As the Michigan Legislature debates the FY2025 state budget, a proposal is on the table to eliminate the $15.7 million Entrepreneurship & Innovation (E&I) line item — a critical source of support for Michigan’s startup ecosystem and a key driver of the venture capital pipeline across the state.
This modest investment fuels proven programs like Michigan Translational Research & Commercialization (MTRAC), Tech Transfer Network (T3N), Michigan SmartZones and micro-grants – all of which help early-stage founders launch companies, bring research to market, and attract follow-on capital.
💥 How This Impacts Venture Capital in Michigan:
- Shrinks the startup pipeline: Without programs like MTRAC and T3N, fewer technologies and founders make it to investment readiness — drying up our start-up deal flow.
- Undermines the Michigan Innovation Fund (MIF): The state-backed fund was designed to work alongside VCs, but it depends on a healthy front-end of startup development. Cutting E&I would starve the MIF pipeline.
- Reduces investable talent: T3N and other initiatives retain entrepreneurial talent in Michigan. Without them, startup teams falter and scale becomes harder or leave the state for more supportive ecosystems.
- Hurts access and inclusion: The current E&I budget supports underserved founders and regions. Cuts here widen the equity gap in entrepreneurship.
- Reduces capital investment: These programs generate approximately $600 million in annual capital investment, fueling job creation, business growth, and strong returns across Michigan.
📊 The Impact at a Glance:
- 70+ spinouts and $500M+ private investment via MTRAC
- 193 startups and $1.6B in outside capital via T3N
- 6,400 businesses assisted and 2,300 new jobs via SmartZone infrastructure
- $600M+ capital investment per year from advisory and Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) support
If this budget is eliminated, Michigan will take a significant step backward — just as peer states like Ohio are ramping up support.
✅ What You Can Do:
We urge you to contact your state legislators and ask them to restore the $15.7M E&I budget line.
👉 Find Your legislator, CLICK HERE
✉️ CLICK HERE to view a sample email you can send to your legislators.
Your voice as a venture investor, entrepreneur, or ecosystem leader matters. Let’s make sure Lansing understands: Innovation isn’t optional — it’s foundational to Michigan’s future.