Michigan Lt. Governor Garlin Gilchrist II joined the Michigan Strategic Fund (MSF) and Michigan Economic Development Corporation (MEDC) to announce the final awardee selected to receive support from the Michigan Innovate Capital Fund (MICF), which is a program representing the state’s efforts to continue growing a vibrant and robust entrepreneurial ecosystem.
The University of Michigan’s (U of M’s) Innovation Partnerships team was awarded $5 million to establish the Michigan University Innovation Capital Fund (MUICF) and the Michigan University Innovation Capital Consortium, which solidifies the state’s university ecosystem through a collaborative partnership between Michigan State University, Michigan State University Research Foundation, Wayne State University, Western Michigan University and Michigan Technological University. And the MUICF will drive economic development by supporting cutting-edge research and technology transfer from Michigan’s public universities.
The MUICF was designed to support and invest in startup companies that are based on research from Michigan’s public universities, operate in the state, and demonstrate high potential for driving economic growth and innovation. And the comprehensive application highlighted these universities’ dedication to driving positive change through collaborative research and commercialization of technological advancements.
Along with the new venture fund, the $5 million award will support the establishment of the Michigan University Innovation Capital Consortium, a platform that brings together university tech transfer and university-managed pre-seed venture fund leaders. The consortium will provide advisory and strategic support to the fund and portfolio companies through knowledge exchange, networking, resource-sharing, and fostering a collaborative environment where innovative ideas can support the state’s startups coming from Michigan’s public universities.
The initial members of the consortium include investors and tech transfer leaders from U-M, Michigan State University, Michigan State University Research Foundation, Wayne State University, Western Michigan University, and Michigan Technological University. Over the past six years, these universities have launched an average of 26 technology-based startups per year. Michael Psarouthakis, Executive Director for Impact Investments and Strategic Alliances within Innovation Partnerships, will oversee the MUICF.
MUICF builds on the commercialization success of five MEDC grant programs that operate statewide, including the Michigan Translational Research and Commercialization program that has hubs managed by U of M (life sciences and advanced transportation), Michigan State University (agricultural technologies and industrial biotechnology), Wayne State University (advanced computer technologies) and Michigan Technological University (advanced materials). Additionally, the new fund builds off the success of the Tech Transfer Talent Network Mentor-in-Residence program operating throughout the state of Michigan.
In October 2023, it was announced that Ann Arbor SPARK, Biosciences Research and Commercialization Center (BRCC), Invest Detroit and InvestUP received $18 million in funding from the MICF program – which was approved by the MSF Board in June. And the program received a $23 million allocation from the Jobs for Michigan investment fund, with MUICF receiving the remaining $5 million.
KEY QUOTES:
“Michigan has always been a state of dreamers, innovators, and doers. The MUICF will unleash Michigan innovation and imagination within our university ecosystem and support startups across the state as they grow our economy and create good-paying, high-tech jobs. Congratulations to the University of Michigan’s Innovation Partnerships and their partners on this collaborative effort to keep Michigan in the lead on the jobs, technology, and ideas of the future.”
– Lt. Governor Garlin Gilchrist II
“We are thrilled to receive this award from the MEDC to create and develop the Michigan University Innovation Capital Fund and Consortium. This new fund will provide critical early-stage investments to university startups that are developing world-changing new products. I look forward to collaborating with university tech transfer offices across Michigan, as we continue to strengthen our state’s research commercialization ecosystem to unlock the transformative power of university innovation.”
– Kelly Sexton, Associate Vice President of Research – Innovation Partnerships and Economic Impact at the University of Michigan
“I’m pleased to be able to collaborate with the U-M Innovation Partnerships team as they create this new funding mechanism for university startups across our state. There is tremendous ingenuity and exciting research taking place at Michigan Tech, and this new fund will open up more doors for our faculty and researchers. By having a dedicated venture fund that understands the unique challenges facing university startups, MUICF will ensure that they are positioned to create high-paying jobs and economic opportunity throughout our state.”
– Jim Baker, Associate Vice President for Research Administration at Michigan Technological University
“Collaboration is essential if we want to accelerate innovation, and so I am incredibly excited to see how the Michigan University Innovation Capital Fund and Consortium will create synergies between academia, venture capital and industry, facilitating the flow of ideas, expertise and resources to help build a brighter future for our great state. This collaborative approach with peer institutions statewide is vital to ensure that research activity emanating from across Michigan’s public universities not only addresses the challenges of today, but contributes to the growth and prosperity of tomorrow.”
– Rebecca Cunningham, Vice President for Research and Innovation at U of M
“The ability of university start-ups to access such early-stage funding is an excellent opportunity that will accelerate the business and technology development necessary to attract future investment for the growth of the company. The sustainability of the company during the earliest stages is critical to ensuring not only the commercialization potential of the innovative technologies from the academic institutions, but also the accompanying economic growth in Michigan.”
– Joan Dunbar, Interim Associate Vice President for Technology Transfer and Commercialization at Wayne State University
“Through initiatives like the Michigan Innovate Capital Fund, this award to Innovation Partnerships will help increase the amount of capital being invested in Michigan-based competitive edge technology companies. This collaborative program in particular will support the research and innovative ideas born out of Michigan’s thriving university ecosystem, while also diversifying and growing the state’s economy.”
– Amy Rencher, Senior Vice President of Small Business Services at the MEDC
