Detroit Launches $700,000 Startup Fund to Propel Innovation and Job Creation

Detroit has unveiled a groundbreaking $700,000 initiative designed to bolster the city's burgeoning tech ecosystem and stimulate job creation.

Announced by Mayor Mike Duggan alongside the Detroit Economic Growth Corporation (DEGC) and City Council President Mary Sheffield, the Detroit Startup Fund is set to distribute grants to local tech startups over the next year.

Speaking at Newlab at Michigan Central, a hub now home to over 140 startups, Mayor Duggan emphasized Detroit's enduring spirit of innovation.

"Detroit has always been a city of innovators willing to take risks to create something new," he stated.

"The Detroit Startup Fund is one of the ways we are making Detroit the easiest and most supportive city anywhere to start and grow innovative new companies."

The fund will award a total of 26 grants across two rounds within the next year.

This includes 20 seed grants of $15,000 each and six scale grants of $50,000 each, targeting Detroit-based startups.

The first 13 grant recipients will be announced in late 2025, with a second round opening in early 2026.

Applications for the initial round are open now at detroitmi.gov/startup and will close on August 25.

Eligible businesses must meet specific criteria, including being Detroit-based startups established within the last 10 years and offering scalable, venture-backable products or services that enhance the quality of life for Detroit residents or improve city services.

Additionally, scale grant applicants must have raised at least $100,000 in external investment over the past 18 months and be actively raising at least $250,000 in private capital.

Grant funds can be utilized for various growth-oriented activities, such as product development, staffing, testing, customer acquisition, and market expansion.

Detroit's startup ecosystem has been gaining significant momentum.

According to Startup Genome's 2022 Global Startup Ecosystem Report, Detroit was ranked as the world's number one emerging startup hub.

This surge is supported by substantial investments in infrastructure, including developments like Newlab at Michigan Central, TechTown, and the University of Michigan Center for Innovation.

These initiatives are collectively driving the city's economic future.

However, early-stage capital remains a challenge for many Michigan startups.

"Detroit has a rich legacy of driving innovation and economic mobility," said Justin Onwenu, the city's first Director of Entrepreneurship and Economic Opportunity.

"This fund will give founders the capital and visibility needed to grow and create high-quality jobs right here at home."

The initiative is part of a broader effort by the city and DEGC to supercharge Detroit's tech ecosystem and attract further economic investment.

"This program will create a ripple effect across our local economy," noted Kevin Johnson, President and CEO of the DEGC.

"Every startup that stays in or comes to Detroit because of this new Detroit Startup Fund will drive growth – hiring locally, sourcing from Detroit vendors, and inspiring other entrepreneurs to follow suit."

Funding for the Detroit Startup Fund was made possible through the city's general fund budget, approved by the Mayor and City Council.

City Council President Mary Sheffield highlighted the program's significance.

"This $700,000 investment is a bold step toward creating a more inclusive and equitable economy that centers Detroiters," she said.

"By opening doors for our entrepreneurs, we are investing directly in the talent, resilience, and creativity of our people."

Local tech leaders have also praised the initiative.

"This fund isn't just about money," said Johnnie Turnage, Co-Founder of Black Tech Saturdays.

"It's about validation and creating pathways for startups that traditional funding sources often overlooked."

As Detroit continues to position itself as a leader in innovation, the Detroit Startup Fund represents a significant investment in the city's future, aiming to generate over $1 million in economic impact for local startups.

For more information and to apply, visit detroitmi.gov/startup.