Michigan
State Resources
With over 3,000 miles of shoreline, Michigan is the only state that touches four of the five Great Lakes—Superior, Michigan, Huron, and Erie. Home to the “Big Three” automakers, Michigan’s economy, identity, and infrastructure are deeply tied to the automobile industry. The state also has a thriving advanced manufacturing sector and a growing healthcare enterprise. The Michigan Strategic Fund (MSF) was created by the state legislature in 1984 with broad authority to promote economic development and job creation in the state. Under the Department of Labor and Economic Opportunity, the Michigan Strategic Fund and its board oversee the Michigan Economic Development Corporation (MEDC), the state’s lead economic development agency. MEDC’s mission is to “achieve long-term economic prosperity for Michiganders by investing in communities, enabling the growth of good jobs, and promoting Michigan’s strong image worldwide.” MEDC offers a range of business development programs and services, including access to capital, small business and tech startup assistance, and industry 4.0 support. Highlighted below is a sample of what MEDC is doing to support new ventures in the state.
Emerging Technologies Fund (SBIR/STTR Matching)
In partnership with the Michigan Small Business Development Center (SBDC), MEDC sponsors the Emerging Technologies Fund (ETF), an SBIR/STTR award matching grant program that offers up to $25,000 for Phase I and up to $125,000 for Phase II. Michigan-based companies that have received no more than two SBIR/STTR Phase II are eligible to apply prior to submitting their SBIR/STTR proposal to the federal government. See the ETF Program Guidelines.
First Capital Fund
Established in 2017 with funding from MEDC and the New Economy Initiative (Detroit, MI), the First Capital Fund makes initial investments – typically $150,000 – in Michigan-based tech companies seeking pre-seed and seed stage funding. The fund is milestone-based and oriented toward helping startups achieve follow-on investment from the fund or additional capital from angel investors or venture capital firms. The fund is managed by Invest Detroit (ID) Ventures, which is responsible for all investment determinations (see ID Ventures’ current portfolio).
Industry 4.0 Technology Implementation Grant
Launched in 2022, MEDC’s Industry 4.0 Technology Implementation Grant Program provides small Michigan manufacturers with 50% reimbursement for qualifying technology implementation projects, up to $25,000. Priority areas include additive manufacturing and advanced materials, AI, and robotics/automation. In FY 2024, 113 Implementation Grants, totaling more than $2.5 million, were awarded statewide (see the MSF/MEDC FY2024 Annual Report list). Most awards are issued for the full $25,000. Applications are handled by the regional economic development offices.
Michigan Rise
MEDC supports Michigan Rise, a subsidiary of the Michigan State University Foundation that makes initial investments of $50,000–$150,000 in early-stage Michigan technology companies. Michigan Rise focuses on investing in high-growth sectors where Michigan is thought to have a competitive advantage, including advanced materials and manufacturing, cleantech and energy, agricultural technology, consumer products, healthcare and life sciences, and software and digital technologies (see current portfolio). In 2024, Michigan Rise invested in about 25 companies.
