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by danso 4724 days ago
There's not a lot of substance in the OP to back the claim "its Tech Community Is Going Strong"...and a lot of the individual assumptions/assertions made by the OP are kind of strange...

> By some estimates, the city owes as much as $20 billion. But the news is unlikely to halt the growth of Detroit's burgeoning tech scene, according to some of its entrepreneurs.

"according to some of its entrepreneurs"....if this is in the lede, I think it's safe to assume that the reporter isn't going to look at the big picture (i.e. the relative size of the tech startup boom compared to Detroit's job sector in general)...

> "We are the Facebook or the Twitter of the area," Gierak says. "We can get unbelievably good people who are extremely talented and think we're the coolest job in town, as opposed to being the 550th coolest job in town back in San Francisco."

I haven't been in the SF job market...but is the allure of being "Employee #single-digit" enough to outweigh a higher-paying job in a more amenable city?

> Neverthless, the tech scene in Detroit does face challenges. The most recent Census data shows Detroit has just 11,000 young professionals between 25 and 34 who hold at least a bachelor's degree, compared to Chicago's 250,000. Michigan is one of four states that had fewer young professionals in 2011 than it did in 2006.

"...does face challenges"...that's quite the buried understatement. Detroit has a relatively tiny pool of young professionals...at the same time, tech jobs seem to still be in hot demand in nearby Chicago. It's definitely possible that Midwest professionals would like the choice of staying in the Midwest, but how likely is it they'll pick Detroit over Chicago?

This is not to counter the actual achievements of the Stik team, but it's unlikely the tech scene -- especially with startups focused on online remote services -- will have much factor at all in reversing Detroit's deterioration. Not through any fault of their own, but because of the sheer size of local revitalization needed.

4 comments

I can really only think of one good reason to pick another Midwest city over Chicago: tech culture. Many of these startups here in Chicago seem to lack strong technical co-founders.

A significant minority of startups in Chicago just feel like a grind to get an exit and as a developer you're basically given the minimal amount of resources and asked to work the maximum amount of time achieve that goal. All the while some dude (it's usually a dude) is breathing down your neck asking you why isn't their vaguely specified, poorly thought-out product done yet- "Shouldn't this just be a simple 'if' statement?" (An 'if' statement! Of course! Thanks for being my muse, boss.)

You see a lot of entrepreneurs here who come from big consulting groups that don't really "get" tech and barely even grasp startups. They're kinda like tourists - they know there's a ton of opportunity in the sector, they're willing to take the risk to capitalize on it, but there's no real passion for technology. If it all goes bust they'll just go back to their old job at Accenture or wherever and use their brief foray as an entrepreneur as a feather in their cap as they climb the corporate ladder.

The effect of all this is that it tends to drive more technically-minded entrepreneurs or more hardcore dedicated biz types to take their businesses outside the city to places like SF, Austin and NYC. It also prevents us from drawing in people from Wisconsin and Michigan. What we're left with are a bunch of suits trying to bro-it-up with a startup until they finally surrender the last of their adolescence and go back to working for someone else.

and...Whew, rant over. That's the only reason I can think of why you'd do something in Detroit instead of Chicago.

Can you email me? I'm from Chicago but live in SF and might consider going back. Address in profile
I think the biggest appeal of Detroit right now is that the people going there are trying to be a part of something bigger. They're trying to revitalize and reinvent a once great city. And it's working. Detroit is a hell of a lot nicer now than it was 5 years ago.

You might think that the tech sector can't do enough to turn the city around, but I disagree. This isn't just a collection of random startups. There are tech giants like Microsoft, Twitter, Google, and Amazon who are already in the area or looking to be. Quicken Loans (Intuit) is the biggest tech employer downtown and Dan Gilbert is doing everything he can to make the city more amenable to other tech companies.

And the auto industry? That's still there. It'll never be the blue collar manufacturing boomtown it was, but all the auto companies will continue hiring engineers. Both auto and software.

Quicken Loans is nothing to do with Intuit beyond using the name 'Quicken'. They're not an Intuit company. They're certainly pretty strong on their own, but the name is the only relationship.
Ahh you're right. I had read that Intuit bought Quicken Loans, but I guess I never read that Dan Gilbert bought Quicken Loans back from them.
I moved from NYC to Cleveland for a couple years and was shocked at the untapped potential. Just east of downtown, for example, is a warehouse area the size of several Brooklyn neighborhoods that's at least half empty and crying out to be invaded by artists. Rent can be as low as $3.50/sf/yr.

Over time I came to think that part of the problem is that Cleveland lacks the 'being a part of something bigger' you refer to.

I'll say this for Detroit - they're actually making things happen. I hope Cleveland gets some of the same mojo. There are definitely cool people in Cleveland up to good things, but there's not a movement afoot yet.

As far as I can tell Cleveland has the exact same mojo as Detroit. There's only so much you can do, though, and there's only so fast these sort of improvements can happen, especially when you're a city that the butt end of too many jokes to count.

Source: Lived in cleveland area for 28 years of my life - every year more and more of the rundown areas of the city were being gentrified and being replaced by trendy restaurants and rented out by whatever 'hipster' / artist population the city has around.

It never fails to amaze me how many gigantic companies are still headquartered (or have a major presence) in and around Detroit. Despite Detroit proper being a famous mess for decades, the greater Detroit area seems to be doing very well.

If bankruptcy is whats needed to turn city politics around and fix the basics, so be it. I hope it does work, because in my experience, Detroit is a fantastic, gritty, historical city with character like none other.

>> It's definitely possible that Midwest professionals would like the choice of staying in the Midwest, but how likely is it they'll pick Detroit over Chicago?

Forget about Chicago - why would anyone pick Detroit over, nearby Ann Arbor?

Seriously, can anyone in the Ann Arbor area speak up on this? My family and I have been mulling over a move from North Jersey back to MI for a while, and I know there is a tech scene there, but what's it like?
I'm from Ann Arbor and have lived in New York. The tech scene in Ann Arbor is quite strong, especially considering its only a town of 110k or so. Most of our startups and incubators are centered around the university, so I would recommend at least living close by. Its an amazing place to grow up or start a family in too.
Totally. You can tell that just from walking around. We were out there over the 4th weekend and I could definitely see raising the family there. My tech network is pretty much non-existent out there though (for now).
Why the move from Jersey? I'm in Jersey myself, just wondering why you want to relocate!
It's mostly a family thing. Neither me nor my wife are originally from here, we moved up for a gig that I don't have any more. If we hadn't bought a house at the top of the bubble we'd probably have split already. That said, I really love our house and where we live (Stillwater), it just feels kinda lonely on the family front now that we have our own kids.
Shorter commute to West Bloomfield? /s
I lived in Chicago area for almost a decade and was happy to leave. But I'd live there again in a heartbeat compared to Detroit.