FAQ




ID Ventures, with lead support from the MEDC, has launched the Tech Startup Stabilization Fund (TSSFund) to support Michigan technology startups impacted by the economic downturn caused by the COVID-19 pandemic.


Who is eligible?

We encourage Michigan-based technology startups to apply if they meet all of the following criteria:

  • A technology-based startup company headquartered in Michigan with the majority of employees located in the state

  • Product-oriented, scalable business - not intended for consulting and fee-for-service companies

  • Less than 50 employees (as of April 20th)

  • Prior investment from angel or venture capital sources

  • Demonstrated capital shortfall within 12 months (less than 1 year of runway time)

  • Ability to achieve at least 9-12 months of runway time with funding from the Tech Startup Sustainability Fund and additional funding sources

  • Appropriate product/solution traction for your company’s stage prior to the COVID-19 pandemic, measured by users, revenue, or development progress

  • Long-term funding sustainability plan in place, including developed relationships with investors, or a clear path to profitability within 12 months

  • Matching angel investor and/or VC funds are encouraged

How do you define tech startup?

Technology-based startup companies with the potential for high-growth are eligible to apply for the Tech Startup Stabilization Fund. ID Ventures defines “technology-based startup” as companies building tech-based solutions and products (software, hardware, advanced materials, life sciences), or tech-enabled companies that scale by leveraging technology (e-commerce, marketplaces, etc.).

Note: consulting and fee-for-service companies are not eligible.

What size are awards?

A typical investment from the TSSFund will be between $50 - 100k, enough to extend your company’s runway time by 3-5 months. Actual investment sizes will vary between $20 - 200k based on your company’s stage, sector, runway, and demonstrated funding needs.

How are awards structured?

Investments from the fund will typically be made on industry-standard convertible note documents at reasonable valuation caps/discounts. Our terms will align with other investors in your current funding round if applicable. Other financial instruments (straight loans, equity) will be considered if justified.

What else is required?

If found eligible, we may request the documents below to assist us in further evaluating your company’s fit for the TSSFund and to determine the appropriate funding amount. This is not an exclusive list, and we reserve the right to ask for additional information on a case-by-case basis.

  • Original (pre-COVID) 2020 Budget - month to month

  • Historical financials from 2019 (profit-and-loss/income statement, balance sheet)

  • Current financials (profit-and-loss/income statement, balance sheet)

  • Documents/spreadsheet demonstrating salary/benefit and business-plan adjustments your company has already made to extend runway time, in response to the COVID-19 pandemic

  • 24-month pro-forma forecast and budget from April 2020 (revenue and expense growth)

  • Cap table

  • Documentation on any outstanding company debt or planned debt

  • Prior investment documents (convertible notes, SAFEs, debt, SPA, etc.)

Are matching funds required?

We do not require matching funds, but we highly recommend companies do all they can to raise matching investment by leveraging TSSFund investment. We do, however, require all companies to demonstrate at least 9-12 months of runway time resulting from our investment, and a clear path to future funding or profitability.

What is the timeline?

ID Ventures aims to administer funding from the TSSFund within 2-3 weeks of full application documentation submission, provided a company meets all investment criteria.

When is the deadline?

The initial application window deadline ended at noon on May 1, 2020. Additional application windows may be announced in the future subject to funding availability.

How do I apply?

When application windows are open, requests can be submitted online at https://www.tssfund.com. We may ask for additional information through a document request link in a follow-up email. Note that we are unable to respond to initial applicant inquiries via phone and email, but if you have basic questions or feedback on the items requested in the form, please email us at tssfund@investdetroit.com, and we’ll continue to update the FAQ page with new information.