Michigan Innovation Fund Program

The Michigan Strategic Fund (MSF), in partnership with the Michigan Economic Development Corporation (MEDC), is announcing a new funding opportunity under the Michigan Innovation Fund (MIF).

 

Detailed Legislative Background

The Michigan Innovation Fund was established under Public Act 190 of 2024, amending the Michigan Strategic Fund Act. Signed into law by Governor Whitmer on January 13, 2025, and formally effective April 2, 2025, this statute authorizes the MSF to deploy capital, including evergreen venture fund support and targeted grant funding, to bolster Michigan’s startup ecosystem and entrepreneurial infrastructure.

Passed as a bipartisan package through House Bills 5651, 5652, and 5653, this legislation redirected early returns from Venture Michigan Funds I & II into the newly created Michigan Innovation Fund through the 21st Century Jobs Trust Fund. The bills were structured to leverage existing MEDC and MSF funding mechanisms, addressing critical known gaps in Michigan’s innovation ecosystem.

Review the full Michigan Innovation Fund statute here: Act No. 190, Public Acts of 2024.

The Opportunity

The $60 million Michigan Innovation Fund marks the state’s boldest investment in Michigan entrepreneurs and innovators in more than two decades. Created through a collaborative statewide effort involving entrepreneurs, investors, legislators, and innovation leaders, the fund is designed to strategically invest taxpayer dollars into driving high-impact statewide economic growth and ensuring Michigan’s entrepreneurs have the support they need now.

Following MSF Board approval in April 2025, MEDC prioritized the rapid and responsible deployment of $52.8 million in June 2025 to eight eligible Michigan-based nonprofit venture capital funds to accelerate urgently needed investments in Michigan early-stage startups.

Now, MEDC is prepared to deploy the remaining $7.2 million through two targeted opportunities detailed below. These funds will be rapidly and responsibly invested, emphasizing support for high-quality programming with statewide economic impact.

Eligibility Criteria

Per statute, to qualify, applicants must meet both conditions below:

  1. Be a Michigan nonprofit organization or a Michigan-based higher education institution (or an affiliated foundation), exempt from federal taxation under Section 501(c)(3) or 501(c)(6) of the Internal Revenue Code. 

    AND

  2. Be a nonprofit corporation that provides programming, technical assistance, or other support that promotes the growth and development of startup companies and their founders in Michigan, or an entity that administers, manages, or operates funds that invest in startups located in this state.

Stewardship of Public Funds

These are public funds. Thus, per statute, applicants must agree to the following clear stewardship requirements:

  • No more than 25% of grant funds may be used for administrative costs and technical assistance. 
  • Annual reporting on investment activity and outcomes is required and must be made publicly available.

Funding Opportunities - Request for Applications

Michigan’s innovation ecosystem rallied together to make these Michigan Innovation Fund grants possible. While the dollars available cannot meet every current need, the opportunities below target the gaps stakeholders have highlighted could move the needle fastest and help lay a foundation for long-term innovation ecosystem development. Our goal: strategically allocate limited public resources to maximize statewide impact.

  1. Startup Support Services – $4.2 million available
    Up to $4.2 million is available to Michigan-based nonprofit organizations that provide qualified startup support services. Applicants must select one of the following categories per proposal:

    • Startup Acceleration Tracks (up to 12 awards; each $250K min / $750K max): This track supports efforts that directly accelerate the growth, market access, commercialization success, and founder development of Michigan-based startups, especially in alignment with the state’s regional industry cluster strengths. Proposals may focus on any of the following priorities:

      • First Customer Matchmaking: Programs that help Michigan startups secure their first revenue-paying customers by connecting them with clearly defined needs from enterprises, regional anchor institutions, and public agencies. Competitive proposals should outline a structured yet flexible process, from identifying real buyer “problem statements” through guiding startups into paid pilots or procurement, while offering founder-friendly support that shortens sales cycles, reduces adoption risk for the customer, and can be replicated across sectors and regions. Applicants may propose a range of mechanisms (e.g., matchmaking events, facilitated pilot sprints, standardized contracting toolkits), but must articulate how they will (1) move startups from introduction to first dollar quickly, (2) track conversions to paid contracts and follow-on revenue, and (3) share anonymized outcomes and playbooks statewide so future matches happen faster.

      • Research-to-Market Catalysts: Programs that turn high-value Michigan research into market-ready products by orchestrating cluster-focused collaboration among startups, corporations, universities, investors, and government partners. Strong proposals will spell out a repeatable pathway that lowers technical and regulatory risk while matching Michigan’s entrepreneurial capacity to its industrial strengths and innovation capacity in mobility, advanced manufacturing, health, energy, and defense. Applicants must describe how they will align incentives, embed entrepreneurial talent, secure cash or in-kind commitments from industry, and track outputs such as licenses executed, spinouts formed, paid pilots launched, and follow-on revenue or investment.

