About this programme
Launch Minnesota Innovation Grants were a state grant programme run by the Minnesota Department of Employment and Economic Development (DEED) for early-stage technology and innovation-model startups headquartered in Minnesota. The programme was created by the 2019 Minnesota legislature (Minn. Stat. § 116J.8751) and operated from fiscal year 2020 through fiscal year 2025.
Innovation Grants reimbursed Minnesota business expenses for research and development, direct business costs, and the purchase of technical assistance or services. They came in two forms: Business Operations Grants, open to qualifying Minnesota startups generally, and SBIR/STTR Matching Grants, aimed specifically at companies that had already won a federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) award.
As of the FY25 Launch Minnesota Annual Report (dated January 8, 2026, an official DEED document), state funding for the programme was discontinued at the end of FY25 and DEED confirms it "no longer offers Innovation Grants or Education Grants." DEED's Office of Small Business and Innovation (OSBI) continues other small-business ecosystem work, including the Small Business Assistance Partnership Grant Program, but the Innovation Grant itself is not currently open and has no announced relaunch date.
Because the programme is closed, this entry exists as a reference for businesses researching Minnesota's innovation-funding history (or evaluating whether to build around it) rather than as an active application guide. Anyone considering Minnesota expansion should treat this as historical context, not a current funding source, and should check DEED's current small-business programme list directly for what has replaced it.
How it works
Business Operations Grants: qualifying Minnesota startups could receive up to $35,000, subject to a 1:1 private-funding match requirement. An applicant could receive one Business Operations Grant.
SBIR/STTR Matching Grants: aimed at Minnesota businesses that had already won a federal SBIR/STTR Phase 1 or Phase 2 award. Awards followed a sliding scale tied to the size of the federal award, up to $35,000 for a Phase 1 match and up to $50,000 for a Phase 2 match. An applicant could receive one SBIR/STTR Matching Grant per biennium, and up to two SBIR/STTR Matching Grants total alongside one Business Operations Grant.
Funding source: the Minnesota Legislature allocated $1.5 million to Innovation Grants for the FY24-FY25 biennium. Across the full FY20-FY25 life of the programme, DEED reports $9.7 million awarded across 383 individual grants to 287 Minnesota companies — $7.1 million across 272 Business Operations Grants and $2.3 million across 78 SBIR/STTR Matching Grants.
Business Operations Grants were matched 100% by private funding from grantees; SBIR/STTR Matching Grant recipients brought in more than $50 million in federal SBIR/STTR awards alongside the state match.
Who can apply
Business Operations Grants (as the programme operated): the applicant's primary business activity had to be an innovative technology, business model, or product, with business operations and headquarters located in Minnesota.
SBIR/STTR Matching Grants required: registration with MNSBIR, Inc.'s SBIR/STTR Catalyst program; status as a federal SBIR/STTR first-time Phase 1 or Phase 2 awardee after July 1, 2022; a federal award made on or after July 1, 2022 with a minimum of 120 days remaining on the project period at the time of application; and business operations and headquarters located in Minnesota.
These are the eligibility rules as documented for the programme while it was funded (FY20-FY25). They are not currently applicable to any open application, since DEED has confirmed the programme no longer accepts applications.
Frequently asked
Is the Launch Minnesota Innovation Grant still accepting applications?
No. DEED's official FY25 Launch Minnesota Annual Report (dated January 8, 2026) states that funding for the programme was discontinued at the end of FY25 and that Launch Minnesota "no longer offers Innovation Grants or Education Grants." There is no current application window.
Why was the programme discontinued?
DEED's annual report attributes it to the end of legislative funding at the close of FY25, not to a policy decision to end the programme's mission. The report notes DEED remains engaged with Launch Minnesota's partners and the startup ecosystem to determine the programme's future direction, but as of the report date there was no definitive relaunch or transition date.
How much could a business have received under the old programme?
Business Operations Grants went up to $35,000 with a 1:1 private match requirement. SBIR/STTR Matching Grants went up to $35,000 for a federal Phase 1 match and up to $50,000 for a federal Phase 2 match, based on a sliding scale against the size of the federal award.
Who ran the programme and under what authority?
The Minnesota Department of Employment and Economic Development (DEED) administered Launch Minnesota under Minn. Stat. § 116J.8751, enacted in the 2019 legislative session. The Launch Minnesota Advisory Board — a mix of private-sector, government, and higher-education members — advised on grant awards and strategy until it stopped meeting at the end of FY25.
Is there a replacement programme for Minnesota startups?
DEED's Office of Small Business and Innovation (OSBI) continues broader small-business ecosystem support, including the Small Business Assistance Partnership Grant Program, and DEED's Small Business Assistance Office offers navigation services. Neither is a direct successor to the Innovation Grant's cash-award mechanic; a business should confirm current DEED programme offerings directly rather than assume continuity.
What did the money get used for while the programme was active?
Innovation Grants reimbursed Minnesota business expenses for research and development, direct business costs, and the purchase of technical assistance or services. They could not be used outside Minnesota-incurred expenses.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.