Equity Funding Programs

MEDC-Sponsored Equity Capital Funds

Michigan’s entrepreneurial ecosystem is powered by a diverse portfolio of venture and innovation funds supported by the Michigan Economic Development Corporation (MEDC.) These programs collectively aim to increase access to early-stage capital, drive commercialization of new technologies, and strengthen Michigan’s position as a leader in innovation-led economic growth. The primary objectives of the MEDC-supported equity capital initiatives are to:

• Increase the amount of capital being invested in Michigan-based technology companies that are in their early innings. 
• Create a capital climate that supports the development, retention, and attraction of venture-backed technology companies in Michigan. 
• Build a pipeline of high-growth, high-tech company deal flow for the subsequent stages of funding, attracting investments from inside and outside the State of Michigan. 

Partners that are actively operating early-stage investment funds that have been supported by MEDC and Michigan Strategic Fund through Michigan Innovation Fund, Michigan Innovate Capital Fund, and the Pre-Seed Fund programs include:

• 20Fathoms provides pre-seed investment and supports innovative companies in software, advanced manufacturing, and health technology sectors and complements 20Fathoms’ accelerator and entrepreneurial development programs.
• Ann Arbor SPARK PreSeed Fund supports entrepreneurs and technology startups across Michigan through capital support, coaching, assistance with grant funding and more.
• Biosciences Research and Commercialization Center (BRCC) Fund provides startup and gap funding to promising Michigan-based life sciences and medical device ventures entering the commercialization phase of development.
• Grand Valley Research Corporation supports startups and entrepreneurial ventures affiliated with Grand Valley State University or operating within West Michigan’s innovation ecosystem.
• ID Ventures provides funding to Michigan-based tech startups seeking investment in the PreSeed, Seed, and Series A rounds.
• InvestUP Michigan Outdoor Innovation Fund supports entrepreneurs across Michigan in the outdoor recreation industry. The Fund will make investments in promising Michigan-based startups that are commercializing cutting-edge technologies in outdoor recreation.
• MSURF Michigan Rise invests in early-stage Michigan technology companies that drive innovation in high-growth sectors where Michigan has a competitive advantage, including advanced manufacturing, energy and sustainability, agriculture and consumer products, healthcare and life sciences, software and digital technologies, and mobility and emerging industries.
• Michigan University Innovation Capital Fund and Consortium is a collaborative effort between the University of Michigan’s Innovation Partnerships and Michigan State University, Michigan State University Research Foundation, Wayne State University, Western Michigan University and Michigan Technological University. The Fund is designed to unleash university innovation to drive economic growth by investing in early-stage startups based on research from Michigan’s public universities.
• U-M Accelerate Blue Fund invests in early-stage, U-M-affiliated startups commercializing university research innovations. The fund bridges the gap between discovery and venture capital readiness by supporting companies that translate academic research into scalable commercial solutions.
• Union Heritage Michigan Capital Innovation Fund focuses on the Consumer, Technology, Life Sciences, Mobility, Clean Energy/Climate Tech, Media and Entertainment, and Advanced Manufacturing sectors. The Fund invests in founders who leverage their cultural competency to solve important problems that have a definitive, positive impact on underrepresented communities.

SSBCI 2.0 Small Business Venture Capital Program

The State Small Business Credit Initiative (SSBCI) was recently reinstated with $10 billion in funding as part of the American Rescue Plan Act of 2021 and is intended to provide capital to small businesses and startups that can be used either for debt or equity investment programs. On May 19, 2022, Michigan has been approved for up to $236,990,950 to utilize for capital access, credit support, and venture capital programs designed to assist small businesses grow.

The Small Business Venture Capital Program (“SBVCP”) provides up to $75 million to increase the availability of capital to early-stage, technology-based businesses in the State of Michigan. As approved by the U.S. Department of the Treasury, the Program supports funding for qualified for-profit early-stage, technology-based businesses by investing as a limited partner in venture capital funds operating in the State of Michigan.

Michigan SSBCI Venture Capital Investments

For more information, visit here.