Midwestern United States
Country region · United States · Pop. 69.6M · #16 region by EV
Online edition
State of the Midwest Innovation Ecosystem 2026
The report Dealroom published with StartMidwest in April 2026, with the figures updated to October 2026.
* C→Unicorn and Unicorn→Decacorn rates are derived from current counts (no founding-cohort data); the four mid-funnel rates use Dealroom's cohort tracking.
Economy
The Midwest produces 16% of US GDP and raises 4.9% of its tech venture capital
The 12 Midwest states had a combined GDP of about $4.7 trillion in 2024, close to Germany's. From 2021 to 2025, Midwest companies raised $58.2B of tech venture capital, 4.9% of the US total.
GDP, 2024
US$ trillions
Source: BEA, IMF World Economic Outlook. Midwest = the 12 Census Bureau states.
Midwest share of US tech venture capital
By year of the round
Source: Dealroom.co, October 2026. Verified tech VC rounds by company HQ.
Enterprise value
Midwest startups are worth $682B, up 4.6× since 2016
Combined enterprise value rose from $148B in 2016 to $682B in 2026, 16.5% a year. 52 of the 124 Midwest companies that have reached a $1B valuation did so in the last five years.
Combined enterprise value
2012–2026, year-end values (2026 to date)
Source: Dealroom.co, October 2026. VC-backed companies founded since 1990 in or headquartered in the Midwest.
Companies that have reached a $1B valuation
Cumulative, by the year a company was first valued at $1B or more
Source: Dealroom.co, October 2026. Includes companies since acquired or listed.
US regions
The Midwest ranks fourth of five US regions by startup value
Of the Midwest startups founded 2010–2019 that raised $100K+, 18.4% went on to raise $15M and 1.2% reached a $1B valuation, the lowest share of the five regions. In the Northeast the shares are 26.5% and 3%.
Combined enterprise value by US region
2012–2026, Bay Area excluded
Source: Dealroom.co, October 2026. *West Coast excluding the Bay Area. Companies founded in or headquartered in each region.
How the regions compare
Value and growth; and of the startups founded 2010–2019 that raised $100K+, the share that reached each milestone
| Region | Enterprise value, 2026 | Reached $1B |
|---|---|---|
| West Coast (excl. Bay Area) | $6.6T | 2.5% |
| Northeast | $3.7T | 3% |
| Southeast | $1.5T | 1.7% |
| Midwest | $682B | 1.2% |
| Mountain West | $463B | 2.7% |
Source: Dealroom.co, October 2026. Midwest cohort: 4,001 startups.
Sectors
Health, fintech and enterprise software hold 64% of Midwest startup value
Health is the largest Midwest industry by number of startups and by value: 1,727 funded startups worth $220B.
Midwest startups by industry
Startups raised $100K+, breakouts $15M+, scaleups $100M+; $1B+ = reached a $1B valuation
| Industry | Startups | $1B+ | Enterprise value |
|---|---|---|---|
| Health | 1,727 | 29 | $220B |
| Fintech | 699 | 29 | $169B |
| Enterprise software | 821 | 31 | $114B |
| Transportation | 318 | 11 | $55.1B |
| Marketing | 449 | 7 | $32.6B |
| Energy | 453 | 6 | $29.5B |
| Food | 509 | 3 | $21.9B |
| Security | 210 | 6 | $21.1B |
| Real estate | 216 | 5 | $18.2B |
| Telecom | 119 | 3 | $15.3B |
| Media | 296 | 1 | $10.5B |
| Legal | 126 | 1 | $9.9B |
Source: Dealroom.co, October 2026. Operating companies founded since 1990, in or headquartered in the Midwest. A company can sit in more than one industry.
States
Illinois holds 40% of Midwest startup value; Michigan and Wisconsin grew fastest
Illinois startups are worth $276B. Since 2016, Michigan grew 9.7× to $101B and Wisconsin grew 7× to $41.1B.
Combined enterprise value by state
Six largest states, 2012–2026
Source: Dealroom.co, October 2026.
All 12 states
$1B+ = companies that have reached a $1B valuation; most valuable by latest valuation
| State | Enterprise value | $1B+ |
|---|---|---|
| IllinoisHorizon Therapeutics* $27.8B, Citadel Securities* $22B, Miro* $17.5B | $276B | 55 |
| MichiganAcrisure $32B, Lineage $19B, OneStream $6.4B | $101B | 12 |
| OhioWorldPay $24.3B, Sotera Health $5.2B, Erebor $4.3B | $93.5B | 19 |
| MinnesotaLife Time Fitness $8.5B, Arctic Wolf Networks $4.3B, Celcuity $3.9B | $69.2B | 14 |
| WisconsinExact Sciences $23B, Clarios $13.2B, Fetch Rewards $2.5B | $41.1B | 4 |
| IndianaMetronet $4.9B, MBX Biosciences $2.8B, ExactTarget $2.5B | $35.3B | 5 |
| MissouriEquipmentShare $6.4B, Lumeris $1.3B, PPS Analytics $1.2B | $32.2B | 7 |
| IowaWorkiva $3.8B, Summit Carbon Solutions $1.1B | $16.8B | 2 |
| KansasNIC $2.3B, Astron Aerospace $1B | $9.7B | 2 |
| NebraskaTransFirst $2.4B, CompanyCam $2B | $6.5B | 2 |
| South DakotaBitGo $973M | $1.8B | 1 |
| North DakotaAldevron $9.6B | $1.1B | 1 |
Source: Dealroom.co, October 2026. *Founded in the state, headquartered elsewhere. Growth shown for states with $1B+ of startup value in 2016. Acquired and listed companies at their latest valuation.
