A Minnesota startup with big plans appealed to state government for financial help to make parts that charge electric cars in the Twin Cities.
5 INVESTIGATES found the company received hundreds of thousands of dollars despite blowing past a key deadline to outline how it was spending public money.
Representatives for the company, FlexForge, appeared before lawmakers in 2023 asking for $10 million to create more than 160 jobs at its manufacturing facility in Brooklyn Park.
“What we envision is bringing a clean energy hub to Minnesota,” said Jevne Micheau-Cunningham, CEO of FlexForge.
But records obtained by 5 INVESTIGATES show FlexForge LLC was not registered with the Minnesota Secretary of State when it made its funding request and described itself as an established business with about 10 employees.
State Rep. Dave Baker, R-Willmar, said the lack of registration should have raised concerns.
“Normally when you have people come and testify, they are established. They are at least registered,” Baker said.
Despite those questions, lawmakers ultimately approved $1.5 million for the company as part of a broader spending push during the 2023 legislative session, when Democrats controlled the House, Senate and governor’s office.
At the time, the state had a near $18 billion budget surplus.
Key missed deadline
The funding came with reporting requirements. State law required FlexForge to submit information detailing how the money was spent and how many jobs had been created by last December.
The company missed that deadline.
Yet records show the Minnesota Department of Employment and Economic Development, or DEED, continued sending payments to FlexForge, including more than $300,000 after the reporting deadline had passed.
“Somebody’s got to take ownership for this,” Baker said.
Two days after 5 INVESTIGATES contacted DEED about the missed filing, the state received the overdue report – roughly seven months late.
The filing primarily describes the company as one that is still in a design phase. It also appears to provide conflicting information about job creation, listing figures that range from one to six jobs.
FlexForge’s late report says state funding supported approximately 30,000 hours of engineering work used to design multiple products.
In text messages to 5 INVESTIGATES, a company representative urged the station not to pursue the story, writing that “FlexForge-type entrepreneurs should be and are applauded and celebrated. This is important to the healthy future of Minnesota and America.”
When asked for clarity on jobs created, the representative pointed to a table in the report showing a headcount of six in 2025, and four by year’s end.
“We don’t have nearly enough information from that company to give them any credibility,” Baker said. “There are way too many questions. The agency should have seen this.”
Oversight failure
DEED acknowledged shortcomings in its oversight after being contacted by 5 INVESTIGATES.
In an email, the agency said it “should have ensured that FlexForge had submitted its report to the Legislature prior to sending payment.”
DEED described the situation as “rare” that a grantee has to report directly to the legislature and not to the agency – something a spokesperson said they will encourage going forward.
But Sen. Bobby Joe Champion, who authored the legislation, pushed back on the agency’s response, saying “it was not an issue raised at the time this legislation was passed. If the department feels all reports should also be sent to them going forward, I am open to that conversation.”
DEED acknowledged it was responsible for a “historic” amount of funding that year – $1.8 billion in total, roughly 10 times more than normal. Officials said the funding surge required hiring and training additional staff, but maintained they are proud of the agency’s overall response.
For this particular $1.5 million grant, 5 INVESTIGATES was told to stay away from all addresses connected to FlexForge. An email from the company’s CEO said any visits “would be considered trespassing.”
The company maintains that it has not received the full amount of funding from the state originally envisioned and says it will need additional resources from other sources to achieve its long-term job-creation goals.
In its latest report, FlexForge is again seeking more public funding.
Baker said the case highlights broader concerns about how Minnesota evaluates and monitors grant recipients.
“We’re going to have to go back and re-address how we relook at these kinds of grants and who applies and how they apply,” he said.
