Baltimore technology company Fearless’ startup incubator Hutch will nearly double its number of portfolio companies thanks to more than $1 million in new funding.
A $661,725 grant from the U.S. Economic Development Administration will be matched with local funds and will increase the number of portfolio companies at Hutch from 25 to 45 by 2025. The matching funds come from acombination of money from Fearless and the Baltimore Development Corp., the city's quasi-public economic development agency and a long-time supporter of the incubator, said Stephanie Chin, Hutch program manager. Along with the financial help, the BDC will gather metrics around economic impact that is required by the EDA. The BDC will also help startups access loan programs, tax incentives and other government resources, said Colin Tarbert, president and CEO of the BDC.
The grant is part of the federal government's Build to Scale program to accelerate technology entrepreneurship.
“This grant from the EDA is an example of the types of funding we are trying to attract in Baltimore to support more entrepreneurs of color and provide them with the resources needed to build and scale successful businesses in the city,” Tarbert said in a press release.
Hutch is an incubator focused on helping underrepresented founders learn how to enter the lucrative government contracting market. Underrepresented founders often struggle to gain access to the venture capital investments and bank loans white founders receive. Hutch aims to create a more level playing field in part by giving entrepreneurs access to a wide network of other people in the technology field.
“We've had companies who've said, 'I'm running my business and it's all trial by error, but I don't know if I'm doing it the right way. I don't have somebody that I can bounce ideas off of, or a community of like minded folks that I can tap into,'" Chin said
The incubator has 20 portfolio companies that are owned by people of color or women. Along with access to mentorship, Hutch companies are able to work with Fearless on large federal grants. Fearless is currently working with two Hutch portfolio companies, Theta and Lucky Rabbit, on a recent $67 million contract with the Centers for Medicare and Medicaid Services.
“It's creating economic opportunities for entrepreneurs within the Baltimore region and I think that there's a tremendous value-add that comes from that,” Chin said.
The grant will also help Hutch expand beyond its two-year incubator program to create additional initiatives such as bootcamp immersion programs to give entrepreneurs both inside and outside of Hutch in-depth knowledge of branding and other areas. The grant will also go toward financial aid for portfolio businesses so that companies that are based outside of Maryland can attend the monthly in-person meetings at the incubator's headquarters at the Spark Baltimore coworking space at Power Plant Live.
“Especially in working with early stage entrepreneurs and underrepresented entrepreneurs, we know that it's not always possible or feasible for folks to be able to travel up to Baltimore,” Chin said.
Chin said Hutch has added 27 new jobs and generated $2.3 million of new revenue since the incubator was founded in 2019. Notable Hutch success stories include XCell, a company that worked with the White House to help create a more equitable process to distribute federal infrastructure funding.
The expansion of the Hutch incubator comes as the Baltimore startup ecosystem continues to add new opportunities for early stage tech entrepreneurs. Johns Hopkins University and Howard University are partnering with the National Institutes of Health to create an accelerator focused on medical technology. In downtown, Baker Donelson donated a floor at 100 Light Street to use as a small business incubator for 30 companies.
