LANSING, Mich. (WZMQ) -Michigan Tech University is participating in a collaboration to support a $5 million fund for early-stage start-ups. The University Innovation Capital Fund is a $5 million investment targeting specifically university spin-off start-ups in their earliest pre-seed stages.
Using the state’s Strategic and Innovation Capital Funds, The University of Michigan is leading the fund, with Michigan State University, Wayne State University, Western Michigan University, and Michigan Technological University.
Nataliya Stasiw, The Director of the Michigan Economic Development Corporation’s Equity Capital Program, said that in the past, start-ups that begin in Michigan’s public universities have had to leave the state to secure the funding they need.
“What we are seeing is this very, very steady need for assisting early-stage companies that companies,” Stasiw said. “We see that a lot of startups that are spinning out of Michigan universities, they’re leaving the state, so we want to make sure we put as much effort as we can in supporting those companies.”
The University Innovation Fund was created to address that need, specifically for university spin-off startups in their pre-seed or early stages. Stasiw said the goal is to drive economic growth by investing in startups that are based on research from Michigan’s public universities.
The award also supports the establishment of a consortium, to create a collaborative platform for universities to provide other resources and mentorship to start-ups.
Stasiw said it’s about universities working together rather than competing, to create an ecosystem that enhances the experiences of early startups.
“Encouraging universities to work with one another is so beneficial for the company,” Stasiw said. “What this collaborative effort ensures is the company gets the right mentorship from the right people at the right level, at the right university.”
Stasiw said each of Michigan’s universities has its unique set of strengths and resources to contribute to the fund and consortium to make sure that new start-ups have what they need to continue to develop, without having to leave the state.
