Idea: Invest up to $1M each in the best startups and manufacturers that move to Detroit.
- Create a $5M+ per year fund sponsored by the City, State, and/or nonprofits.
Think: 43North for Detroit
- 43North invests $5M per year in startups that move to Buffalo.
- Create thousands of jobs in Detroit.
- Manufacture critical supplies in America close to where they’re needed most.
Case Study: 43North
43North invests $5M per year in startups that move their CEO and 50%+ of their staff to Buffalo, NY.
- Since 2014, 43North has invested $35 million total in 59 startups.
Here’s the story of 43North’s best investment yet — ACV Auctions:
In 2015, ACV Auctions won 43North’s startup competition.
- Their prize? A $1 million investment for 5% of their company.
- That’s a $20M valuation.
ACV is now a public company and is Buffalo’s first unicorn with a $1.8B+ market cap.
- ACV employs 1,150+ people (with 400+ in Buffalo) and is still headquartered in Buffalo.
43North got a huge return on its ACV investment:
- When ACV IPOed at $25/share in 2021, 43North’s 3,014,820 shares were worth $75,370,500.
- That’s enough to >2x their entire $35M fund by itself.
And ACV is not 43North’s only success story:
- 43North’s 59 portfolio companies now have a combined value of over $4.4B.
43North will go down in history as one of the best government funding programs ever.
- In a time when governments compete to give away billions in incentives to the largest corporations, we need more 43Norths.
We need one of these public accelerators in every American industrial city.
- Each of these investments pays for itself and creates thousands of jobs!
- These accelerators also manufacture solutions to the World’s Biggest Problems!
I want to create the 43North for Detroit!
- DM me @neilthanedar or reply to this thread to connect with me about this idea!
- Please share this 43North for Detroit post with people who can help us make this happen!
This idea is a work-in-progress. If you’d like to riff on it, hit me up @neilthanedar on Twitter.