK, it meant
or bringing a game-changing business to our region is doing what we always do — thinking entrepreneurially to
often slow and imperceptible. It requires connecting all fill gaps in our regional economic ecosystem and saying,
the dots, engaging everyone who can help, and never missing a detail. As a public- “Yes we can,” when asked to help. This year, this meant expanding our mission to help
private-academic partnership, Ann Arbor SPARK has always fostered the collaborative small local businesses most impacted by the effects of COVID-induced closures.
and innovative culture necessary to this process. But never has that culture been more
In 2020, SPARK re-doubled efforts to assess our partners’ needs and also identify those
important to our region than during this past year.
who could help. Two examples of this work immediately come to mind:
COVID forced us all to adapt to unprecedented realities. We learned how to work and • Federal, state, and local dollars were made available through various grant
learn remotely, to use new tools, and to find new ways to connect with and support opportunities, and SPARK developed new systems to rapidly disperse those funds.
each other and those we serve. SPARK was no different. In collaboration with both • SPARK proactively engaged partners to address business owners’ questions relative
long-standing and new partners, Ann Arbor SPARK nimbly adapted to help the small to navigating the challenges presented by COVID.
businesses hit so hard by the pandemic.
In this annual report, you will read the results of our efforts to support the region’s
SPARK quickly expanded its traditional focus of helping build new business and serving economic vitality, including delivering an expanded a2Tech360 virtually with more
established ones to also become the hub for multiple resources that kept every element partners and a growing national audience, and examples of new initiatives developed
of our local economy moving forward. Those resources included public funding that in direct response to the pandemic. You will also read how our mission-centric work
SPARK worked to secure for our region, as well as private funding sources that looked to continued and delivered — against the odds — economic benefit to our region:
SPARK to ensure it was thoughtfully distributed to do the most good. SPARK created the
• We supported 50 newly formed startups and provided direct support to an additional
processes and marshalled the knowledge needed to provide critically needed funding
267 existing early-stage companies.
to the restaurants, childcare providers, retailers and so many others critical to the fabric
• The Michigan Angel Fund invested $7.2 million in startups, and its portfolio
of our community. But SPARK also continued to do the work it’s always done to be sure
companies have attracted more than 44 times that amount in matching investment.
that when COVID is finally behind us, no momentum has been lost.
• Our business development team’s efforts resulted in $80.8 million in investment and
Since its inception, part of SPARK’s mission has been to ensure the Ann Arbor region is 544 job commitments in our region.
“recognized for our academic, business, and community resources, and our collaborative
culture.” I am proud of the leadership and staff at SPARK who proved this past year While it may have been an unprecedented year, what resulted was unparalleled
how important that culture is to the health of our local economy and how it positively collaboration amongst business and community leaders. We experienced a powerful
impacts the people who make our community so special. reminder of the impact we can have by coming together to help one another. These are
the real successes that are the foundation for our future growth, and the entire team at
Sincerely, Ann Arbor SPARK is proud to be part of that work.
Regards,
David N. Parsigian
CHAIR OF THE BOARD, ANN ARBOR SPARK
Paul Krutko
PRESIDENT AND CHIEF EXECUTIVE OFFICER, ANN ARBOR SPARK
community
ADMINISTERING FUNDS TO THE
awarded to
1.48M
SUPPORTING ESSENTIAL WORKERS
$
WASHTENAW
900k state loans
SMALL BUSINESS
RELIEF FUND 529 companies $
MICHIGAN
$900k distributed to 199
At the onset of COVID-19, Ann Arbor SPARK
SMALL BUSINESS
RELIEF PROGRAM companies IN THE
GREATER ANN ARBOR REGION
$196k a2Helps
quickly mobilized and directly served businesses
in Washtenaw and Livingston counties by
working with partners to deploy critical funding.
