Ann Arbor SPARK, which provides economic development leadership to Livingston and Washtenaw counties, is one of four organizations receiving awards from the Michigan Innovate Capital Fund to continue growing a vibrant and robust entrepreneurial ecosystem in Michigan.
Ann Arbor SPARK received $5 million.
Ann Arbor SPARK has extensive experience managing statewide funds on behalf of the State of Michigan, including the original Michigan Pre-Seed Capital Fund and the Michigan Angel Fund. Over the last 16 years, Ann Arbor SPARK has invested over $30 million in more than 250 early-stage Michigan-based technology companies.
As part of the Michigan Innovate Capital Fund program, Ann Arbor SPARK will receive that $5 million over a 2.5-year period, co-investing at least $1.5 million alongside the Fund into companies with a tech focus.
“We’re excited to expand our investment in and support for early-stage companies and founders throughout Michigan,” said Mike Flanagan, vice president of capital programs. “Ann Arbor SPARK managed the first pre-seed fund for the state, starting in 2006, and invested in over 200 Michigan companies, many of which have helped diversify our economy and create high paying jobs. This next round of funding will build on that success and unlock the next wave of entrepreneurs and innovations in Michigan.”
Ann Arbor SPARK, Biosciences Research and Commercialization Center, Invest Detroit, and InvestUP will share in $18 million in funding from the program, approved by the Michigan Strategic Fund Board in June 2023. The program received a $23 million allocation from the Jobs for Michigan investment fund. The remaining $5 million allocated for the MICF program is currently in the review process.
These funds will help early-stage, high-tech companies develop products and put them on the market, creating good-paying, high-skilled jobs that keep talent in Michigan and diversify Michigan’s economy. Applicants were eligible to receive initial awards of up to $5 million with the option to increase the award amount during the term of the award, subject to available funding and approval of the MSF. MICF gave preference to nonprofits in underserved locations that clearly addressed the funding gap in underrepresented communities.
The program builds on the state’s efforts to create an environment that supports the attraction and retention of technology companies in Michigan. These include the Michigan Small Business Venture Capital Program, support for the Michigan Venture Capital Association’s Venture Fellows program, and more.
With record low unemployment, a growing workforce, and historic investments in economic competitiveness, Michigan is on the move and open for business.
In July, Michigan’s unemployment rate reached historic lows—the lowest in 23 years and only the third time in Michigan history (the second time during Governor Whitmer’s administration) that the unemployment rate fell below 4.0%.
The U.S. Department of Labor ranks Michigan No. 3 in the nation and no. 1 in the Midwest in percentage of workers added to the workforce over the last 6 months, reversing a trend from 2005 to 2018 in which Michigan was one of the largest declines in workforce population.
