News Summary
Detroit has announced the Detroit Startup Fund, a program designed to support local tech businesses with grants up to $50,000. The initiative, backed by $700,000 from the city’s general fund, aims to foster innovation and entrepreneurship within the city, with a focus on startups operating for less than ten years. Applications are open until August 25, 2023, with initial grant recipients to be revealed in September 2023.
Detroit has launched a new initiative to foster local tech businesses through the Detroit Startup Fund, which was announced on July 28, 2023. Operating out of Newlab Detroit, a mobility business hub located in the historic Michigan Central Station in the Corktown neighborhood, this program aims to support emerging startups by providing grants of up to $50,000. The launch is backed by the allocation of $700,000 from the city’s general fund, with approval from the Detroit City Council.
The Detroit Startup Fund will distribute a total of 26 grants across two application rounds. The first round offers 20 seed grants of $15,000 each, intended for early-stage startups. The second component includes six scale grants of $50,000 each, which are available for startups that have received recent outside investments. To qualify for these larger scale grants, applicants must have secured at least $100,000 in outside funding within the last 18 months and actively be pursuing a minimum of $250,000 in private capital.
Applications for the initial round of funding opened on July 28 and will close on August 25, 2023. The first 13 grantees are set to be announced in September 2023. Following this announcement, the second round will commence in February 2026, where the remaining 13 grants will be awarded.
Support for Local Startups
Detroit Mayor Mike Duggan emphasized the importance of creating a nurturing environment for local startups and enhancing the tech sector in Detroit. There is a vision for establishing what could mirror the success seen with the Motor City Match program, allowing for ongoing funding opportunities in the future.
Members of the Detroit City Council have expressed their support for this initiative, recognizing it as a catalyst for innovation and a means to retain talent within the city. The Council President noted that the program’s goal is to build a burgeoning startup hub where innovative ideas can transition into concrete economic initiatives. Furthermore, local entrepreneurship is believed to benefit entire neighborhoods by stimulating economic activity and creating new storefronts and services.
Positioning Detroit for the Future
With an eye toward modern employment opportunities beyond the traditional automotive industry, city officials, including the District 7 Council Member, have reiterated the city’s ambition to position Detroit as a leading center for tech and mobility. The initiative seeks to promote equitable access to funding for local founders, focusing on those businesses that may not have connections to established tech hubs like Silicon Valley.
Eligible businesses applying for the startup fund must be operational for less than ten years, with a majority of their operations based within Detroit. This requirement highlights a commitment to supporting local entrepreneurs who are crucial in transforming the economic landscape of the city.
Future Impact and Opportunities
The Detroit Startup Fund is part of a broader strategy designed to cultivate a high-tech culture while opening up new opportunities for city residents. Kevin Johnson, president of the Detroit Economic Growth Corporation, has reiterated the city’s dedication to supporting local businesses and encouraging innovation. Entrepreneurs like Arabia Simeon, the co-founder of Politics on the Go (POGO), are eagerly looking to apply for funding, seeing it as a vital means to propel their startups forward and create jobs within the community.
Overall, the Detroit Startup Fund marks a significant step towards solidifying the city as a nurturing ground for innovation, with aspirations to strengthen the local economy through technology and entrepreneurship, ensuring that Detroit’s entrepreneurial potential is fully realized for years to come.
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Additional Resources
- Crain’s Detroit: Detroit Launches First Ever Municipal Startup Fund
- Crain’s Detroit: Michigan Innovation Fund Boosts State’s Startup Ecosystem
- Bridge Detroit: How Detroit Startups Can Apply for New Grant Program
- Google Search: Detroit Startup Fund
- Crain’s Detroit: Michigan’s New $60M Startup Fund Aims to Compete with Ohio
- Wikipedia: Detroit
Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