MICHIGAN
SMALL BUSINESS
RESTART GRANTS
$8.10M awarded to 1,149
companies IN THE
$ 23k a2Neighbors
GREATER ANN ARBOR REGION
impact 2020 SUCCESSES
181
2015–2020 RESULTS:
company growth projects creating:
13
$768.9 million in new investment
COMPANY 80.8M 544
$ 150 commitments
GROWTH in new announced retained 5,165 announced jobs
PROJECTS investment jobs jobs
CREATING: commitments 732 startups assisted, 526 received
intensive services and have employed
2,636 FTE
9 pre-seed investments awarded to
267 STARTUPS ASSISTED 8 companies ($199k/company avg)
1
191 of those
companies received intensive services and
currently employ 658.5 FTE # Ann Arbor
BEST COLLEGE TOWNS
& CITIES IN AMERICA,
1,607 companies assisted with 6,266 job
postings
96 INCUBATOR TENANTS
SMALL CITIES
WALLETHUB.COM
220 incubator tenants nurtured and 153
incubator graduates
2021
$61.2 million community investments
NURTURED leveraged through federal and state
grants, foundations, and other sources
23 BOOT CAMP TEAMS with 1 job
created and currently employ 38.5 FTE
# 2 Ann Arbor
CITIES WITH THE
BEST PUBLIC SCHOOLS
IN AMERICA
NICHE.COM LDFA ACCOMPLISHMENTS FY 2015-2020:
2021
428 companies served
MICHIGAN ANGEL FUND Managed by Ann Arbor SPARK, MAF is the
979
impact
jobs created
largest angel organization in Michigan. It invests
in very early stage companies across the state
that are not yet primed for venture and other
137 incubator graduates
sources of capital. $5.96 million in grants to startups
$828.9
$1.10M invested into million private equity raised
483 employed 10 companies
$11.3 MILLION INTO 32
COMPANIES SINCE 2012
Part of what makes our services possible is funding
provided by The Ann Arbor/Ypsilanti SmartZone
LDFA, which provides capital to commercialize
$320M total funding
attracted
technologies developed locally. LDFA grows these
companies in Ann Arbor and Ypsilanti, funded by
the State of Michigan.
community FABRIC
TECH TREK, TECH TALK & OTHER EVENTS:
5,827 TOTAL VIRTUAL
REGISTRATIONS
15 TOTAL
EVENTS
9 SPARK-HOSTED
EVENTS
5 PARTNER
EVENTS
PIVOTING TO SERVE
9 TECH TALK
300%
SPEAKERS
Our virtual a2TECH360 exceeded our expectations on every
2 NEW TREKS —
STUDENT & JOB SEEKER level. Delivering content online extended the reach of SPARK
IN SOCIAL MEDIA VIEWS
77K WEBSITE
VISITS
and our partners’ programming outside of the Ann Arbor
region, including attendees from 37 states and 25 countries — the most diverse
3.2M+ SOCIAL MEDIA
VIEWS attendance in the program’s history. We were able to attract speakers from a broader
geography and present their expertise to our audience. The SPARK team is looking
140K CAMPAIGN
EMAILS forward to leveraging this experience for future a2TECH360 programs and continue to
250 STUDENT
REGISTRANTS
grow on this year’s success.
200+ JOB SEEKER
REGISTRANTS While continuing to offer our key educational
5K+ MAP TOUR
VIEWS
programs such as Entrepreneur Boot Camp and
SPARK.ed, Ann Arbor SPARK worked with private
4.5K+ VIDEO TOUR VIEWS
(to-date) sector partners to deliver specific, on-demand
expertise to the business community. In response
165+ HOURS WATCHED
(to-date) to COVID-19, we adapted our programming to
62 PARTICIPATING
COMPANIES
include two new educational tracks: SPARK.lead and SPARK.pivot. These new learning
opportunities were focused on topics such as diversity and inclusion, fundraising in a
19 FASTTRACK AWARD
RECIPIENTS pandemic, and legal considerations in the face of volatile economic conditions.
