The Motor City is for hardcore entrepreneurs.
Where I live in the Bay Area, there's a certain glamour to Detroit. It's the heart of what Bruce Sterling termed "dark euphoria." "Dark Euphoria is what the twenty-teens feels like," Sterling said. "Things are just falling apart, you can't believe the possibilities, it's like anything is possible, but you never realized you're going to have to dread it so much."
Detroit is the place where Bay Area types imagine an urban tabula rasa, a place where enough has gone away that the problems of stuffing millions of people into a small region can be reimagined, redesigned, remade.
So, when we arrived in Detroit, I was excited to see what was actually happening on the ground, to see what was there outside the square frames of Instagram.
Anywhere you go in Michigan, people tell you about the Madison Building. Down by the Tigers' new stadium and the Detroit Opera House, extremely successful local businessman Dan Gilbert bought and rehabbed a gorgeous old building. The roof is so nice and fancy that you can rent it out for a wedding reception and relax in chairs that cost more than many houses in the metro area.
But the real attraction of the building, for us, was that it's the home of Detroit Venture Partners, the startup hub of the area. DVP is run by Josh Linkner, a Detroit native who founded and eventually sold ePrize, an online promotions platform. It's on the same floor as the formerly futuristic Detroit People Mover, a monorail which loops endlessly around the still mostly deserted downtown.
Linkner's office space contains his own portfolio companies as well as those of Bizdom, an accelerator that's also funded by Dan Gilbert. There's no doubt about it, as Linkner put it, "We're the dominant early stage tech VC in this region."
DVP is a traditional venture firm in the sense that they invest in digital-only companies that are trying to make something big out of what a few kids in a room can build. An old friend of mine from college, Jay Gierak, is one of them. HIs company Stik is like an Angie's List for lawyers, realtors, and other professional services. He and his cofounder Nathan Labenz recently moved their company from the Bay to Detroit, where Gierak grew up, and received $2.5 million from DVP. In press coverage of the funding, the company's move to Motown got more attention than the money did.
People want to be excited for Detroit. They want Clint Eastwood and Eminem to be right. They want grit to count for something in today's economy. Linkner, for his part, is sure that it does. "I'll put a Detroit entrepreneur up against anyone from the coasts and I think we'd kick their ass," he tell us. He quotes the Chrysler commercial, "The hottest fire makes the strongest steel."