Fundraising Q2, 2025: Michigan

Michigan’s startup fundraising landscape saw a dramatic surge in the second quarter of 2025, with total capital raised hitting a remarkable $2.2 billion according to data from Dealroom. The total marks a 3.7x increase from the $562 million generated in the first quarter of the year, and an eye-watering 12.7x rise compared to the $165 million raised in Q2 of 2024.

At first glance, these numbers would suggest a booming startup ecosystem across the state, ready to compete with California.

Unfortunately, that’s not quite the case. Yet.

Firstly, Californian-based businesses raised $25.6B over the same period. 

Second, the lion’s share of this capital influx is dominated by a single player - Acrisure - a Grand Rapids-based insurance platform that secured $2.1 billion. The amount consisted of new convertible senior preferred stock, and was led by investment giant Bain Capital, highlighting the significant institutional interest in the business.

To put Acrisure’s raise into perspective, the second-largest round of the quarter in Michigan was Optilogic’s $40 million financing, a figure that pales in comparison. Akadeum followed with a $20 million raise, making clear the extent to which Acrisure’s deal dwarfed the rest of the local startup funding scene.

The outsized contribution from Acrisure even led Dealroom -  the data intelligence platform focused on startup ecosystems upon which we rely for our data - to anoint Grand Rapids as ‘the most entrepreneurial’ city in the Midwest for the quarter.

The designation, while encouraging in terms of visibility and recognition for the region, is indeed skewed by the singular success of this one company rather than reflecting a broad-based surge in entrepreneurial activity across Michigan and the wider Midwest.

And yet, most people in Michigan would agree such a surge does exist.

While this colossal funding round underscores Acrisure’s potential and a robust appetite from major investors for the right businesses - no matter where they're based - it also casts a spotlight on the broader Michigan startup ecosystem’s challenges in scaling similar levels of investment independently.

The disparity prompts important conversations about diversification and the nurturing of a wider range of innovative ventures to attract more capital to the state.

In summary, Michigan’s Q2 2025 startup fundraising headline figure dazzles but is largely a reflection of significant capital for Acrisure. It should nonetheless encourage all stakeholders to consider how to translate such success stories into more widespread success across the ecosystem, and further strengthen Michigan’s entrepreneurial landscape.