Michigan Chronicle
Jan. 15, 2025
Ebony JJ Curry
The ink on the bills had barely dried when Gov. Gretchen Whitmer declared a significant victory for Michigan’s entrepreneurs. With the signing of House Bills 5651, 5652, and 5653, Michigan’s innovation economy is poised for transformation. The creation of the $60 million Michigan Innovation Fund marks a defining moment for the state, promising to ignite opportunity and growth for startups and early-stage businesses across the region.
“For too long, we overlooked the importance of helping grow all areas of our economy, especially Michigan entrepreneurs and the impact they can have on future jobs and economic growth,” Representative Alabas Farhat, one of the bill’s sponsors, stated. The fund’s mission is clear: provide critical early-stage investment capital to Michigan’s startups, diversify the economy, and create a self-sustaining ecosystem that ensures economic progress for generations to come.
For many entrepreneurs, accessing the capital needed to bring bold ideas to life has meant leaving Michigan for other states—often to neighboring Ohio or as far as the coasts. The Michigan Innovation Fund aims to reverse this trend. “The investments we make in entrepreneurs, innovative technologies, and new industries today will power Michigan’s economic future,” Farhat emphasized. This legislation comes after years of persistent efforts to address the gap in funding that has hindered Michigan’s ability to compete in the innovation economy.
The bipartisan nature of the initiative underscores its importance. Republican Representative Greg VanWoerkom highlighted the economic potential this investment holds: “I truly believe the next great business is here in Michigan, and the Michigan Innovation Fund will play a vital role in advancing our state’s economic ecosystem and helping our entrepreneurs thrive.” By combining public and private resources, the fund offers a pathway for innovation to flourish statewide.
Michigan has often been celebrated for its talent and robust research institutions. Representative Jason Hoskins pointed to this unique positioning. “There is real potential to be a leader in creating and growing innovative startups. Other states, especially on the coasts, figured this out a long time ago,” Hoskins said. “The Michigan Innovation Fund is key if we truly want to generate more opportunities for entrepreneurs, leverage the state’s research universities, and see our state emerge as a leader in business growth.”
The fund’s structure is intentionally designed to foster long-term impact. Awards will go to nonprofit and university-backed funds with proven records of success. Returns from investments will recycle back into these funds, creating a sustainable cycle of support for future startups. This model ensures that Michigan’s entrepreneurs receive the resources they need to thrive without the funding drying up over time.
The initiative builds on the strength of established evergreen funds in Michigan, including ID Ventures at Invest Detroit, Ann Arbor SPARK, the University of Michigan’s Accelerate Blue Fund, the MSU Research Foundation, and Western Michigan University’s Biosciences Research and Commercialization Center. Additionally, three new emerging evergreen funds will be developed in Grand Rapids, Traverse City, and the Upper Peninsula, extending the reach of support across the state.
Patti Glaza of Invest Detroit emphasized the transformative nature of this investment. “We are investing in our state’s talent and reinvigorating our entrepreneurial ecosystem by giving diverse and ambitious founders the tools and support they need to succeed,” Glaza explained. She credited Governor Whitmer and other leaders for their collaboration in driving this forward. “This is the first program of its kind here in Michigan, and it’s going to drive successful innovation commercialization and economic growth in our state.”
Other leaders echoed Glaza’s optimism. “Innovative startups have the power to change lives—whether through medical breakthroughs or cutting-edge technologies—and they play a crucial role in driving Michigan’s economy forward,” Kelly Sexton from the University of Michigan’s innovation partnerships division remarked. She framed the fund as a bold statement of Michigan’s commitment to fostering innovation. “Michigan is now making a bold statement: we are committed to fostering an innovation ecosystem where companies aren’t just founded here—they grow, thrive, and create jobs right here in our communities.”
Ann Arbor SPARK Chief Executive Officer Paul Krutko spoke about the broader implications of the fund for Michigan’s economy. “The MI Innovation Fund is an important step toward keeping Michigan competitive in the innovation economy. Governor Whitmer’s leadership helps ensure that inventions developed here can grow and thrive here, driving long-term economic growth,” Krutko explained. His sentiments were shared by Jeff Wesley of the MSU Research Foundation, who called it “an exciting moment for our state’s entrepreneurial future.” Wesley noted that leveraging existing resources and creating new funds would drive long-term economic growth and innovation leadership.
Western Michigan University’s Bioscience Research and Commercialization Center Executive Director Steve Haakenson highlighted the critical gap the fund addresses. “The early-stage capital supporting the innovating entrepreneurs in Michigan is limited,” Haakenson said. “These nonprofit evergreen funds receiving this capital have proven track records for establishing and growing new businesses and jobs throughout the state.”
The fund’s launch also drew praise from organizations dedicated to venture capital and economic development. Ara Topouzian of the Michigan Venture Capital Association celebrated the fund’s potential to bolster Michigan’s founder community. “We view this as just the beginning of ongoing efforts to strengthen the venture capital landscape in Michigan,” Topouzian said. Randy Thelen of The Right Place underscored the competitive nature of today’s global economy. “Michigan has a rich history of innovation, but that history does not guarantee future success. We must continue to be bold and invest in the next wave of great Michigan companies.”
Leaders in specific sectors also voiced support. Jeff Donofrio of Business Leaders for Michigan called the fund a smart investment in Michigan’s future prosperity, while Hassan Beydoun of Detroit’s Economic Development office highlighted its focus on high-growth companies. “The Michigan Innovation Fund is a smart investment in the early-stage, high-growth companies that will power Michigan’s future economic growth and prosperity,” Beydoun said.
The enthusiasm extended to regional leaders. Warren Call of Traverse Connect celebrated the fund’s impact on northwest Michigan’s entrepreneurial ecosystem. “Innovative startups in Michigan are developing scalable businesses that will thrive and grow thanks to this important investment,” Call remarked. Mark de la Vergne of Michigan Central noted the fund’s role in making Michigan competitive on the global stage.“Michigan Central and our partners have made incredible progress in attracting cutting-edge startups from across the country and around the world, and passage of this legislation would go a long way in accelerating progress not only in Detroit but all over Michigan.”
As Michigan steps boldly into the future, the Michigan Innovation Fund is poised to reshape the state’s economic landscape. The support it provides to startups and entrepreneurs isn’t just an investment in business—it’s an investment in Michigan’s people, communities, and collective prosperity. This initiative is a testament to what’s possible when leaders across the aisle unite around a shared vision for progress and equity in economic growth.