LANSING – Four Michigan technology startups have each secured $425,000 in investment funding and are headed for a spring showdown in which one will win another $1 million — bringing the PitchMI champion’s total investment to $1.425 million.
But the competition represents something bigger for Michigan: an effort to solve one of the persistent problems facing the state’s entrepreneurs — finding enough money to turn promising technology into a growing company without having to look elsewhere for the capital needed to scale.
Michigan has world-class research universities, engineering talent and technology expertise. What it doesn’t have is anything close to the enormous pools of venture capital available in California, New York and Massachusetts.
That matters because where startups find their money can influence where they build their companies, hire workers and establish long-term business relationships.
PitchMI is one piece of a broader Michigan effort to build a funding ladder that can take startups from early commercialization assistance through angel investment and eventually into larger venture-capital rounds.
The four companies advancing to the 2027 PitchMI Championship are Common Vector Robotics of Detroit, Motmot of Detroit, OmegaCool of Ann Arbor and Ollivate of Detroit.
Together, they represent sectors where Michigan already has significant expertise or is trying to build it: defense and autonomous systems, artificial intelligence and infrastructure, advanced manufacturing and healthcare technology.
$1.7 Million Already Invested
The four companies have already received a combined $1.7 million through PitchMI.
The semifinal awards were originally expected to be $250,000 each. Additional investment pushed each award to $425,000.
A $500,000 statewide co-investment from Anchor Up Ventures, Kalamazoo Forward Ventures, JM Longyear and ID Ventures increased the four prizes to $375,000 each.
Traverse City-based 20Fathoms subsequently added another $200,000 across the four winners, bringing each investment to $425,000.
The finalists will meet again in spring 2027, when one will receive another $1 million.
That company will leave PitchMI with $1.425 million in total investment.
The increased awards also illustrate an important part of Michigan’s startup strategy: combining public support with additional investment capital rather than expecting government programs alone to finance young companies.
Michigan’s Startup Funding Challenge
Michigan has a venture-capital industry, but it operates on a much smaller scale than the country’s largest investment centers.
Michigan companies raised about $1.49 billion across 185 venture-capital deals in 2025, according to PitchBook and the National Venture Capital Association.
California companies attracted more than $191 billion. New York attracted more than $30 billion and Massachusetts more than $16 billion.
Illinois attracted about $2.64 billion, while neighboring Ohio received about $1.2 billion.
Michigan’s total was up from approximately $1.07 billion in 2024, but the enormous difference between Michigan and the country’s largest venture markets illustrates the competition entrepreneurs face when they need substantial amounts of capital.
A startup may be able to develop technology in Michigan with relatively little money. Scaling it can be a different matter.
Manufacturing products, hiring engineers and salespeople, obtaining regulatory approvals, expanding production and entering national or international markets can require millions — and sometimes tens of millions — of dollars.
When sufficient capital isn’t available close to home, entrepreneurs may seek investors in larger venture markets.
An out-of-state investment doesn’t automatically mean a company will leave Michigan. But building stronger local sources of capital can help Michigan retain relationships with growing companies and improve the chances that future expansion, employees and economic activity remain here.
The stakes go beyond keeping a corporate address in Michigan.
If a promising startup grows elsewhere, Michigan can lose potential high-paying jobs, intellectual property, suppliers, tax revenue and the economic activity generated as a young company becomes a larger employer.
Michigan Is Building a Startup Funding Ladder
Understanding Michigan’s strategy requires distinguishing among SmartZones, angel investors and venture-capital firms.
They aren’t the same thing, and they generally become involved at different stages of a company’s development.
Michigan currently has 20 SmartZones around the state through a program supported by the Michigan Economic Development Corporation.
SmartZones and their affiliated business accelerators help technology entrepreneurs develop businesses and commercialize technology. Services can include mentoring, feasibility studies, business planning, entrepreneurial training, market analysis and technology assessments.
Some programs also connect qualifying startups with funding or pay for specialized services needed to reach commercialization milestones.
MEDC’s Business Accelerator Fund, for example, operates through participating accelerators in the SmartZone network.
The objective is often to move a young company far enough along that private investors are willing to take the next risk.
What’s the Difference Between SmartZones, Angels and Venture Capital?
SmartZones and economic-development programs: These generally provide business-development and commercialization assistance rather than operating like conventional private investors. Depending on the program, assistance can include mentoring, technical services, grants, investment programs and introductions to investors.
Angel investors: Angels typically invest their own money in young companies. They frequently invest at an earlier stage than institutional venture-capital firms and take substantial risk in exchange for an ownership stake.
Angel capital can help a startup finish a prototype, conduct market testing, hire initial employees or demonstrate that customers will pay for its technology.
