mHUB, Chicago’s manufacturing-tech innovation center, just landed a grant from the federal government to help its members bring their R&D skills to established businesses.
The $1.3 million grant from the U.S. Economic Development Administration, a government agency aimed at encouraging innovation and job creation, will allow mHUB to grow its Product Development Services program, which connects corporate companies to mHUB talent.
Through the program, mHUB engineers, entrepreneurs, designers and developers will get the opportunity to work with small and medium-sized manufacturers. The idea is for mHUB members to help corporations accelerate their in-house R&D efforts and bring new physical products to market faster.
The grant, which will be distributed to mHUB over the next three years, will help mHUB recruit and more than triple its current pool of innovators in the Product Development Services program. mHUB members are expected to work with 120 businesses to develop new “hardtech” physical products.
mHUB is just one of 52 organizations from 36 states that received EDA grants. In total, the EDA provided $35 million in grants to innovation-focused entities.
“mHUB’s continued growth and success is proof that Illinois remains a desirable destination for manufacturing and innovation,” said Illinois Department of Commerce and Economic Opportunity Director Erin Guthrie in a statement. “New federal dollars will allow mHUB to support more Illinois entrepreneurs in realizing their dreams while generating products that keep our state at the forefront for manufacturing and innovation.”
Since launching the Product Development Services program in 2018, mHUB has supported more than 60 small- to-medium businesses and manufacturers, and developed 95 unique physical products.
"Many entrepreneurs fail early because they are forced to choose between building their businesses and securing a steady income stream,” said Haven Allen, mHUB's co-founder and CEO, in a statement. “The model we built provides a revenue stream and runway to get over that hump, while also connecting small and medium-sized manufacturers to much-needed talent to innovate.”
Overall, mHUB has more than 270 active and alumni startups and small businesses in its network.
mHUB is currently offering 50 free memberships for designers, engineers and product development professionals whose careers have been impacted by the Covid-19 pandemic. Membership relief will also be available for three months to women and innovators of color.
To support hardware entrepreneurs in its program, mHUB invests in startups out of its $15 million Accelerate Impact Fund. Announced last year, mHUB is raising the fund over three years and plans to back 60 companies.
