ANN ARBOR – The Business Accelerator Network for Southeast Michigan Tuesday announced a $1 million international business-plan competition aimed at developing very high growth potential, second-stage technology companies in Michigan. Top prize is $500,000. Applications are due Oct. 6.

But there are 16 other cash prizes in nine business categories, plus a top prize of $25,000 in a college student competition in the Accelerate Michigan Innovation Competition. The smallest prize, the Tweet award, is for $5000. Contestants must give their business idea in 140 characters or less.

To enter, however, contestants must meet tough eligibility criteria. The competition is open to any businesses from anywhere around the world. But to receive the prize money, businesses must be resident in Michigan or move to headquarter in Michigan.

What?s more, the winning companies cannot have raised more than $1 million of investment, or have annual revenues of more than $1 million. The winning companies also must be able to get to $20 million in revenues in the next five years in a market with a minimum size of $500 million. Plus the companies must have at least three full-time employees.

The technology must be:

Truly Innovative

Proven (past proof of concept)

At a commercial stage

?This competition is for companies that are further along than just a business idea or plan,? said Michael Finney, president of Ann Arbor SPARK, which is administering what is billed as the world?s largest business-plan competition. ?Winning companies will be near commercialization and doing some serious fund raising. They have to have three full-time employees and have products or services ready to go. They just need this money to launch.?

The competition also will offer in-kind awards of services, staffing and software. The competition targets early stage businesses with proven technology and potential to generate an immediate impact on Michigan?s economy, as well as student concepts with longer-term business viability.

The nine business categories include advanced materials, advanced transportation, alternative energy, homeland security and defense, information technology, life science, medical devices, next generation manufacturing and products and services. A separate track designed specifically for students to submit business concepts is open to any undergraduate or graduate student attending a Michigan university, college or junior college in fall 2010.

The New Economy Initiative for Southeast Michigan granted Ann Arbor SPARK $750,000 to launch the competition on behalf of the Business Accelerator Network, composed of four of the region?s key business accelerators – SPARK, Automation Alley, Macomb-OU INCubator, and Wayne State’s TechTown. Joining the Accelerate Michigan Innovation Competition as partners are the University Research Corridor (Michigan State University, the University of Michigan and Wayne State University) and Business Leaders for Michigan.

Finney said the $750,000 from the NEI is in addition to the $3 million awarded by NEI in June to initially create the Business Accelerator Network.

The remaining $250,000 came from the Michigan PreSeed Fund, a program that pays promising Michigan startups working with one of the state’s Smart Zones grants averaging $50,000. This fund is underwritten by the Michigan Economic Development Corp.

?The Accelerate Michigan Innovation Competition highlights Michigan as the destination for innovation,? said David Egner, executive director of the New Economy Initiative. ?As the first of many projects of the Business Accelerator Network for Southeast Michigan, the competition will help to accelerate the transition of our region to an innovation-based economy. We are pleased that the University Research Corridor and Business Leaders for Michigan are joining with us as partners and support the message that Michigan is an ideal place to launch and grow a new business.?

The competition culminates with a gala awards brunch in Ann Arbor on December 11. The competition concludes with the University of Michigan vs. Michigan State University ?Big Chill? hockey game at Michigan stadium and includes a pre-game tailgate party for all judges and participants.

For all the rules and regulations, click on AccelerateMichigan.Org

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