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Rural Ideas Network receives EDA grant to support rural entrepreneurs in Iowa

October 3, 2022

The Rural Ideas Network, in partnership with the East Central Iowa Council of Governments, has been awarded a $412,105 grant from the Economic Development Administration (EDA) to expand its efforts to support rural entrepreneurs across Iowa.

“We are thrilled to partner with the EDA and ECICOG to scale our proven rural entrepreneurship support services to new communities across Iowa. Communities that invest in supporting local entrepreneurs become more resilient and have a higher quality of life for all residents,” said Jordan DeGree, Rural Ideas Network director in a news release.

Since 2020, the Rural Ideas Network has piloted two services geared at supporting entrepreneurs in rural communities – a coworking accelerator program and a virtual Business Lab service.

Through the accelerator program, the Rural Ideas Network staff helps local community partners plan, launch, and operate coworking spaces that serve as innovation and entrepreneurship hubs within the community. To date, five rural coworking spaces have been launched across Iowa and one in Oakes, North Dakota through the accelerator program.

The Business Lab provides a plug & play virtual solution that makes it easier for rural communities to offer robust support to local businesses. Each Business Lab offers a full menu of programs, including one-on-one business coaching, peer learning opportunities, and technical assistance and training opportunities. More than 50 partners have launched Business Labs across five states, giving over 700,000 rural residents access to Business Lab services.

This EDA grant will enable the Rural Ideas Network to scale its capacity to serve new communities in Iowa.

As part of the grant, the Rural Ideas Network will provide low or no-cost services to a select number of rural communities that are interested in opening a coworking space or bringing a Business Lab to their community. In the coming months, a Request for Proposals will be available to communities interested in applying for the scholarships.

Tags: Rural Ideas Network

Rural Ideas Network receives EDA grant to support rural entrepreneurs in Iowa | 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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