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Division of Research & Innovation

Office for Technology Commercialization

Funding resources

What does it take financially to start a company? Where does the money come from? According to the Kauffman Foundation, the majority of start up companies open their doors with less than $50,000 in start up capital. The funds come from a variety of sources including personal assets of the founders, friends, and family. Federal grant programs can fund hundreds of thousands of dollars to advance its commercial interests. The State of Michigan offers financial support for university start ups through a number of programs.  Bank loans account for some start up capital, while formal venture capital funding accounts for small amounts of funding for early stage start ups. Below is information about a number of programs that you might find helpful. If you have questions or do not find the specific information you are looking for contact the Technology Commercialization Office for assistance.

State of Michigan

Loans

  • SBA-Small Business Association
  • Banking Institutions
    •  Receivables financing
    •  Equipment Leasing
    •  Residential Real Estate Loans
    • Commercial Real Estate Loans
    • Asset Based Loans
    • Sale Lease Back
    • Note Financing

Federal grants

The Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) grant programs, sponsored by several United States Government agencies, are excellent sources of funding for start-up companies. For detailed information on these programs, visit https://techtransfer.wayne.edu/techtransfer/entrepreneurs/sbir-sttr-grant.

  • SBIR/STTR grant assistance program (subsidized by the State of Michigan through its Strategic Fund) is available through BBCetc.

Angel and venture capital funding

  • A Guide to Seed Fundraising provides an overview of how companies obtain early funding. Although software-focused, the article provides a digestible overview of the process and many links to other resources.
  • The Michigan Angel Community is an effort to accelerate the growth of the angel investor population in Michigan as well as investment into Michigan companies. The website contains links to the more than 15 angel groups across the State.
  • The Michigan Venture Capital Association is a trade organization representing the venture community. Its website lists its members, including those from out of state that have activity in Michigan.

Other resources