In a move aimed at directly supporting early-stage entrepreneurs and fueling Detroit’s growing tech economy, city leaders on Monday unveiled the new $700,000 Detroit Startup Fund. Designed to back Detroit-based startups with capital, visibility, and strategic support, the fund represents a public commitment to cultivating innovation—and keeping talent local.
Mayor Mike Duggan, City Council President Mary Sheffield, and officials from the Detroit Economic Growth Corporation (DEGC) announced the initiative at Newlab at Michigan Central, a hub now home to more than 140 startups. Over 200 members of Detroit’s tech and entrepreneurship community attended the launch.
The fund will award 26 grants to startups over the next year, helping entrepreneurs scale products and services with the potential to improve city life, civic operations, and economic opportunity. City officials estimate the program will generate more than $1 million in local economic impact. Applications for the first round opened Monday and will remain open through August 25 at detroitmi.gov/startup.
“Detroit always has been a city of innovators willing to take risk to create something new. 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,” said Mayor Mike Duggan. “Because we already have so much talent here in Detroit, the Startup Fund also creates another reason for that talent to stay here and be part of something special.”
The fund will be administered by DEGC, which will select 26 total recipients through two rounds of funding. The program will offer 20 seed grants of $15,000 and six scale grants of $50,000. Thirteen grant recipients will be announced later this year, with a second application window scheduled to open in early 2026.
To be eligible, businesses must be Detroit-based or led by a founder building in Detroit and established within the last 10 years. Applicants must be developing a scalable, venture-backable product or service that has potential civic applications or can improve quality of life for city residents. Businesses must also commit to registering as a Detroit-based business and sharing performance data with the City and DEGC.
For the larger $50,000 grants, companies must also demonstrate that they’ve raised at least $100,000 in outside investment over the past 18 months and have a clear path to raising $250,000. Grant funds can be used for product development, staffing, customer acquisition, piloting, or other strategic growth efforts.
Detroit’s startup community has gained national traction in recent years. The 2022 Global Startup Ecosystem Report by Startup Genome ranked Detroit as the world’s top emerging startup hub. The report reflects a wave of investment and infrastructure development across the city, from TechTown and Newlab to the new University of Michigan Center for Innovation and a precision medicine campus planned for the former Gratiot jail site.
Still, access to early-stage capital remains a persistent hurdle for startups hoping to grow.
“Detroit has a rich legacy of driving innovation and economic mobility. This fund will give founders the capital and visibility needed to grow and create high-quality jobs right here at home,” said Justin Onwenu, the City of Detroit’s first Director of Entrepreneurship and Economic Opportunity. “By lowering barriers and expanding access, we’re driving economic mobility for years to come.”
The Startup Fund builds on ongoing efforts by the City and DEGC to expand the tech ecosystem and ensure that new economic growth reaches more residents.
“This program will create a ripple effect across our local economy,” said Kevin Johnson, President and CEO of the Detroit Economic Growth Corporation. “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 program was allocated through the City’s general fund, with support from both Mayor Duggan’s administration and the City Council.
“City Council is proud to be a partner in driving tremendous business growth, investment, and opportunity in our city,” said City Council President Mary Sheffield. “This $700,000 investment is a bold step toward creating a more inclusive and equitable economy that centers Detroiters. By opening doors for our entrepreneurs, we are investing directly in the talent, resilience, and creativity of our people. These kinds of resources help grow our population, retain our homegrown talent, and strengthen the local economy. When we invest in Detroiters, we invest in the future of our city.”
Local leaders in the tech and innovation community say the fund offers more than just dollars—it sends a message about who gets to participate in Detroit’s economic future.
“This fund isn’t just about money. It’s about validation and creating pathways for startups that traditional funding sources often overlooked,” said Black Tech Saturdays Co-Founder and Johnnie Turnage. “Detroit and Michigan have incredible talent, but we’ve often lacked the early-stage support that helps startups create jobs. This fund is a monumental step in helping change that.”
In addition to the grant program, the city has launched a dedicated startup website to help entrepreneurs navigate resources, access technical assistance, and tap into local accelerators and investor networks. The site also serves as the application portal for the new fund, and applications for Round One are now open through August 25 at detroitmi.gov/startup.
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