2020 FINANCIAL HIGHLIGHTS
Michigan Angel Fund $ 99K $ 1.33M Unrestricted Admin, Fundraising
$246K & Marketing
SPARK Central Co-Working
$ 3.27M Business Acceleration
7.6M
$521K
Business Development
$400K
$
Livingston County Support
Business Development Grants
(MEDC, MI Works!, Ypsi Incentive)
$685K Budget Total $ 11M additional small business relief
funding administered in 2020
SPARK East $ 609K
SPARK Central $470K
CURRENT FUNDERS as of December 2020
PRIVATE SECTOR – $25,000+
PRIVATE SECTOR – Honigman LLP Thomson Reuters City of Chelsea WASHTENAW COUNTY SMALL
under $25,000 Huntington Technology University of Michigan City of Dexter BUSINESS RELIEF FUND:
Ann Arbor Area Board Finance Credit Union City of Saline Ann Arbor Area Community
of Realtors IBM Watson Health City of Ypsilanti Foundation
ACADEMIC PARTNERS
Arboretum Ventures IMRA America, Inc. EDC of Livingston County Jenkins Foundation
Eastern Michigan University
Barracuda Networks, Inc. ITC Michigan Michigan Economic New Economy Initiative
University of Michigan
Bodman PLC LLamasoft Development Corporation Ralph C. Wilson, Jr. Foundation
Washtenaw Community College
Butzel Long Attorneys and Menlo Innovations LLC Michigan SBDC TCF Bank
Counselors NSF International PUBLIC PARTNERS Michigan Works! Southeast The Song Foundation
Chelsea State Bank Old National Bank Ann Arbor Charter Township Pittsfield Township DTE Energy Foundation
Citizens Bank Oxford Companies Ann Arbor Downtown Scio Township Pittsfield Township
Comerica Bank Plante Moran, PLLC Development Authority Washtenaw County Chemical Bank
Consumer’s Energy Foundation Ranger Power Ann Arbor/Ypsilanti Ypsilanti Township
Local Development LIVINGSTON COUNTY SMALL
Domino’s Farms Corporation Rehmann BUSINESS RELIEF:
Finance Authority MICHIGAN ANGEL FUND
Fifth Third Bank Reinhart Realtors Livingston County Community
City of Ann Arbor SUPPORT GRANTS:
Ford Motor Company Rudolph Libbe Group Foundation
City of Brighton Ralph C. Wilson, Jr. Foundation
GDI Infotech, Inc. SI Company Consumers Energy Foundation
William Davidson Foundation
partnership & collaboration
Ann Arbor SPARK collaborates
with its public, private, and
academic partners to achieve its
academic
Last year, 48 interns were connected with
mission to bring new companies, 24 companies through SPARK’s internship
program with EASTERN MICHIGAN
new projects, and new economic UNIVERSITY’S Digital Summer Clinic. The
opportunity to our region. interns accelerated the startups’ marketing
efforts while gaining valuable work experience.
Since 2016, 84 percent of the student interns
who went through the program remained in
Michigan post-graduation.
For multiple years, Five UNIVERSITY OF MICHIGAN students were
SPARK has helped us matched with four companies in SPARK’s new
internship program for alternative reality, virtual
find and fund summer
reality, and experiential reality companies. The
interns. These interns students experienced the complex dynamics of
have been invaluable startup life and were exposed to the growth of
as they filled critical AR/VR/XR opportunities in our region.
