Marquette Tech District Foundation receives $400,000 grant

The Marquette Tech District Foundation has received $400,000 in funding to further grow the 1ST50K Startup Competition offering support to startup companies in Cape Girardeau.

Local individuals and organizations, according to a news release, will match a $200,000 grant from the Missouri Technology Corporation dollar-for-dollar, totaling the $400,000.

The Cape Girardeau Chamber of Commerce, Codefi and private donors are the local organizations providing matching funds, program director and co-founder Chris Carnell said.

Carnell said the initial process for an organization's grant application is processed through the Missouri Technology Corporation -- a public-private collaboration created by the Missouri General Assembly. It strives to cultivate new and emerging technology companies and to promote entrepreneurship through its Missouri Building Entrepreneurial Capacity (MOBEC) program,

Each startup company must explain how its ideas align with MOBEC's goals, and it must also clearly state how it would create a significant economic impact for the state of Missouri, according to Carnell.

"Their goals are to increase the number of high-growth technology companies and startups," Carnell said.

Carnell said the organizations applying for these types of grants are typically universities, research centers, entrepreneurial support organizations and economic development organizations statewide.

Carnell explained that growing Cape Girardeau's technology sector has been in process since 2014, when there was significant need noticed.

"A lot has been done with a little bit of resources," Carnell said. "We knew there was a lack of early-stage capital. There are resources around here when a company has kind of 'grown up,' and needs bigger dollars to grow."

The startup competition began in 2015 when a group of five guys, Carnell said, combined some of their money to "test the concept."

Instead of taking equity from the startups for the investment, Carnell said they know having the money up front is expensive for a business, so they wanted to increase funding accessibility.

According to the news release, Pitch Day -- when finalists in the 1ST50K Startup Competition are invited to Cape Girardeau to "pitch" their business for final consideration -- provides 1ST50k participants with improvements and feedback for their business model and helps them prepare for the future. It also aids in business development services, connection to advisors and a grant, according to 1st50k.org.

"Everyone on the committee and everyone involved with the program is here to help the entrepreneur," Carnell said.

The competition committee is comprised of individuals who help with the selection process, including Glenn Campbell, co-founder of LIDS and Chris Dittmer, director of offering management for IBM's nearly $1 billion mainframe management software business, the statement said.

The competition committee helps "us each round to narrow the process down by doing qualitative and quantitative judging and review," Carnell said. "Then, they come to Pitch Day, and help us vet who the award winner is going to be."

Winners of the competition receive an equity-free $50,000 investment for their business, according to the news release.

"We don't take any ownership, it's not a loan, they don't have to pay it back," Carnell said.

Carnell said the competition committee is "really there just to help."

Bringing the business to Cape Girardeau for at least one year -- one of the requirements of the competition -- includes mentorship from entrepreneurs and investors, additional opportunities for fundraising, network introductions and office space at Codefi, according to the release.

Cornell said the main goal of the organization is to attract and keep innovative companies in Cape Girardeau.

jhartwig@semissourian.com

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