Stem cell therapies have shown promise in promoting recovery from a stroke but have been limited by poor stem cell survival and differentiation in cell cultures. We have developed a hydrogel that has the consistency of Jello and provides the cells with a soft substrate on which to grow that also contains growth factors that are easy for cells to absorb. The hydrogel promotes better transplant stem cell survival and differentiation to adult cells that are in significant numbers and ready to use therapeutically.