gaps that, as a lean startup, we couldn’t
WASHTENAW COMMUNITY COLLEGE worked
have filled otherwise. It’s been amazing closely with SPARK to connect soon-to-be
to see how the program has helped graduates with growing companies. WCC
interns get the work experience needed recruited students to Tech Trek’s Student
to bridge the gap between school and Trek as well as Tech Homecoming. Also, with
“the real world.” SPARK’s support, WCC was awarded a $10
million grant to create new robotics, automation,
MOLLY MCFARLAND
Co-founder, AdAdapted cybersecurity, and mobility programs.private SPARK SERVICES AT-A-GLANCE
# 4 Ann Arbor ENTREPRENEURIAL SERVICES
Located on the third floor of SPARK Central, RXA — an advanced Affordable office space for startups
THE 10 BEST PLACES
analytics and artificial intelligence company — established Weave Entrepreneur Boot Camp
TO LIVE IF YOU
WORK FROM HOME Expert counsel to entrepreneurs
Workforce LLC, its first studio company. RXA also expanded its Access to funding opportunities
MONEY.COM
team through the acquisition of Salt Lake City-based Yapa Group. 2020 Educational & networking events
BUSINESS DEVELOPMENT
In 2020, SPARK Central graduate SkySpecs raised a $17 million
6
Local business expansion
Series C and fellow graduate AdAdapted raised a $2 million
Series A round. Early-stage startup PocketNest, a current
# Ann Arbor
BEST CITIES TO
LIVE IN AMERICA
Business attraction
Business introductions & referrals
NICHE.COM Site search and selection
SPARK Central client, attracted $750,000 in capital. 2021
Incentive support
Talent services
Expanding on the footprint it established in the region in 2017, Wacker MARKETING
Chemical broke ground on its new $51 million research and product development Promoting company successes
center in Pittsfield Township. SPARK worked with the company, the Michigan Amplifying visibility of the best & brightest
Supporting the needs of startups
Economic Development Corporation, and Pittsfield Township on the project. Publicizing the region to a global audience
public our team
In partnership with the Michigan Small Business Development Center, Ann Arbor
SPARK provided $50,000 business accelerator grants to Bedestrian, Esperovax,
and Orange Grove Bio to further development of innovative technologies in
response to COVID.
Ann Arbor SPARK administered the Pittsfield Township Small Business Grant
program, which awarded $50,000 to 20 businesses experiencing COVID-related
financial hardship. The funding provided $2,500 grants to small businesses.
SPARK convened a grant application review committee and managed the
distribution of funding.
Ann Arbor SPARK, the City of Brighton, and the Brighton Downtown Development
Authority teamed up to use a federal grant to create the Main Street Showcase,
a new community mobile app that connects visitors and residents to the city’s
restaurants, retailers, and service establishments.David Parsigian (Chair) Mara M. Farmer Mark LePage, MD, MBA Kelly Sexton
Co-Managing Partner Senior Vice President / CEO Associate VP for Research
Honigman LLP Regional Manager, Integrated Health Associates University of Michigan
PNC-Certified Women’s (IHA) Office of Tech Transfer
David Ruud (Vice Chair) Business Advocate
Senior Vice President &
The PNC Financial Services
Lon Lowen Sue Shink
Chief Financial Officer Associate Vice President, Commissioner
Group, Inc.
DTE Energy Engineering Washtenaw County
Tiffany Ford NETSCOUT
David Snodgrass (Treasurer) Christine Sing
President & CEO
President & CEO
University of Michigan
Timothy G. Marshall Principal
Lake Trust Credit Union President & CEO Rehmann
Credit Union
Bank of Ann Arbor
Dr. Rose Bellanca (Secretary) Brenda Stumbo
Leigh R. Greden
President John McLaughlin Supervisor
Attorney & Advisor to the
Washtenaw Community College Senior Director, Ann Arbor Ypsilanti Township
President
Site Leader
Cynthia Wilbanks (Past Chair) Eastern Michigan University
KLA Corporation
Mickey Swortzel
VP, Government Relations CFO/COO
Mandy Grewal, Ph.D.
University of Michigan Tim Petersen New Eagle
Supervisor
Managing Partner
Mike Archinal Pittsfield Charter Township
Arboretum Ventures
Matthew VanBesien
Township Manager President, University
Jeff Hauptman
Genoa Township Venkat (DV) Rao Musical Society
CEO
Senior VP, Strategy University of Michigan
Tom Crawford Oxford Companies
Consumers Energy
City Administrator Christina York
Brian Kelly
Ann Arbor Joanne Rau CEO
Entrepreneur-in-Residence
President SpellBound
Gregory Dill Paul Krutko Chelsea State Bank
County Administrator Robert Young
President & CEO
Washtenaw County
Ann Arbor SPARK
Paul Roney Group VP, Purchasing,
President Toyota Technical Center
Domino’s Farms Toyota Motor North America
SPARK will advance the economy of the Ann Arbor region as a desired place for innovation,
business location and growth, and for talented people to live and work. The Ann Arbor region will
be recognized for our academic, business and community resources, and our collaborative culture.
www.AnnArborUSA.org
330 E. Liberty St., Ann Arbor, Michigan 48104 • 734-761-9317You can also read
