UpSurge Baltimore has set a goal of bringing 10 new startup accelerators to Baltimore by 2025, with the hope that these programs will both support companies currently in the region and attract new ones.
The organization, which was started last year with the goal of making Baltimore a top-tier tech city with inclusiveness and equity in mind, has already helped attract two accelerators, the Techstars Equitech accelerator, and the STANLEY+Techstars accelerator, CEO Jamie McDonald said. Of the 21 companies in the two accelerators, 19 were from outside of the Baltimore region. Five of them are now moving to Baltimore, with four international companies involved in the programs working to make Baltimore a U.S. headquarters or talent hub.
The hope is that 20%-30% of the companies participating in an accelerator from outside the area would build a permeant presence in Baltimore, McDonald said. The combination of new companies being created in the city by locals, as well as companies moving in from outside the area, could create a critical mass that would encourage outside investors to travel to Baltimore to meet with startups.
The focus on accelerators is a key strategy for Baltimore to grow quickly compared to other cities, McDonald said.
“It's a key piece of how we build this equitech ecosystem in 10 years instead of 30 years,” she said.
There are several models for creating an accelerator, McDonald said. One strategy that UpSurge hopes to use in Baltimore is a corporate development model, where a large company sponsors a startup accelerator to fuel innovation. McDonald is currently trying to determine which companies in Baltimore could be a strong partner to help create a corporate development accelerator.
"Those companies are already here and they typically already have some level of innovation or corporate development effort in place," McDonald said.
The Stanley Black & Decker accelerator is a good example of that type of accelerator, since the program targets startups focusing on electrification technology that could impact consumer and industrial products created by the manufacturing company.
The national accelerators brought to the city by UpSurge would also serve as an important next step for local companies. For example, a startup that has already participated in a local program such as the Emerging Technology Centers' AccelerateBaltimore, could then apply to become part of a Techstars accelerator, McDonald said.
Beyond trying to attract more accelerators, UpSurge Baltimore is also working to aid founders in other ways, such as compiling a variety of resources for founders in a "Building in Baltimore" guide. The organization also worked with local firms Fearless and EcoMap Technologies to create Baltimore Tech Connect, a portal for those looking to learn more about the tech infrastructure.
Baltimore already has much of the infrastructure to attract companies, McDonald said, but there has been a lack of alignment and vision.
“Our issue is not that the infrastructure doesn't exist,” she said. “We have all the pieces for a building but we haven't had an architect.”
But while the infrastructure may be there, UpSurge's push to attract more companies to the region comes amid national concern about the future of tech startups, with a decline in venture capital funding so far in 2022, and overall decline in the Nasdaq by 23.36% since last year. However, McDonald believes that Baltimore is somewhat protected from the slowdown.
Most tech companies in Baltimore are in the early stages of venture funding, where investors can deploy smaller amounts of capital to companies that have not yet proven their revenue model. This differs from late stage companies that need to show continued growth in order to earn much larger amounts of capital investments.
"Cities that have more later-stage companies are going to feel the hit of the slowdown harder than a city like Baltimore," McDonald said.
