Detroit’s $700K Startup Fund Aims to Spark Innovation, Jobs, and Talent Retention

July 29, 2025

Detroit city leaders have launched the $700,000 Detroit Startup Fund to support local entrepreneurs and strengthen the city's tech economy. Announced by Mayor Mike Duggan, City Council President Mary Sheffield, and Detroit Economic Growth Corporation (DEGC) officials, the fund will award 26 grants totaling $700,000 over the next year to help startups scale products and services that can improve city life and economic opportunity. The initiative includes 20 seed grants of $15,000 and six scale grants of $50,000, with specific eligibility requirements including Detroit-based operations and potential civic applications.

Who is affected

Early-stage Detroit-based entrepreneurs and startup founders
Detroit residents who may benefit from improved city services and economic opportunities
The local Detroit economy and business ecosystem
Detroit's tech community, including the 140+ startups at Newlab at Michigan Central
Historically overlooked entrepreneurs who face barriers to traditional funding

What action is being taken

The City of Detroit is launching a $700,000 Detroit Startup Fund to provide grants to local startups
DEGC is administering the program and selecting 26 total grant recipients through two funding rounds
The city has created a dedicated startup website to help entrepreneurs navigate resources
Applications for the first round of funding are currently open through August 25, 2023
The City is allocating $700,000 from its general fund to support the initiative

Why it matters

The fund addresses a persistent hurdle for Detroit startups: access to early-stage capital
It helps retain local talent and encourages entrepreneurs to build their businesses in Detroit
The program is expected to generate more than $1 million in local economic impact
Detroit was ranked as the world's top emerging startup hub in the 2022 Global Startup Ecosystem Report
The initiative creates more inclusive economic opportunities and pathways for startups traditionally overlooked by conventional funding sources

What's next

Thirteen grant recipients will be announced later this year following the first application round
A second application window is scheduled to open in early 2026
Selected startups will use the funding for product development, staffing, customer acquisition, piloting, or other strategic growth efforts
Grant recipients will share performance data with the City and DEGC

Read full article from source: Michigan Chronicle