For twenty years Ann Arbor SPARK has been at the forefront of economic growth for the Ann Arbor region. But they’re not like other Economic Development Organizations. With a true commitment to the community and a laser-like focus on early-stage startups, Ann Arbor SPARK is helping transform Southeast Michigan into one of the nation’s top emerging tech hubs.
As a nonprofit economic development organization, Ann Arbor SPARK leverages strategic partnerships to get funding through public sources, academic institutions, and private contributions. As part of SPARK’s annual contract with the Ann Arbor/Ypsilanti SmartZone, SPARK receives funding from the state of Michigan to help support startups and innovation in Washtenaw and Livingston Counties.
Since its founding, SPARK has assisted 600 company growth projects that have spurred $3 billion in new investment commitments, 22,000 new jobs, and the retention of 30,000 jobs. Over 1,349 startups have been assisted with intensive services from SPARK. And in 2023 alone, SPARK invested $1 million into 13 companies through SPARK Capital, served 231 companies, facilitated 11 teams through its bootcamp, and so much more.
“What really sets Ann Arbor SPARK apart is having focused, intensive work with early-stage tech companies,” says Phil Santer, Chief of Staff at Ann Arbor SPARK.
During Phil’s twelve years at SPARK, he has led the business development team, focused on helping more mature businesses expand into Ann Arbor. He says that having that understanding of how organizations grow and develop over time gives SPARK a “powerful one-two punch.”
Services that Spark Growth
In addition to supporting early-stage tech companies, Ann Arbor SPARK provides a wide array of services.
For companies that are just starting out, SPARK supports entrepreneurs with consultants who help with go-to-market strategies, branding, patent attorneys, and other services that might be needed.
“We want to help financially support entrepreneurs and remove barriers for them,” says Phil.
SPARK also offers an Entrepreneur-In-Residence program that helps an executive get more experience working with companies. Additionally, its Entrepreneur Boot Camp helps guide small teams through the process of customer discovery and develop a path forward.
From providing expertise to securing office space, Ann Arbor SPARK is an invaluable resource for early- and growth-stage companies alike.
“We try to act as a concierge for companies coming to town,” says Phil. A few major tech companies that have recently expanded into Ann Arbor with the help of SPARK include KLA, Sartorius, and Wacker Chemical.
As economic organizations well know, having great talent is a critical part of the growth equation. To help connect these new job opportunities to top talent, SPARK has an active job board and supports additional talent programs through its university partnerships. The Digital Engagement Center at Eastern Michigan University hosts a summer internship program in partnership with SPARK to expose students to great working opportunities at the companies SPARK supports.
While the organization invests heavily in startups and tech companies, it’s a common misconception that these services are exclusively for tech businesses.
“SPARK is often pigeonholed to startup services, but we’re expanding our model and working with more types of companies,” says Phil. For example, SPARK was recently awarded a $3 million grant to provide services to non-tech companies.
The virtuous cycle of economic growth
What makes the work of Ann Arbor SPARK so impactful is not all of the individual services they provide. Instead, it’s the collective impact their work has on the community.
“We focus on helping create a strong and dynamic business community that then supports the people in the greater Ann Arbor community,” says Phil, who calls it a “virtuous cycle.”
In a nutshell, as businesses grow in Ann Arbor and beyond, the people who are employed at the business then participate in the local economy. Businesses pay taxes that support the community, and in many cases, it begins a talent flywheel of innovation and growth.
One example of this is Groundspeed, an Ann Arbor tech company that went through the full business lifecycle at SPARK. The company was started in 2015 and its founders went through the Entrepreneur Boot Camp. Additionally, they received a $10,000 grant through the entrepreneur services team to help build out their logo and branding. They also received an investment through the Michigan Angel Fund, which is managed by SPARK. In the beginning, the team worked out of the incubator/co-working office space, and once it outgrew that, they took a suite available in the SPARK building. As the company grew, they participated in events like a2Tech360’s Tech Trek and Tech Homecoming. Eventually, the company had an exit.
Going through the full range of SPARK services, Groundspeed is just one example of how SPARK has played a key role in helping businesses find success and grow in Ann Arbor.
Additionally, in the case of Groundspeed and other companies like Duo Security or even Pfizer, the talent that has been nurtured at these successful companies often go on to start their own, continuing the flywheel of innovation and entrepreneurship.
As SPARK continues to help grow the region as a top hub for entrepreneurship and innovation, Phil says that the organization is also thinking about how to tackle broader challenges, like the high cost of child care, for example. Ann Arbor SPARK engages in these issues because they play a vital role in addressing key challenges that impact talent attraction, retention, and overall business growth. By supporting these efforts, we help create a stronger, more inclusive economy that benefits both employers and employees.
“We want to play a key role in some of these broader challenges that affect the overall growth of our community,” Phil says, “because we always want to provide support for the business community.”
To learn more about SPARK’s services, check out their website. Also mark your calendars for SPARK’s annual a2Tech360 event. See the event schedule and get registered now.
