Launch Minnesota Innovation Grant
Minnesota Department of Employment and Economic Development (DEED) — Launch Minnesota
Up to $35,000
MN startup innovation grant
Launch Minnesota's flagship reimbursement grant for innovative, technology-based Minnesota startups. Administered by DEED, the Innovation Grant reimburses qualifying R&D and direct business expenses on a 2:1 cost-share basis (the startup spends $2 to receive $1) up to a maximum of $35,000 per company. It is designed for early-stage companies — less than 10 years old, having raised under $1 million in equity — whose primary activity is innovative technology, an innovative business model, or an innovative product. A separate Launch Minnesota SBIR/STTR Matching Grant exists for federal SBIR/STTR awardees; this record covers the Business Operations Innovation Grant track.
- Funding type
- Grant
- Level
- State
- Amount range
- Up to $35,000
- Realistic amount
- Awards vary with documented eligible spend up to the $35,000 ceiling. Many awardees receive …
- Deadline
- Periodic — application windows track annual appropriation; confirm the open cycle on mn.gov/deed before applying (the live window could not be verified on the official source).
- Status
- between-intakes
- States
- Minnesota
- Payment model
- reimbursement
Who qualifies
- Primary business activity must be in innovative technology, an innovative business model, or an innovative product
- Business operations and headquarters must be located in Minnesota
- Business must not have been in operation for more than 10 years
- Business must have raised less than $1,000,000 in equity financing
- Business must not have previously received a Launch Minnesota Innovation Grant
- Expenses must be incurred in Minnesota to be reimbursable
- Ineligible business categories include real estate development, insurance, banking, lending, lobbying, political consulting, IT consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, and professional services (attorneys, accountants, business consultants, physicians, health care consultants), as well as locally-based retail and lifestyle businesses
What it covers
Eligible expenses
- Research and development expenses incurred in Minnesota
- Direct business expenses incurred in Minnesota
- Wages of non-owner employees (excluding salaries/wages of owners holding 20% or more and their family members)
- Purchase of technical assistance and services
Ineligible expenses
- Salaries or wages of owners holding 20% or more of the business, and their family members
- Expenses incurred outside Minnesota
- Expenses unrelated to the innovative product/technology/business activity
How to apply
-
1
Confirm eligibility against the Launch Minnesota checklist
Verify the company is innovative-technology focused, headquartered and operating in Minnesota, under 10 years old, has raised under $1M in equity, and is not in an excluded industry. Review the official eligibility checklist on mn.gov/deed.
~2 hrs
-
2
Assemble the application and supporting documentation
Prepare a description of the innovative product/technology/business model, a budget of the eligible Minnesota-incurred R&D and direct business expenses you intend to claim, and proof of business formation and Minnesota location. Because reimbursement is 2:1, plan your eligible spend so you can document roughly $70,000 to capture the full $35,000.
~8 hrs
-
3
Submit during the open cycle
Submit through the Launch Minnesota grant portal during an open application window (a July 31, 2026 deadline was noted for the current cycle). Confirm the active window on the DEED site, as cycles track annual appropriation.
~1 hrs
-
4
Incur expenses and submit reimbursement documentation
After award, incur eligible Minnesota expenses, then submit receipts/invoices and proof of payment to draw the 2:1 reimbursement. Owner wages (for 20%+ owners and their family members) are not reimbursable; non-owner employee wages are.
~4 hrs
The 2:1 reimbursement structure is the key constraint, not the application itself: you must front the spend and document it, so the grant favors companies that already have (or can commit) roughly $70,000 of qualifying Minnesota expense. Line up your eligible R&D and non-owner payroll spend before applying so you can actually draw the full $35,000 rather than leaving grant dollars on the table.
Deadline & timing
Launch Minnesota accepts Innovation Grant applications on a rolling/periodic basis with published review deadlines (a July 31, 2026 deadline was noted for the current cycle). Funding is appropriated per fiscal year, so application windows track available appropriation. Confirm the open cycle on mn.gov/deed before applying.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.