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Grant funding awarded from the Iowa Economic Development Authority Friday

Iowa Economic Development Authority

August 18, 2017

Three companies that help the Iowa entrepreneurial community received approval for grant funding from the Iowa Economic Development Authority Friday, according to a news release.

According to the release, Northeast Iowa Community College, the Iowa City Area Development Group and the New Bohemian Innovation Collaboration (NewBoCo) were awarded grants from the Entrepreneurial Investment Awards. The program stipulates in order to receive assistance you must offer technical and financial assistance to entrepreneurs and startups looking to create, locate or expand a business in Iowa.

Northeast Community College received $160,000 for their entrepreneurial activities within the Greater Dubuque area.

Iowa City Area Development Group and NewBoCo received $120,000 grants to expand and enhance the Entrepreneurial Mentoring Program and develop the newly created Corridor Angels Network, respectively.

The board awarded the Iowa State University Research Park a $200,000 grant from the EIA program to expand Startup Factory.

Startup Factory is poised to expand its impact through partnerships with community colleges and private universities in northwest Iowa.

Across the state of Iowa, projects were approved in Cedar Rapids, Charles City, Grimes, Marion, Waterloo, Dubuque, Iowa City, Ames and Sioux City, according to the release; $48 million was approved in capital investment in Iowa.

The release came after the Iowa Economic Development Authority held its monthly meeting Friday morning.

Grant funding awarded from the Iowa Economic Development Authority Friday | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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