Innovative drone technology improving healthcare logistics in Michigan.
The Michigan Economic Development Corporation has awarded $2.55 million in state grants to enhance entrepreneurship and drone technology in northern Michigan. 20Fathoms receives $1.6 million to support early-stage companies, while Traverse Connect gains $949,000 to advance drone applications in healthcare. The funding aims to stimulate local economic growth and foster innovation in drone delivery services, particularly for medical supply logistics. Michigan’s plans for a dedicated drone corridor further underscore its commitment to being a leader in advanced drone technology.
Traverse City, Michigan — The Michigan Economic Development Corporation (MEDC) has awarded $2.55 million in state grants aimed at boosting entrepreneurship and advancing drone technology development in northern Michigan. The funding has been allocated to two organizations: 20Fathoms and Traverse Connect.
20Fathoms will receive $1.6 million from the Michigan Innovation Fund (MIF), designed to foster entrepreneurial growth throughout the state. The MIF, signed into law by Governor Gretchen Whitmer in January, boasts a total budget of $60 million to address challenges faced by startups and entrepreneurs in Michigan, particularly the scarcity of early-stage capital.
Keri Amlotte, head of outreach and strategic programming for 20Fathoms, indicated that this funding will be used to create a new investment fund dedicated to providing capital access for early-stage companies in northern Michigan. This initiative aligns with 20Fathoms’ previous efforts, as it had received $7.3 million in government grants in 2023, enabling it to expand its reach and enhance its educational offerings.
In the first half of 2025, 20Fathoms allocated $226,375 in startup capital and conducted training for more than 200 entrepreneurs. These initiatives aim to stimulate local economic growth by empowering new businesses.
Additionally, Traverse Connect will receive $949,000 as part of the Michigan Advanced Air Mobility Initiative, which targets the promotion of uncrewed aircraft systems technologies, specifically for healthcare-related applications. This funding enhances previously secured grants that have supported testing and scaling drone technologies for medical supply deliveries in collaboration with local healthcare organizations, including Munson Healthcare.
Recently, Traverse Connect’s drone delivery project completed over 100 successful flights, primarily aimed at transporting lab samples between healthcare facilities. The newly awarded grant will facilitate the next phases of this drone project, which include testing capabilities for Beyond Visual Line of Sight (BVLOS) operations, allowing for drone navigation without the need for ground observers.
Subsequent phases of the drone initiative aim to automate flight procedures in phase two, while phase three will test multi-mission airspace management with multiple active drones. These efforts are centered around improving healthcare delivery in rural areas, thereby enhancing emergency responsiveness and overall health outcomes.
Michigan is also planning to develop a dedicated drone corridor extending from Alpena to Camp Grayling, which will pave the way for commercial drone delivery services by early 2025. The Federal Aviation Administration (FAA) has greenlit commercial drone operations that can function without ground monitoring, marking a significant step forward in drone technology applications.
Prior investments in Michigan’s advancing drone technology landscape include $10 million allocated to the Michigan Department of Transportation and an additional $7 million earmarked for the establishment of an advanced air mobility park located at Battle Creek Executive Airport. Furthermore, $7.5 million in drone infrastructure funding has been incorporated into the latest state budget.
The successful execution of these drone initiatives is anticipated to cultivate new job opportunities and stimulate further economic activity across the state. With the integration of these advanced technologies, Michigan aims to enhance its position as a leader in both entrepreneurship and drone development.
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