First Step Fund

First Step Fund is a Detroit-based early-stage micro venture capital fund that serves as the first institutional investor for emerging companies in Southeast Michigan. Launched in 2010 through a partnership between Invest Detroit, TechTown Detroit, and Automation Alley, the fund has made 55 investments and continues to be a critical gateway for founders who are often overlooked by larger institutional VCs.

What sets First Step Fund apart is its focus on first-time founders, particularly those from underrepresented backgrounds. The fund has a stated interest in women-, minority-, and immigrant-owned businesses, making it one of the most intentional investors in inclusive entrepreneurship in the Midwest.

The fund is industry-agnostic, meaning founders across technology, healthcare, advanced manufacturing, and service industries can all find a home here. However, the fund has particular resonance with Detroit's emerging tech scene, backing companies that are reimagining the city's economic future.

Managing Director Adrian Fortino leads the fund, bringing deep roots in the Michigan startup ecosystem. The fund operates out of downtown Detroit and is closely tied to the broader Invest Detroit platform, which provides portfolio companies with access to mentorship, workspace, and follow-on funding opportunities through sister funds like Detroit Innovate.

For founders who are pre-revenue or just beginning to show traction, First Step Fund represents one of the few VC paths that doesn't require extensive operating history or warm introductions to big-name investors. The application process is accessible, and the team is genuinely interested in meeting founders who are building something meaningful in or around Detroit.

First Step Fund exists to fill a critical gap in the Michigan venture capital ecosystem: providing that crucial first check to founders who are often too early for institutional VCs. The fund's thesis centers on potential over pedigree, making it uniquely accessible to first-time founders who have domain expertise but limited fundraising connections.

The fund operates on a simple but powerful principle: the best time to back a founder is when no one else will. By being first into a company, First Step Fund can build long-term relationships and help shape the trajectory of emerging businesses from the earliest stages.

Investments typically range up to $50,000 initially, with the ability to deploy an additional $100,000 in follow-on capital for companies that hit meaningful milestones. This structure allows the fund to be patient and supportive, giving founders room to learn and iterate without the pressure of immediate hyper-growth.

The fund's industry-agnostic approach means it's equally comfortable backing a SaaS startup as it is a hardware company or a healthcare innovation. The primary criteria are founder quality, market opportunity, and the potential for meaningful impact on the local economy.

Southeast Michigan, particularly Detroit, is the geographic focus, though the fund considers investments from across the broader Midwest region. The team is deeply embedded in the local ecosystem, which means they understand the unique challenges and opportunities facing founders building companies in the Motor City.

First Step Fund has maintained a steady investment pace, continuing its mission of being the first institutional check for early-stage companies. The fund's portfolio reflects the diversity of Detroit's emerging startup scene, with investments spanning software, hardware, and service-oriented businesses.

The fund's relationship with Invest Detroit provides deal flow that other funds in the region don't have access to. Through partnerships with TechTown Detroit and Automation Alley, First Step Fund is plugged into the region's accelerator programs, pitch events, and ecosystem gatherings.

Market conditions in the Midwest have been favorable for the fund's thesis. As larger VCs continue to focus on coastal markets and later-stage companies, First Step Fund's niche as a first-check, micro-investment fund has become even more critical for early-stage founders.

The fund has also benefited from the growth of Detroit's startup infrastructure. Organizations like Motor City Match, Build Institute, and the New Economy Initiative have created more pathways for founders to access capital, and First Step Fund is often the entry point for founders who go on to raise larger rounds.

Avegant has pushed the boundaries of virtual retinal display technology, creating immersive visual experiences that have applications in entertainment, training, and enterprise collaboration. The company's approach to personal display technology represents the kind of hard-tech innovation that Detroit can produce.

Sky Specs has found a compelling niche in autonomous drone technology for infrastructure inspection. The company's drones are used to inspect bridges, towers, and other critical infrastructure, providing safer and more efficient inspection services than traditional methods.

Kontextual has built enterprise software that helps companies manage and contextualize their data. The company's platform addresses a real pain point for businesses dealing with large volumes of information, providing tools that make data more actionable.

Varsity News Network has become a trusted resource for high school athletic information, connecting student athletes, coaches, and families across the country. The platform demonstrates how Midwest founders can build nationally-relevant businesses from Detroit roots.

