By Jennifer Eberbach, MLive
Two Ann Arbor-based organizations that foster entrepreneurship and help startup companies have been awarded millions through a new state fund.
Ann Arbor SPARK and the University of Michigan Accelerate Blue Fund are among the first eight recipients of the Michigan Innovation Fund, which Gov. Gretchen Whitmer signed into law in January.
The fund received a $60 million appropriation with bipartisan support in the state Legislature, according to the state’s announcement.
The money will support existing early-stage and emerging evergreen venture funds and others “who contribute to the entrepreneurial ecosystem in Michigan, especially toward startup companies, founders and funds,” it states.
Ann Arbor SPARK has been awarded $10.6 million from the Michigan Innovation Fund.
The economic development organization has provided early-stage investment capital to more than 200 Michigan companies since 2007, according to Ann Arbor SPARK.
They offer boot camps, co-working space, coaching and mentorship for startups. They also provide small business support and services for businesses looking to grow.
“In Ann Arbor, we put a premium on innovation and ingenuity,” Mike Flanagan, Ann Arbor SPARK’s vice president of capital programs, said in a statement.
The organization connects more than 450 entrepreneurs with resources or funding a year, and the state funding award will help them reach more startups and entrepreneurs, Flanagan said.
“One of the most significant things we can do to scale our innovation ecosystem is to show stability and reliability in our investments, and this fund provides us that assurance,” he continued. “We look forward to continuing this work with all who know Michigan is home to the best and brightest eager to thrive.”
The state also awarded the University of Michigan Accelerate Blue Fund $10.6 million.
The fund invests exclusively in University of Michigan-licensed startups, providing early-stage venture capital to help bridge the funding gap between initial launch and larger investments, according to the university.
It also provides business mentoring and IP support through UM Innovation Partnerships.
“The Michigan Innovation Fund underscores our state’s commitment to supporting founders and advancing a thriving startup ecosystem,” said Kelly Sexton, Ann Arbor SPARK board chair and Associate Vice President for Research – Innovation Partnership and Economic Impact at the University.
“With this new support for the Accelerate Blue Fund, we can help more University of Michigan startup founders bring new technologies to market faster and with greater impact,” Sexton said in a statement.
“This investment fuels near-term startup growth and strengthens our ability to invest in future breakthrough startups,” she continued. “By providing the capital to invest in a range of high-tech startups, the Michigan Innovation Fund helps diversify Michigan’s economy and positions the state as a national leader in innovation-driven growth.”
Others who were awarded funds in the first round include:
- ID Ventures, Detroit; $10.6 million
- MSU Research Foundation, East Lansing; $10.6 million
- Western Michigan University Biosciences Research and commercialization Center, Kalamazoo; $5.3 million
- InvestUP, Upper Peninsula; $1.6 million
- 20Fathoms, Traverse City; $1.6 million
- Grand Valley Research Corp., Grand Rapids; $1.6 million
“Michigan is a state of makers and doers, and we established the bipartisan Michigan Innovation Fund to unleash their entrepreneurial energy and keep growing our economy,” Gov. Gretchen Whitmer said in a statement.
“Today’s awardees will harness these new resources to continue pursuing their big ideas in Michigan, leading to more jobs, more companies, and more investments in our communities,” Whitmer continued.
Additional fund recipients not affiliated with higher education or local economic development organizations will be announced at a later date.
