Detroit Startup Fund

The Detroit Startup Fund, also referred to as the Detroit Entrepreneurial Challenge Grant, is a competitive grant program administered by the Detroit Economic Growth Association (DEGA) in partnership with the City of Detroit and the Detroit Economic Growth Corporation (DEGC). The program is designed to strengthen Detroit’s innovation ecosystem by supporting high-potential, venture-backable technology startups that are either currently based in Detroit or planning to relocate there. Leveraging Detroit’s momentum as a top-ranked emerging startup ecosystem globally, the fund aims to catalyze economic growth, job creation, and wealth-building by providing early-stage capital to tech entrepreneurs who are poised to scale impactful businesses. The program operates on a two-round cycle annually, offering two main types of grants: Seed Grants of $15,000 and Scale Grants of $50,000. Seed Grants are available to early-stage Detroit-based startups or startups committed to relocating to Detroit within three months. These grants are intended to support foundational activities such as product development, customer validation, and team formation. Scale Grants are awarded to startups that have already demonstrated market traction and secured at least $100,000 in external private investment within the past 18 months. Eligible Scale Grant applicants must also be actively raising at least $250,000 in additional private capital at the time of application. To qualify, applicants must be for-profit entities in good standing with the State of Michigan, such as LLCs, corporations, LPs, or LLPs. Nonprofits, faith-based organizations, franchises, and ecommerce businesses without a physical Detroit presence are not eligible. The business must either have its principal place of business in Detroit or maintain a substantial operational presence in the city. Scale Grant applicants must provide documentation proving past investment and current fundraising activity. All applicants are required to submit a suite of materials, including business formation documents, tax filings, a business plan or pitch deck, and other verification forms. Funds awarded must be used for business growth activities directly tied to scaling operations. Allowable uses include product development, hiring staff, go-to-market execution, customer acquisition, IP protection, compliance, and professional services. Disallowed uses include paying taxes, rent, debt repayment, founder salaries not tied to operations, legal settlements, and personal or entertainment expenses. Each grant is disbursed in tranches, contingent on progress reports and compliance with the Grant Agreement, which outlines use of funds, reporting obligations, and clawback provisions for non-compliance. Applications are reviewed by an Evaluation Committee based on six criteria: vision and growth plan, traction and track record, team capacity, Detroit presence, civic impact, and use of funds. The maximum score is 100 points. All awards are subject to the final approval of the DEGA Executive Committee. Finalists may be asked to submit additional documentation or attend interviews. The second round of applications opens February 2, 2026, and closes March 2, 2026. Applicants will be notified of awards by March 10, 2026, with public announcements scheduled for March 18, 2026. The Detroit Startup Fund positions itself as a key mechanism for advancing Detroit's economic revitalization through inclusive, innovation-driven entrepreneurship.

Highlight scalability, civic application, and strong team credentials. Proof of external fundraising improves competitiveness.