Venture capital: VC firms generally invest money from professionally managed investment funds. They seek companies capable of rapid growth and potentially large financial returns.
VC investments can reach millions or tens of millions of dollars as companies expand. In exchange, venture investors receive equity and can become involved in company strategy, governance and future financing.
A successful Michigan startup may encounter all three.
A SmartZone or accelerator can help turn technology into a viable company. Angel investors can supply early private capital. Venture funds can provide larger investments required for rapid expansion.
The problem comes when one of those rungs is missing.
Michigan Puts $60 Million Behind Innovation
Michigan has also made a much larger financial commitment to strengthening the early-stage investment system.
The Michigan Innovation Fund received a $60 million state appropriation designed to strengthen Michigan’s innovation ecosystem through evergreen venture funds, startup investment competitions and entrepreneurial support programs.
In 2025, $52.8 million was allocated to existing and emerging evergreen venture funds.
Recipients included Ann Arbor SPARK, Invest Detroit Ventures, the University of Michigan Accelerate Blue Fund, the Michigan State University Research Foundation, Western Michigan University’s Biosciences Research and Commercialization Center, InvestUP, 20Fathoms and Grand Valley Research Corporation.
An evergreen fund can reinvest returns from successful investments into future startups, allowing public dollars potentially to support multiple generations of companies rather than being spent only once.
The Michigan Innovation Fund also supports startup competitions, including PitchMI.
That connects the state’s broader investment strategy directly to the four companies now competing for another $1 million.
MEDC Vice President of Entrepreneurship and Innovation Alison Todak described PitchMI as part of that strategy.
“PitchMI is open to Michigan-based startups only, because the startups being built here are world-class. We are betting on our own. They are worthy of that bet,” Todak said.
She called the Michigan Innovation Fund “a public stake in innovation” intended to contribute to Michigan’s long-term economic prosperity.
Meet Michigan’s Four PitchMI Finalists
Common Vector Robotics — Detroit
CEO and founder Arnold Kadiu’s company develops rugged autonomous ground robots for critical operations on and off the battlefield. The company develops key components in-house and is building robotic platforms designed to operate in demanding environments.
Common Vector Robotics won the Defense & Aerospace semifinal Sept. 15 in Grand Rapids.
Motmot — Detroit
CEO and co-founder Elliot Smith’s company develops autonomous underwater robots that inspect active municipal water mains without requiring costly and disruptive excavation.
The robots collect information utilities can use to identify risks and prioritize infrastructure repairs.
Motmot won the AI & Software semifinal Sept. 22 in Kalamazoo.
OmegaCool — Ann Arbor
CEO and co-founder Joey Mullick’s company develops advanced metalworking fluids and fluid-management services intended to improve machining performance, extend equipment life and reduce waste.
OmegaCool won the Advanced Manufacturing, Materials & Outdoors semifinal Sept. 24 in Marquette.
Company President Jim Burton said the investment will help OmegaCool scale manufacturing.
Ollivate — Detroit
Co-founders April Olson and Josh Olson are developing a gamified healthcare education platform that turns board preparation, continuing education and professional credentialing into shorter, science-backed learning experiences.
Ollivate won the Healthcare & Life Sciences semifinal Oct. 1 in Detroit.
Josh Olson directly connected the investment with Michigan employment.
“This funding will allow us to put money back into the Michigan market, so we can hire people and do things here in Michigan and give back to the community,” Olson said.
The Bigger Test Comes After PitchMI
Hundreds of Michigan startups applied for this year’s PitchMI competition. Twenty were selected for four industry semifinals, and four remain.
One will collect another $1 million next spring.
But the larger measure of success will come years later.
Did these companies attract additional private investment?
Did they expand?
Did they hire Michigan workers?
And did they remain in Michigan as they grew?
Those questions get to the heart of Michigan’s startup-capital challenge.
Michigan can produce promising technologies and companies. But creating a startup here doesn’t guarantee that its next financing round — or its future growth — will occur here.
As startups grow, their need for capital grows with them.
Michigan therefore isn’t simply competing with California, New York, Massachusetts and other states for venture-capital dollars. It is competing to retain the companies, intellectual property and high-paying jobs those investments can help create.
SmartZones, angel investors, venture funds, the $60 million Michigan Innovation Fund and programs such as PitchMI represent different pieces of an effort to build a stronger financing ladder inside Michigan.
PitchMI has provided four promising companies with a significant infusion of capital.
The bigger challenge is making sure that when a Michigan startup needs its next $1 million — or eventually its next $10 million or $50 million — it doesn’t have to leave Michigan to find it.
