The state of Michigan has selected the first eight recipients of the $60 million Michigan Innovation Fund, designed to support the state’s venture capital funds and startup ecosystem.
Why it matters: This fund represents Michigan’s largest investment in its entrepreneurship ecosystem since the 21st Century Jobs Fund in 2005, demonstrating the state’s commitment to creating a supportive environment for entrepreneurs and startups.
The details:
- $48 million has been allocated to five existing evergreen funds, which are characterized by their lack of a fixed end date, enabling continuous reinvestment of proceeds from successful ventures into new opportunities.
- An additional $4.8 million will be used to establish new evergreen funds, including one based at Grand Valley State University.
- The remaining $7.2 million will support entrepreneurial programs and a pitch competition.
Several key institutions have received significant funding:
- ID Ventures, the investment arm of Invest Detroit, Ann Arbor Spark, University of Michigan Accelerate Blue Fund, and Michigan State University Research Foundation each received $10.6 million.
- The Western Michigan University Biosciences Research & Commercialization Center received $5.3 million.
- InvestUP, Traverse City-based 20Fathoms, and Grand Valley Research Corp. will each receive $1.6 million to establish emerging evergreen funds.
What they’re saying:
- “The creation and funding from the Michigan Innovation Fund is essential for inviting and retaining creative minds in Michigan, helping them scale their ideas efficiently,” said Steve Haakenson, executive director of WMU’s Biosciences Research & Commercialization Center.
- Jeff Wesley, executive director of the MSU Research Foundation & Michigan Rise, emphasized the fund’s broader impact on Michigan’s entrepreneurs.
The background: Funding for the Michigan Innovation Fund comes from the Venture Michigan Fund, established under the Michigan Early Stage Venture Investment Act of 2003. Investment proceeds are expected to return to the state by 2030, with Governor Whitmer proposing an early return of $100 million, allocating $60 million to the Michigan Innovation Fund and $40 million to the general fund.
What’s next: The final $4.2 million will support Michigan-based nonprofit organizations that provide startup assistance, including acceleration tracks and innovation events. Interested organizations can apply on the Michigan Innovation Fund website.