A Dayton-based economic development organization that fosters and empowers the development and growth of more than 1,000 entrepreneurs annually is significantly expanding capital access programs available to regional entrepreneurs. Recent funding will help the organization further position startup businesses preparing to raise their own capital.
The Entrepreneurs’ Center (EC) recently announced the expansion of its capital access program. The program now totals $800,000 and includes a $400,000 grant from the Economic Development Agency (EDA) through the Build to Scale Capital Challenge program to be implemented over the next three years.
EDA granted awards to 60 organizations under its Build to Scale programs, and the EC is one of 20 organizations to win a Capital Challenge grant.
The EC noted technology-based, high-growth potential startups rely on venture capital to launch and grow. Globally and in Ohio, venture capital funding has decreased significantly since a 2021 peak. According to CB Insights, in Q3 2023, global venture deal volume declined for a 6th straight quarter to its lowest level since 2016, demonstrating the challenge entrepreneurs face when raising capital.
Mike McCann, vice president of Innovation and Engagement at EC, said it is a critical time for startups in the Dayton region and west-central region of Ohio. In years past, the area has hosted significant R&D resources, solid local talent and great success accessing non-dilutive capital programs like Federal Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR), and Ohio Third Frontier’s Technology Validation and Start-up Fund (TVSF) programs.
The result is a growing number of high-quality startups that need all manners of support, including capital.
“Today, the Dayton region lacks enough capital resources to fund these great opportunities,” said Mike McCann, VP of Innovation and Engagement at EC. “With support from EDA, this program will improve entrepreneur capital readiness, expand our EC Angel network, and improve capital access opportunities to better meet this demand.”
The Entrepreneurs’ Center Inc.
Description: a modern economic development organization which empowers main street and technology businesses through complimentary professional services, including business planning, mentoring, training, networking, commercialization and capital investment.
Operating budget 2023: $7.8 million (a 34.4% increase from 2022’s $5.8 million)
Employment: 26
Headquarters: 31 S. Main St. in the downtown Dayton Arcade
With the funding provided, the EC will support entrepreneurs preparing to raise capital by providing targeted training on pitching investors and preparing for a funding transaction. EC will also expand its EC Angel investors network, provide training to recruit new members and offer enhanced programs and support for existing members. Meanwhile, EC will assess the region’s long-term capacity for additional forms of organized capital.
“At EC, we recognize the challenges entrepreneurs face when seeking to build their businesses, not the least of which is accessing investment capital, especially in today’s difficult venture environment,” said Scott Koorndyk, president of EC. “We’re thrilled to grow these programs and networks to expand our entrepreneur and investor support resources in the years to come.”
The recent capital announcement follows the Dayton Business Journal’s recent dive into the region’s startup market and how startups are climbing out of the dreaded Valley of Death, where great ideas go to die. Delve into the full topic with insights from local startups at varied levels from seeking initial funding to multi-million-dollar corporation.
What does the U.S. Economic Development Administration do?
The U.S. Economic Development Administration’s investment policy is designed to establish a foundation for sustainable job growth and the building of durable regional economies throughout the United States. This foundation builds upon two key economic drivers – innovation and regional collaboration.
Innovation is key to global competitiveness, new and better jobs, a resilient economy and the attainment of national economic goals. Regional collaboration is essential for economic recovery because regions are the centers of competition in the new global economy and those that work together to leverage resources and use their strengths to overcome weaknesses will fare better than those that do not.
EDA encourages its partners around the country to develop initiatives that advance new ideas and creative approaches to address rapidly evolving economic conditions.