LevelEleven has created business intelligence tools that help companies track and optimize sales performance. The company's focus on actionable metrics reflects the broader trend of data-driven decision making in B2B software.

Larky has built a customer engagement platform that helps financial institutions deepen relationships with their customers through personalized offers and insights. The company operates at the intersection of fintech and consumer experience.

The diversity of First Step Fund's portfolio is a direct reflection of its industry-agnostic thesis. From hard-tech hardware to SaaS platforms, the common thread is exceptional founders building businesses with real market traction.

First Step Fund's investment criteria start with the founding team. The fund looks for founders with deep domain expertise, clear conviction about the problem they're solving, and the resilience to navigate the challenges of early-stage company building. Prior founder experience is helpful but not required.

Market opportunity is evaluated for its size and accessibility. First Step Fund prefers markets that are large enough to support a meaningful business but not so crowded that differentiation is impossible. The team is particularly interested in markets undergoing significant transition or disruption.

Traction, even at the earliest stages, matters. First Step Fund wants to see evidence that customers want what the founder is building. This can be demonstrated through pilot customers, letters of intent, early revenue, or meaningful engagement metrics.

Competitive positioning is assessed honestly. The fund wants to understand what makes a company different and whether that difference can be defended over time. Proprietary technology, unique partnerships, and deep customer relationships are all factors that strengthen a company's competitive position.

Fit within the Detroit ecosystem is a subtle but real factor. First Step Fund is more likely to invest in founders who are genuinely building in Southeast Michigan and who understand the region's unique strengths and challenges. The fund is less interested in companies that are simply looking for cheap overhead and more interested in founders who are committed to the community.

The best way to reach First Step Fund is through the Invest Detroit website or through introductions from ecosystem partners like TechTown Detroit, Automation Alley, or the Michigan Venture Capital Association. These organizations have close relationships with the fund and can provide warm introductions.

Cold submissions are accepted through the Invest Detroit website, though the response rate for cold outreach is lower than for introductions. If pursuing cold outreach, founders should be specific about their connection to Detroit and clear about why First Step Fund is the right fund for their stage and sector.

When preparing your pitch, focus on the problem you're solving and why you're the right team to solve it. First Step Fund invests in people first, so make sure your story centers on founder insight and market understanding, not just product features.

Be ready to discuss your plans for using the capital. First Step Fund likes to see that founders have thought carefully about milestones and have realistic expectations for what can be accomplished with a micro investment. The fund is looking for capital efficiency, not just growth at any cost.

Follow up thoughtfully after your initial outreach. The team is small and engaged with many companies, so persistent but respectful follow-up can help keep your application on the radar. Avoid being pushy, but do communicate significant milestones as you achieve them.

Building a relationship with the broader Invest Detroit ecosystem can pay off even if First Step Fund isn't the right fit for your current round. The network effects of Detroit's startup community mean that the right introduction at the right time can unlock funding opportunities across multiple funds.

Even though First Step Fund invests at the earliest stages, founders should have a solid grasp of their financials. This means understanding your burn rate, runway, and the assumptions underlying your financial projections.

For pre-revenue companies, financial preparedness means having clear milestones that demonstrate progress and a realistic plan for reaching revenue. First Step Fund wants to see that founders understand the path from where they are to where they need to be.

Founders should be prepared to discuss their business model, including how they plan to make money, their pricing strategy, and their customer acquisition approach. Even if these elements are still evolving, having thought them through demonstrates founder readiness.

Unit economics matter even at the earliest stages. If you have any revenue at all, understanding your customer acquisition cost and lifetime value is important. First Step Fund wants to see that founders are building businesses that can eventually stand on their own financially.

Working with a fractional CFO can help founders present their financials in the best possible light. A fractional CFO can help you build projections that are grounded in reality, prepare for investor due diligence, and think through the financial implications of different growth scenarios.

Our team has helped numerous early-stage companies prepare for fundraising, including companies that have gone on to raise from funds like First Step Fund. We understand what micro VCs look for and can help you present your company in the strongest possible light.

Whether you're preparing to pitch First Step Fund or other Midwest investors, having your financials organized and investor-ready sets you apart from the competition. Early-stage investors want to see founder readiness, and financial preparedness is a key component of that.

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