Early Stage Funding

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.

Business Accelerator Fund (BAF)

The Business Accelerator Fund (BAF) is available to participating business accelerators in Michigan’s statewide SmartZone network. These funds are used toward the delivery of highly specialized services to their clients that are not otherwise available from these business accelerators. Participating business accelerators engage third party specialists to help advance the client’s path to commercialization, company success, and economic impact for the state of Michigan. 

• BAF funds are awarded to accelerators through a competitive review process.
• A company may not receive more than $50,000 in BAF services, though most engagements are in the $7,000 to $15,000 range.
• BAF is administered by the SBDC. Companies interested in participating are encouraged to contact the nearest participating business accelerator.

BAF services expanded for early stage tech companies in response to COVID-19 (effective April 6, 2020)

• Expanded allowable use of funds for high-tech companies in need resulting directly from the public health crisis
• Expanded size eligibility requirements and allowable use of funds for high-tech companies developing COVID-19 diagnostics, therapeutics, or innovations that support the health care system’s response to the virus
• Support for certain very small non-tech companies involved in manufacture or distribution of personal protective equipment and critical medical supplies.
• For additional information, please contact your business accelerator.

Emerging Technologies Fund (ETF) 

The Michigan Emerging Technologies Fund (ETF) is designed to expand funding opportunities for Michigan technology-based companies in the federal innovation research and development arena by providing match dollars (of up to $25,000 for Phase I and up to $125,000 for Phase II) to eligible Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) proposals. Approved ETF applications receive a letter of support to include with their SBIR/STTR proposal. The ETF is administered by the SBDC. For more information and to apply visit the SBDC website.