City of Detroit launches Startup Fund

Detroit officials have launched a $700,000 Detroit Startup Fund initiative aimed at strengthening the city’s technology sector by providing grants to Detroit-based tech startups over the next year. The Detroit Startup Fund was announced at NewLab, a hub in Corktown near downtown Detroit, hosting over 140 startups. The fund will distribute a total of 26 grants to support early-stage and scaling companies. This marks the city’s first round of funding through the program.

The grants will consist of 20 seed grants of $15,000 each and six scale grants of $50,000 each. The goal is to create jobs, encourage innovation that benefits Detroit residents, and retain local entrepreneurial talent. The first group of 13 grant recipients will be announced in late 2025, with a second round opening in early 2026.

To qualify for the funding, applicants must be startups or founders based in Detroit, established within the last 10 years, with scalable business models offering products or services that can improve city services or quality of life for Detroit residents. Additionally, scale grant applicants need to have secured at least $100,000 in external investment and raised a minimum of $250,000 in the past 18 months. Applications opened this week and will close on August 25. Interested startups can apply online through the city’s official website.

Grant recipients may use the funds for various growth activities, including product development, hiring, market testing, and customer acquisition. However, awardees are also required to commit to becoming certified Detroit-based businesses and share progress updates with city officials and the Detroit Economic Growth Corporation (DEGC).

In 2022, Startup Genome named Detroit’s as the world’s top emerging startup in its annual Global Startup Ecosystem Report. Since then, the city has invested heavily in innovation infrastructure, including initiatives at Michigan Central station and the University of Michigan’s Center for Innovation, but many early-stage companies still face challenges in accessing funding. 

Local leaders have emphasized the fund’s role in creating a more inclusive economy. “This $700,000 investment is a bold step toward creating a more inclusive and equitable economy that centers Detroiters,” said City Council President Mary Sheffield, noting that such funding helps to grow the population, retain homegrown talent, and strengthen the local economy.

Detroit’s first Director of Entrepreneurship and Economic Opportunity, Justin Onwenu, highlighted the significance of the fund, in providing local founders with capital and visibility to help grow businesses and create high-quality jobs. Kevin Johnson, President and CEO of the DEGC, added ‘“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.”

Local entrepreneurship advocates have welcomed the initiative. Johnnie Turnage, co-founder of Black Tech Saturdays, described the fund as a crucial step toward providing validation and pathways for startups that traditional funding sources have overlooked, particularly in underrepresented communities.

This funding effort is part of a broader strategy by the City of Detroit and DEGC to further bolster the city’s nascent tech economy and stimulate sustainable economic development. The allocation for the Detroit Startup Fund comes from the city’s general fund budget, reflecting municipal commitment to nurturing innovation as a vehicle for economic mobility and community revitalization.