The Midwest Innovation Ecosystem 2026 (Dealroom)

Summary

• The 12 Midwest states had a combined GDP of about $4.7 trillion in 2024, 16% of US GDP.p.2
• From 2021 to 2025, Midwest companies raised $58.2 billion of tech VC, a 4.9% share of US tech VC.p.3
• Midwest startups are worth $682 billion, up 4.6x since 2016, when combined enterprise value was $148 billion.p.4
• 124 Midwest companies have reached a $1B valuation, 52 of them in the last five years.p.5
• Of the 4,001 Midwest startups in the 2010-2019 cohort, 1.2% reached a $1B valuation, versus 3% in the Northeast.p.7
• Health, fintech and enterprise software hold 64% of Midwest startup value.p.8
• Illinois holds 40% of Midwest startup value, while Michigan grew 9.7x to $101 billion and Wisconsin 7x to $41.1 billion since 2016.p.9

Key insights

1. The Midwest ranks fourth of five US regions by startup value.p.6
2. Illinois has $276 billion of startup value and 55 companies valued at $1B or more.p.10
3. Ann Arbor raises the most venture capital per resident among Midwest hubs at $4,734, compared with $64,230 in the Bay Area.p.11
4. Former Groupon employees have founded 30 VC-backed startups.p.13
5. 71% of the founders of Midwest $1B+ companies are American.p.15
6. The University of Michigan educated the most founders of Midwest $1B+ companies, with 13.p.16
7. NEA and Insight Partners each backed 10 Midwest $1B+ companies.p.18