Michigan Innovation Fund Program

The Michigan Innovation Fund Program, established under Public Act 190 of 2024, is a strategic funding initiative managed by the Michigan Strategic Fund (MSF) in partnership with the Michigan Economic Development Corporation (MEDC). Signed into law by Governor Whitmer in January 2025 and effective as of April 2, 2025, the fund represents a comprehensive effort to catalyze the state’s entrepreneurial and innovation landscape. Developed from bipartisan legislation including House Bills 5651, 5652, and 5653, the program redirects early returns from Venture Michigan Funds I and II into the Michigan Innovation Fund via the 21st Century Jobs Trust Fund. It seeks to address persistent gaps in Michigan’s innovation infrastructure by leveraging existing MEDC and MSF mechanisms to drive economic development through high-impact startup activity. This round of the program focuses on distributing the remaining $7.2 million of a total $60 million fund, with $4.2 million allocated to Startup Support Services and $3 million for Statewide Startup Investment Competitions. The Startup Support Services stream is broken into several categories: Startup Acceleration Tracks, Ecosystem Convenings, Risk Capital Ecosystem Development, and Innovation Ecosystem Advocacy. Startup Acceleration Tracks support initiatives such as First Customer Matchmaking, Research-to-Market Catalysts, Founder Development, and Place-based Entrepreneurship Programs. Meanwhile, the Ecosystem Convenings sub-track funds regional and statewide convenings that enhance entrepreneur and investor network connectivity. Organizations eligible to apply must be Michigan-based nonprofits or higher education institutions (or their affiliated foundations) with federal tax-exempt status under sections 501(c)(3) or 501(c)(6). They must also provide programming or technical assistance to Michigan startups, or operate funds that invest in such startups. A key requirement is that no more than 25% of grant funds be used for administrative and technical assistance expenses. All recipients must submit annual, publicly available reports detailing their investment activities and outcomes. The Statewide Startup Investment Competitions category is designed for one applicant and aims to accelerate the growth of early-stage, high-tech startups through two statewide competitions and their regional qualifiers, to be completed by December 31, 2026. Applicants must collaborate with MEDC’s Innovation Ecosystem division and show alignment with sector and regional goals. Preference is given to applicants providing private matching of prize funds. This segment emphasizes high-quality job creation, technological commercialization, and the revitalization of Michigan communities. Applications open on July 2, 2025. The program has two competitive rounds. The Round 1 deadline is July 16, 2025 at Noon ET, and Round 2 closes on August 8, 2025 at Noon ET. Applications received in Round 1 will be reviewed immediately after the deadline, with funding recommendations submitted to the MSF Board in late August. Round 2 applications will be reviewed similarly, with decisions expected in late September. While applicants can submit multiple proposals across categories and rounds, it’s important to note that Round 2 funding is contingent upon available funds, and decisions for Round 1 will not be finalized until Round 2 proposals are also considered. The MEDC, located at 300 N. Washington Sq., Lansing, MI 48913, serves as the key administrative contact for the program. Prospective applicants can contact the MEDC at 888.522.0103 for more information.