One startup has created a sustainable, off-grid glamping platform. The platform can be planted in the most-remote areas and remain fully energy sufficient, leaving no impact on the environment.
Another is transforming the marine industry with cutting-edge electric propulsion systems. The ultra-compact e-propulsion systems seamlessly integrate into many styles of boats -- curtailing noise, emission and pollution.
And yet another provides a safe and secure charging platform for e-mobility, offering charging and locking for personally owned and private-owned e-scooters and bikes.
A world somewhere in the future? Not at all. It’s the present with an eye on an evolving outdoor recreation industry – Michigan’s.
These innovative startups are among the latest investments by the Michigan Outdoor Innovation Fund, a $3 million investment fund supported by the Michigan Economic Development Corporation. The investment fund is managed by InvestUP, a private sector-led economic development organization focused on driving economic prosperity across the Upper Peninsula.
These new investments – five in all – mark the second round of startup funding that is moving the needle in the outdoor recreation industry. The awards ranged from $50,000 to $250,000. To date, the Fund has invested nearly $1 million of its $3 million in capital.
The fund doles out investments on a rolling basis; with the latest batch, the fund has now invested in eight Michigan companies.
“These new investments into five extraordinary and groundbreaking startups will enable them to continue to grow and scale by creating jobs, reaching new customers and expanding their product offering,” says Jim Baker, managing director of the Michigan Outdoor Innovation Fund.
Launched in 2023, the
Michigan Outdoor Innovation Fund aims to bolster Michigan’s outdoor recreation industry by investing in early-stage startups that demonstrate strong potential for innovation, and are commercializing cutting-edge technologies that enhance the enjoyment, sustainability or accessibility to the outdoor recreation industry.
“The fund focuses on companies commercializing innovations that increase the enjoyability, accessibility, and/or sustainability of outdoor experiences,” Baker says. “Commercialization of these innovations will directly benefit people who enjoy the outdoors and will also benefit businesses that serve those people who travel to the U.P. to participation in outdoor activities.”
Nationally, the outdoor recreation economy grew by a healthy 11.8 percent in 2022. In Michigan, outdoor recreation brought $12.4 billion in value-added economic impact, and the sector includes nearly 120,000 jobs (a growth of 7.4 percent year over year) in a wide range of occupations that require various skills including design, manufacturing, retail sales and hospitality.
“The great outdoors are Michigan’s most important resource, and it is critical that we continue to invest in companies that are advancing efforts to foster a greater appreciation for outdoor recreation and the myriad of industries that it touches, including technology, industry, natural resources and tourism,” says Marty Fittante, who is CEO of InvestUP.
Baker says the investment analysis includes a number of considerations, most notably: Evidence of traction in the marketplace; impact of the funding from (the innovation fund) in achieving notable milestones toward profitability and scaled growth; nature and size of other investments committed to the financing round; path toward financial exit through acquisition or other mechanism.
The startups receiving funding:
Electric Outdoors, Inc., is building sustainable off-grid camping solutions. Its camping platform, known as the EO Canopy, is fully powered by sustainable sources, making energy, water, waste handling, satellite internet and EV charging available completely off the grid. In
a pilot program in the U.P. and other states, the company is testing the self-contained unit.
“We are incredibly excited to be partnering with the Michigan Outdoor Innovation Fund in this first phase of our fundraising,” says Josef Hjelmaker, CEO and founder of Electric Outdoors, based in Southfield. “This strategic partnership aligns perfectly with the introduction of our sellable pilot units to the market and will continue to feed our data-gathering, research and testing efforts, preparing us for scale.”
Ann Arbor-based
Student Athlete Score has developed a platform designed to help student athletes discover opportunities and get noticed. The platform enables universities and brands to discover and connect with emerging talent, while providing coaches with advanced tools for efficient team and roster management.
“Our team is incredibly grateful for the Michigan Outdoor Innovation Fund’s support — not only financially, but also through their invaluable network,” says Brent Wall, who is CEO of Student Athlete Score. “They’ve been with us every step of the way, truly believing in Student Athlete Score’s future success.”
Hercules Electric Mobility of Novi is transforming the marine industry with cutting-edge electric propulsion systems. Their ultra-compact e-propulsion sterndrive systems seamlessly integrate into many different styles of boats, requiring minimal modifications. The new systems help reduce noise, emissions and pollution.
"Michigan has an amazing outdoor recreation industry, and the Michigan Outdoor Innovation Fund is putting capital resources to work by supporting unique outdoor related technology businesses and encouraging new entrepreneurs to build their recreation related businesses right here in Michigan,” says Hercules Electric Mobility CEO James Breyer.
KHUMUTE offers a safe and secure charging platform for e-mobility, providing charging and locking for personally owned and private fleet e-scooters and e-bikes. Its charging hubs prioritize safety, using advanced technology and powerful features to ensure reliable and efficient charging, and ensure robust security. The hubs also seamlessly connect to 4G cellular networks, enabling advanced in-app monitoring and data functionality.
“The Michigan Outdoor Innovation Fund’s mission is strongly aligned with our outdoor e-mobility charging platform,” says Sherwin Prior, CEO of KUHMUTE, based in Flint. “The entire Michigan Outdoor Innovation Fund team has been a real value-added investor for us.”
LIVAQOne of Detroit-based LIVAQ's electric off-road vehicles.LIVAQ is an innovative electric ORV startup in Detroit. The company aims to make a huge cultural shift in the off-roading vehicle industry. The company has created a new level of freedom and adrenaline boost with its electric vehicles "in which clean technology and nature merge in perfect harmony."
Future investments from the Michigan Outdoor Innovation Fund will be announced over the coming months. The fund's advisory board includes stakeholders such as Innovate Marquette SmartZone CEO Joe Thiel and organizations like Michigan Technological University.
Interested companies and organizations are encouraged to visit michiganoutdoorfund.com or contact the Fund’s Managing Director, Jim Baker, by emailing jim.baker@michiganoutdoorfund.com.