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Iowa organizations receive funding to launch ‘Iowa Go-To-Market program’

September 24, 2020

Three Iowa organizations—Iowa Innovation Corp, Iowa State University Startup Factory and VentureNet Iowa—have received a $525,472 grant from the U.S. Economic Development Administration’s 2020 Venture Challenge program to launch the Iowa Go-To-Market (G2M) program.

The funding will support the G2M project team in seeking to address two gaps in the Iowa innovation ecosystem. First, a shortage of follow-on support programs for entrepreneurs who have completed one of the growing number of accelerator programs in the state. Second, a lack of resources that facilitate connection of entrepreneurs and startups with the many services they need as they develop.

The Iowa G2M Program will consist of two components:

  • An Iowa G2M Accelerator program will be established to provide support for commercial product development and fundraising needs through advanced training in sales, marketing, corporate development, and finance.
  • An online resource guide focusing on the needs of high-tech startups will be developed and deployed as a means through which entrepreneurs can connect with providers across Iowa.

Initial rollout of the online resource guide is intended for late 2020. The project partners intend to launch the new accelerator program in early 2021 with an application process to be announced soon.

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Iowa organizations receive funding to launch 'Iowa Go-To-Market program' | 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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