      • Founder Development: Programs offering mentorship, coaching, and professional development for startup founders. Applicants are encouraged to consider and detail how they could also support founders in geographic regions not already regularly serviced by founder support organizations, and how they will focus on key identified ecosystem gaps (e.g., helping founders with fundraising strategies and pitch decks).

      • Place-based Entrepreneurship Programs: Expansion of proven, place-based programs that help startups launch and grow. For this sub-category only, applicants must currently participate in the MEDC Gateway Representative program and historically have received limited or no tax increment revenue. 

    • E&I Ecosystem Convenings (up to 5 awards; each $50K min / $150K max): Regularly occurring regional or statewide convenings designed to facilitate targeted new-to-the-ecosystem connections (i.e., not intended to fund existing convenings unless they add an essential new element) among entrepreneurs, talent, funders, and essential ecosystem resources. Ideal proposals will outline specific plans for authentic community building events focusing on specific sectors, geographies, or stakeholder groups; a single applicant may propose multiple tracks / threads of different convening types. Preference will be given to proposals emphasizing frequent, cost-effective gatherings – an “ecosystem convening heartbeat” – over fewer high-cost events. Collaboration among organizations is encouraged, especially where more mature regional ecosystems can support emerging regional ecosystems, though one organization must serve as the lead applicant.

    • Risk Capital Ecosystem Development (up to 2 awards; each $500K max): Initiatives designed to grow Michigan’s risk capital ecosystem (e.g., angel, VC, PE, etc.) and/or talent pipeline.

    • Innovation Ecosystem Advocacy (up to 1 award; $500K max): Design, incubation, and initial launch of a nonprofit initiative dedicated to statewide innovation ecosystem advocacy, including strategy coordination / alignment, ecosystem marketing / storytelling, and policy advocacy. This initiative must be inclusive of all key ecosystem dimensions: founders, risk capital, philanthropy, universities, corporations, and government (in a non-voting / observer capacity). To ensure meaningful sustaining commitment to the initiative, no more than 25% of the award will be disbursed upfront. The remaining funds will be released once a 1:1 match – equal to the full award amount and sourced from private, non-governmental entities such as philanthropy, corporations, or nonprofit partners – is secured and verified. MEDC recognizes that securing this match may require additional time and fundraising effort, which is why a limited pre-match disbursement is permitted. 

      *For this program, “advocacy” means non-lobbying activities – e.g., ecosystem education, outreach, coordination, marketing/storytelling, and policy research. State funds may not be used, directly or indirectly, for lobbying as defined in MCL 4.415, nor may the funded organization’s primary purpose be lobbying.

  2. Statewide Startup Investment Competitions – $3 million available
    One (1) award up to $3 million will be allocated for the design, implementation, and prizes of two statewide startup investment competitions (plus regional qualifiers) that accelerate the growth of early-stage, high-tech startups in Michigan. Applicants committing private, partial matching of prize funds will be viewed more favorably.

    Applications must include provisions for all of the following: 

    • Run two statewide competitions, each preceded by one round of regional qualifiers (where each regional winner advances to the statewide competition), by December 31, 2026. 
    • Collaborate closely with MEDC’s Innovation Ecosystem division and Growth Office on sector focus, regional boundaries, scheduling, venues, and resource alignment. 

Per statute, these funds are intended to support startups developing innovative solutions that contribute to:

    • The retention or creation of high-quality jobs in Michigan 
    • The development and commercialization of competitive edge technologies 
    • The revitalization of Michigan communities

Application Timing and Review Process

Applications for the Michigan Innovation Fund will be accepted beginning July 2, 2025. Applicants are encouraged to submit by the Round 1 deadline to be considered for the initial round of funding.

  • Round 1 Deadline: Wednesday, July 16, 2025 at Noon ET
    MEDC will begin reviewing all applications received by this deadline immediately following its close. Selected proposals are planned to be recommended to the Michigan Strategic Fund (MSF) Board for a final decision in late August. Round 1 awardees will be publicly announced immediately following MSF approval.
  • Round 2 Deadline: Friday, August 8, 2025 at Noon ET
    Applications received after the Round 1 deadline and by the Round 2 deadline will be reviewed as part of the second and final round, pending availability of remaining funds. MEDC plans to recommend Round 2 selections to the MSF Board in late September, with award announcements to follow immediately thereafter.

Application Process Document

Applicants may submit multiple proposals across the application window and may be selected for more than one opportunity or category. For example, an organization could submit one proposal in Round 1 and two additional proposals (each for a distinct category) in Round 2. All applications received by either deadline will be reviewed.

Please note: Depending on the quantity and quality of proposals received, it is possible that all available funding will be allocated during Round 1. However, Round 2 applications will be reviewed before any Round 1 decisions are finalized.

Frequently Asked Questions 

For more information about the program, please review the Frequently Asked Questions Document.