Chicago’s manufacturing-tech innovation center mHUB is launching its first accelerator program for early-stage startups making physical tech products, IoT devices and other “hard-tech” equipment.
mHUB Accelerated Incubation is currently taking applications for its first cohort, encouraging startups from across the U.S. to apply. The cohort is expected to begin in March 2021 and barring complications form the Covid-19 pandemic, mHUB expects it to take place in person in Chicago.
This first cohort will also be focused on Industrial Internet of Things, with future programs focusing on other sectors, such as medical devices, connected buildings and homes, communication technologies, smart cities, smart mobility and energy technology.
mHUB will accept eight to 10 startups into each cohort, all of which will be expected to relocate to the Windy City for the duration of the program. The hands-on accelerator will include prototyping guidance, supply chain development and traditional leadership training.
Additionally, each startup accepted into the accelerator will receive a $75,000 cash investment from mHUB’s $15 million Accelerate Impact Fund, in exchange for a 5% equity stake, mHUB said. The fund, being raised over the next three years, aims to back 60 hardware businesses.
At the end of the accelerator, participating teams will pitch their products to the mHUB community, investors and Chicago’s larger tech community. Additional follow-on investments of up to $750,000 from the fund and other co-investment opportunities will be available, mHUB said.
mHUB Accelerated Incubation will be led by Thierry Van Landegem, who joined mHUB in March to begin crafting the accelerator. The original plan was to announce the accelerator in May, but the Covid-19 pandemic postponed those plans, he said.
“mHUB has been extremely successful in their few years of existence in attracting a lot of hard-tech startups,” said Van Landegem, who has a background in product development and corporate innovation. “It became clear that hard-tech startups need more than just prototyping services. They also need help in starting a business and scaling up the business.”
Applicants will be evaluated by a committee of over 20 industry experts and based on 21 distinct criteria, including the diversity of leadership, market opportunity and novelty of product solution. Van Landegem said the committee will be looking for startups that at least have prototypes and a solid product-market fit.
“Hard-tech is all about hardware,” Van Landegem said. “The startups that apply should be really looking at a real problem and a real pain point—something that needs a solution. We don’t want to have startups that are working on a product that nobody wants.”
mHUB now has about 270 members. Throughout the pandemic, mHUB has kept its doors open, allowing members to come into the space and work if they wish. Melissa Lederer, mHUB’s chief experience officer, said the center has been outfitted with Covid-19 safety measures and that everyone who enters is required to wear a mask.
“The secret sauce of mHUB is really the space and the resources that we have here,” Lederer said. “These teams can’t get access to the resources and equipment elsewhere.”
Earlier this month, mHUB landed a $1.3 million grant from the U.S. Economic Development Administration 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.
