LANSING, Mich. — Sen. Michael Webber on Wednesday introduced legislation to help create more Michigan jobs through long-term support for startup businesses in the state.
“We created the Michigan Innovation Fund in 2024 with $60 million to support venture capital investment. It was an important first step, but it was not nearly enough to compete with surrounding states like Ohio, Minnesota, Indiana and Wisconsin,” said Webber, R-Rochester Hills. “My bills would ensure the long-term support of our innovation fund to become self-sustainable to support 21st century jobs in Michigan.
“The expanded innovation fund would prioritize critical industries such as automotive, agriculture, semiconductors, manufacturing and defense. Supporting innovation in homegrown businesses in these industries would supercharge our economy while keeping money here in our state and generating a positive return on investment for taxpayers.”
Public Acts 188-190 of 2024 created the Michigan Innovation Fund to provide grants to certain “evergreen” funds and nonprofits to promote venture capital investment. Evergreen funding is the gradual infusion of capital into a venture, which differs from traditional funding, in which all required capital is supplied up front. Many states have similar funds that support pre-seed and early-stage investing in startups.
After talking with experts, Webber introduced Senate Bills 1072 and 1073 to:
- Distribute support from the innovation fund in the same manner as the original $60 million.
- Require the state to deposit $30 million per year into the innovation fund from fiscal year 2026 through fiscal year 2031.
- Have the state deposit $5 million annually into the fund after FY 31 until the sunset of the fund in FY 55 to keep up with inflation for projects and cover any potential jump in administrative costs.
“We want to thank Senator Webber for his leadership on these bills,” said Patti Glaza, executive vice president, venture and managing director of ID Ventures. “If Michigan wants to become a top 10 state for innovation, we must prioritize investment in the innovation economy. Establishing a stable, ongoing funding source for the Michigan Innovation Fund would provide the consistency needed to support early-stage evergreen funds, help startups launch and scale, commercialize university-backed ideas, and attract and retain talent.”
Webber said that having the innovation fund at this level would allow existing evergreen funds to mobilize a total of $150 million to $200 million a year while maintaining cash flow for equity and liability purposes.
“The collaborative and stakeholder-driven approach that the Michigan Innovation Fund coalition will enable implementation of a cohesive statewide strategy to accelerate the scaled growth of Michigan’s participation in the innovation economy by supporting the success of startup founders as well as capital providers and other ecosystem partners who support them on their journey,” said Jim Baker, senior associate vice president for research and innovation at Michigan Technological University and managing director of the Michigan Outdoor Innovation Fund.
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