Investments- Michigan Pre-Seed Capital Fund
Equity investment, up to $250,000. Must be matched dollar-for-dollar with outside investments. Same terms as other investors making up that match funding, or a convertible note if the match is a Phase II SBIR grant.
Skip Simms, senior vice president of Ann Arbor SPARK, explains the process of applying for Pre-Seed funding in the video below.
Equity investment or convertible note
Up to $250,000, matched dollar-for-dollar with outside investments.
Same terms as investors providing the match funding
Startups that are past concept development, and that are raising outside capital
Use of Funds
Expenses that help commercialize your product, or grow your business
Business location anywhere in Michigan. If outside Ann Arbor region, contact your closest SmartZone.
Criteria for all startups
Industry – Technology-driven company, especially with defensible intellectual property.
Early Stage – Less than $1 million outside investment, and less than $1 million in 12-month trailing revenue
Presence in Michigan – Company is registered with the State of Michigan, and at least half of employees physically work in Michigan
Follow-up – Quarterly reports during a funding engagement, and annual surveys
How to apply
- If your business is within Ann Arbor region, please contact Funding@AnnArborUSA.org to get started. If your business is located outside of Washtenaw County, contact your closest SmartZone.
- Once you start the application process, you will be asked to submit the following:
- Business plan (20-30 pgs); you can use our template or score sheet for guidance; include how you will use your investment funds
- Pro-forma financials, with a 5-year forecast, including cash flow statement, income statement and current balance sheet
- Ensure that you’ve addressed the items in our due diligence checklist; do not submit materials on the list
- A SPARK employee will contact you within 2-3 days to determine which program is the right fit
- A SPARK employee will work with you to revise your materials as needed
After first meeting with a SPARK employee, it can take a few weeks to submit a completed application, depending on the amount of revisions needed in the business plan and proposal.
After the application is submitted, it will take 4-6 weeks for the investment review committee to provide a recommendation.
Before signing an investment, we will complete a background check on all founders.