Venture Capital Growth in Greater Lansing Is No Accident — Here’s Who’s Behind It

By David Washburn, Chief Executive Officer, MSU Research Foundation

VIEWPOINT — A recent benchmarking report by the Lansing Regional Chamber of Commerce and Lansing Economic Area Partnership (LEAP), authored by Anderson Economic Group, compared Greater Lansing to 11 similar communities across the country. The findings were clear: our region is seeing strong growth in innovation and early-stage venture capital investments.

Over the past 10 years, the MSU Research Foundation, a 501(c)(3) nonprofit corporation, has quietly become the primary driver of venture capital activity in mid-Michigan. In 2015, we created Red Cedar Ventures, an early-stage venture fund designed to support very high-risk startup companies built around inventions from Michigan State University students, faculty, and staff.

Early success laid the groundwork for a second fund. In 2020, the Michigan Economic Development Corporation (MEDC) selected us to manage the Michigan Rise Pre-Seed Fund III.

Together, Red Cedar Ventures and Michigan Rise have now deployed over $40 million in early-stage capital. We’ve supported more than 225 Michigan-based companies that have gone on to raise $1.3 billion from over 600 outside investors and create more than 1,800 new jobs. According to PitchBook, a global data provider that tracks private capital markets, Red Cedar Ventures and Michigan Rise are together the second most active early-stage investor in the Midwest over the past three years.

These startups span a range of sectors, including health care, therapeutics, medical devices, energy, mobility, and advanced materials. Companies like Motion Grazer (AI-powered animal health monitoring), EeroQ (quantum computing), Indapta Therapeutics (next-generation cancer and autoimmune treatments), and Great Lakes Crystal Technologies (industrial diamond manufacturing) are tackling global problems, right here in Michigan.

Greater Lansing’s innovation ecosystem continues to gain momentum. MSU Federal Credit Union launched the Reseda Group to invest in early-stage financial technology companies. Delta Dental created the 4100 Group to fund startups in healthcare and financial services. Exit Quotient Ventures, a new venture firm founded here in 2022, recently closed a fund to support high-growth companies.

This growth is exciting, but we can’t take it for granted.

Not all companies that start here stay here. Many are lured to larger markets around the country by deep-pocketed investors, experienced startup operators, or broader pools of technical talent. Other regions — including neighboring states — are aggressively recruiting our top startups. Some of our most promising companies have already left.

If we want to compete, we need to keep building the infrastructure and community that makes it possible for early-stage companies to scale in mid-Michigan. That means continuing to invest — not just capital, but time, attention, and collaboration. We need to embrace a mindset of shared prosperity. Let’s make Greater Lansing not just a place where innovation begins — but a place where it thrives.