Groupon cofounder: Detroit has entrepreneurial mojo, too

Brad Keywell, a metro Detroiter and University of Michigan grad who hit the entrepreneurial jackpot as cofounder of Groupon after migrating to Chicago, sees no reason why Detroit and Michigan can't spawn explosive new growth companies too.

"Where Detroit is, literally, you're watching it happening now," Keywell said in an interview following a luncheon speech Tuesday at the 34th annual Michigan Growth Capital Symposium in Ypsilanti.

Asked about burgeoning growth and startup culture led by Quicken Loans chairman Dan Gilbert in downtown and midtown Detroit, Keywell said, "This is what it looks like when entrepreneurship starts to become a valued, relevant part of a community. What Dan has introduced to this part of the world is a much-needed dose of entrepreneurship. The question now is, 'what's next?'

"Do others come out of Dan's world and start their own things," Keywell added, "or do other sources of capital come to the community that have their own areas of focus, that unleash a whole new breed of entrepreneurs? Or maybe there is something unique to be created here ... But I think the ingredients of capital, climate, risk-accepting entrepreneurs, a lot of those things are happening before our eyes. So I admired Dan deeply for his passion and what it's created. It matters, a lot."

Keywell, 45, has his eyes on more than just Gilbert's downtown Detroit play in Michigan, though. In addition to cofounding Groupon and the Lightbank venture capital firm in Chicago with fellow U-M grad Eric Lefkosky, Keywell has recently launched another startup called Uptake Technologies, which he said Tuesday "is now my fulltime job,"

Uptake provides analytics software to handle the massive amount of data generated by sensors in the machinery and equipment of the world's major corporations. Uptake has already publicly enlisted Peoria-based Caterpillar as an investor and partner, and Keywell makes no secret of the fact these he sees huge potential in partnering with automakers and other Michigan companies.

"It's extraordinarily exciting," he said. "Look at the state of Michigan and the iconic industry-leading companies there. Who is partnering with them to unlock the unique entrepreneurial opportunities?"

While not directly involved in a major way yet with the auto industry, Keywell sees tremendous change on the horizon as technology and new entrepreneurial players shake up the industry.

"I'm friends with some of the guys on the board of Tesla and I know the guys at Google," he said, "and they're approaching a great industry with their uniquely disruptive eyes and what we're seeing is the result of a disruptive approach to a really interesting, iconic industry.

"So i think the mandate for the other major auto companies is to hopefully find their entrepreneurial blood, which was how they started."

In his luncheon speech, Keywell addressed the role of geography in entrepreneurship, noting that his current hometown of Chicago didn't have many advantages over Michigan as a haven for startups. When invited by former Illinois Gov. Pat Quinn to start up an Illinois Innovation Council, Keywell declined -- until Quinn agreed to his conditions of meetings no more than one hour long, and an insistence "that we do stuff," he said.

Addressing the question of "Why does Silicon Valley Work so well?," Keywell rattled off a few key ingredients that both Michigan and Chicago happen to have -- a great university or universities, some big companies and capital to invest. But what's critical among all of those assets is a mindset focused on connectivity -- and a willingness to seek out and embrace risk-takers.

Ultimately, it's about an attitude that says to the bold, passionate innovator with a risky idea, "You will not be vilified if you fail."

Instead, the the right question for someone whose startup has just failed should be, "OK, what are you going to do next?"

Contact Tom Walsh: twalsh@freepress.com, also follow him on Twitter @TomWalsh_freep.