The TechEd Podcast The Rise of State-Backed VC: Michigan’s Bet on Emerging Entrepreneurs - Pete Martin, MSU Research Foundation and Alison Todak, MEDC
With states stepping directly into the venture capital arena, a major shift is underway in how early-stage companies are funded—and where the next generation of innovation will be built.
In this episode of The TechEd Podcast, host Matt Kirchner dives into this emerging movement with Pete Martin, Director of Portfolio Management at the MSU Research Foundation, and Alison Todak, Vice President of Entrepreneurship & Innovation at the Michigan Economic Development Corporation. Together, they unpack why states like Michigan are deploying public capital into startups, how PitchMI became one of the largest pitch competitions in the country, and what this means for founders, investors, educators, and the broader innovation economy.
From filling early-stage capital gaps to catalyzing private investment, Michigan is using public VC models to strengthen its entrepreneurial ecosystem—and the results are showing. Pete and Alison detail the strategy behind PitchMI, the sectors driving the next decade of growth, the role of universities in spinning out new technologies, and how public and private capital partners are increasingly collaborating rather than competing.
Listen to learn:
- Why states are stepping into early-stage VC and where private capital is falling short
- How PitchMI became a $2M competition drawing 375 statewide applicants
- The sectors Michigan is betting on—from mobility to clean tech to AI and health innovation
- Why founding teams matter more than anything else at the pre-seed stage
- How public VC and private VC now work together to accelerate growth rather than compete
3 Big Takeaways from this Episode:
1. States are stepping into early-stage VC because private capital isn’t meeting the needs of pre-seed founders. Michigan’s earliest-stage companies often start in a funding vacuum, and state-backed dollars are designed to close that first-capital gap. The PitchMI model shows how public investment can de-risk companies enough for private VCs to participate later.
2. PitchMI is creating a statewide pipeline of founders, companies, and investors. The competition drew 375 applicants in two weeks and activated partners across smart zones, universities, investors, and the private sector. Even companies that didn’t win are already raising capital, hiring talent, and gaining visibility through the program.
3. Public and private VC are becoming collaborators in building regional innovation economies. Founders backed by public funds gain access to non-dilutive programs, state networks, and industry connections, while private firms gain earlier access to high-potential deals. This shared model is shaping how capital formation and startup ecosystems will evolve over the next decade.
Resources in this Episode:
- Learn more about PitchMI: https://msufoundation.org/pitchmi/
Find more on the episode page: https://techedpodcast.com/msuresearch/
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