Startup hubs
Ann Arbor raises the most venture capital per resident in the Midwest
From 2021 to 2025, Ann Arbor raised $4,734 of tech VC per resident and Chicago $1,640. Boston raised $19,617.
Tech venture capital per resident
Total raised 2021–2025, divided by metro population. Both lists share one scale; the Bay Area ($64,230) is off it.
US benchmarks
Midwest hubs
Source: Dealroom.co, October 2026. Verified tech VC rounds by company HQ.
Midwest startup hubs and their strongest sectors
From the Dealroom × StartMidwest report
Source: Dealroom.co, April 2026.
Founders
Former Groupon employees have founded 30 VC-backed startups
Groupon alumni have started more funded companies than the staff of any other Midwest $1B+ company. 71% of the founders of Midwest $1B+ companies are American; the University of Michigan educated more of them than any other university.
Startups founded by former employees
Of Midwest $1B+ companies; VC-backed startups that raised $1M+
Source: Dealroom.co, April 2026.
Where the founders of Midwest $1B+ companies studied
Founders per university; Midwest universities in blue
255 universities in total. Source: Dealroom.co, April 2026.
The largest companies founded by Groupon alumni
Latest valuation or total funding
- ChronosphereUS$3.4B
- LinearUS$1.3B
- KiteUS$1.2B
- JOKREurope$800M
- JüstoLatin America$760M
- MossEurope$550M
- PinwheelUS$500M
- AspireAsia$500M
- Patient21Europe$420M
- VedraiEurope$264M
- Turquoise HealthUS$240M
- PSQUAREDEurope$220M
More than 100 companies on six continents, worth $15B+ combined. Source: Dealroom.co, April 2026.
Where the founders of Midwest $1B+ companies come from
Country of origin
Source: Dealroom.co, April 2026.
Where Midwest startup founders worked before
Previous employers of 841 Midwest startup founders. Both lists share one scale.
Large tech companies
Midwest companies
Source: Dealroom.co, April 2026.
Investors
NEA and Insight Partners each backed 10 Midwest $1B+ companies
Most of the investors behind Midwest $1B+ companies are national funds. Lightbank, Pritzker Group, Hyde Park Venture Partners and Chicago Ventures are the Chicago firms among the most frequent backers.
Investors in the most Midwest $1B+ companies
Number of Midwest $1B+ companies backed; Midwest firms in blue
Investors by number of Midwest $1B+ companies in their portfolio. Source: Dealroom.co, April 2026.
Quarterly report
Midwestern United States's latest quarter in venture capital
VC raised by Midwestern United States-headquartered companies in the quarter shown, against the quarter before and the same quarter a year earlier.
Latest complete quarter
Loading VC raised by Midwestern United States-headquartered companies…
Largest rounds
Largest funding rounds in Midwestern United States
A live treemap of the largest VC rounds. Each cell is one round into Midwestern United States-headquartered companies, grouped by Dealroom sector.
Largest rounds in Midwestern United States - 2026
VC investment
How much venture capital flows into Midwestern United States
VC investment into Midwestern United States-headquartered, VC-backed companies, broken down by round size, company location, sector and funding stage.
Academia
Midwestern United States's academic flywheel
Companies founded by university alumni or spun out of research, plus the institutions producing the most founders tied to Midwestern United States.
Location comparison
How Midwestern United States stacks up
Compare Midwestern United States with peers from the same country (United States) — switch between combined EV, EV growth, and a growth × size view. Expand the table for the full ranking.
Combined enterprise value of each ecosystem.
Top regions in United States ranked by combined EV. Midwestern United States's row is highlighted (#10).
| # | Ecosystem | Combined EV | EV growth | Unicorns | VC invested | Tracked startups |
|---|---|---|---|---|---|---|
| 1 | California | $21.6T | 7.7× | 1,138 | $179B | 37K |
| 2 | Western United States (Pacific, excl. Bay Area) | $4.5T | 4.8× | 328 | $29.9B | 16.6K |
| 3 | Northeastern United States | $3.3T | 4.5× | 650 | $53.1B | 31.3K |
| 4 | Washington (State) | $2.9T | 4.5× | 75 | $7.5B | 3,270 |
| 5 | Texas | $2.7T | 10.5× | 139 | $11.4B | 6,785 |
| 6 | Southeastern United States | $1.4T | 4.8× | 191 | $11.8B | 14.5K |
| 7 | New York State | $1.4T | 5.1× | 300 | $31.1B | 15.8K |
| 8 | Massachusetts | $1.1T | 4.4× | 209 | $12.9B | 6,135 |
| 9 | Florida | $798B | 9.8× | 67 | $4.1B | 4,904 |
| 10 | Midwestern United States | $668B | 3.7× | 124 | $9.5B | 10.8K |
| 11 | Western United States (Mountain) | $403B | 4.4× | 112 | $10.2B | 5,588 |
| 12 | Illinois | $270B | 3.6× | 55 | $2.3B | 3,158 |
More data
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