Nonprofit entrepreneurial support organization Activation Capital is pumping $725,000 into the Richmond startup ecosystem with a pair of grants.
A total of $500,000 was awarded to Startup Virginia, a local startup incubator based out of the 1717 Innovation Center, and $225,000 is headed to programming and regulatory support for the newly created Health Innovation Consortium.
The grants are supported through Activation's Ecosystem Direct Investment Fund, which was created in December 2017 and has awarded a combined $2 million to ecosystem support organizations.
The program invests in organizations – for profit companies and nonprofits – who support the same ecosystem gaps that Activation does. Those include Richmond's reputation as a startup hub, coordinating small business resources and supporting innovation.
“In this new economy, it is vital we continue to provide support to the acceleration of advanced-technology companies in Virginia," Activation Capital President and CEO Carrie Roth said in a statement.
Startup Virginia, which had previously received funding from Activation, has more than tripled membership since moving into 1717 in March 2018. It's also a 2019 Inno on Fire winner.
"Their record of early success is a main driver in our decision for continued support of their programming and startup growth,” Roth said.
The Health Innovation Consortium, led by Virginia Commonwealth University, is focused on providing early-stage resources and programming to health-related companies. It looks to partner with the Richmond business community to eliminate hurdles in the development and commercialization process.
“The support provided by Activation Capital will allow us to expand our support to those inventors and founders with innovations that can improve health,” VCU Ventures Director Nicky Monk said in a statement.
Activation has plans to invest in itself as well.
The nonprofit recently announced that its Virginia Bio+Tech Park, a 34-acre downtown campus that hosts about 70 businesses and research organizations, will add a 100,000-square-foot building to house budding startups and more established biotech companies.
The Bio+Tech Park has “graduated” several companies that eventually outgrew its facilities, like medical product companies Kaléo and Cupron. Those move-outs are part of the impetus behind the new building – an effort to keep successful startups in town beyond their early stages.
