Funds offered for early-stage tech startups
LANSING, Mich. — The Michigan Economic Development Corporation announced Thursday creation of a $3 million Tech Startup Stabilization Fund to help early-stage tech operations in the state that are being affected by the COVID-19 outbreak.
Administered by ID Ventures, the Tech Startup Stabilization Fund will provide companies direct investments or loans that can be converted into equity. Investment and loan sizes are expected to range from $20,000 to $100,000.
Startups can go to TSSFund.com to learn more. The fund will prioritize early-stage companies that meet this criteria —
— Technology-based companies headquartered in Michigan with the majority of employees in the state;
— Early-stage technology and innovation-based businesses with fewer than 50 employees;
— Strong team that has proven execution capability;
— Prior investment from angel or venture capital sources, with matching angel and or/venture capital funds encouraged;
— Pre-COVID-19, was on path for next round of funding, with favorable relationships in place;
— Strong customer value proposition;
— Conveys that company can survive and thrive post-crisis.
Other resources for businesses across Michigan to assist in recovering from COVID-19-related losses can be found at michiganbusiness.org/covid19.