Startup Virginia has been awarded a $100,000 grant from the Virginia Innovation Partnership Corp. through its Regional Innovation Fund. The Richmond-based tech nonprofit, which offers founders and startups mentorship and office space, will use the grant to help its overall operations.
Startup Virginia Executive Director Richard Wintsch said the organization applied for the funding last summer and learned about the award a few months ago. The grant was formally announced last week.
“[The grant] is instrumental to the long-term sustainability of our nonprofit because its objective is to support our operations,” Wintsch said.
In 2022, the VIPC awarded Startup Virginia a $20,000 grant. The money was considered a sponsorship and went toward programming, events and operational costs. The current award is a general allocation and will go toward the organization’s overall budget.
Startup Virginia has a $950,000 annual budget. The organization operates the Michael Wassmer Innovation Center, also called the 1717 building, in Shockoe Bottom. It houses coworking space and offers programs for the entrepreneurial community. Startup Virginia also runs the Idea Factory, which helps aspiring entrepreneurs iterate and validate an idea.
Conaway Haskins, vice president for entrepreneurial ecosystems at the VIPC, said in a statement the grant shows the state supports Startup Virginia’s mission.
“The organization is providing high-value support for innovative company founders in the greater Richmond region by creating insightful connections, building targeted programming and leveraging the dynamic space at 1717,” Haskins said.
The VIPC not only funds entrepreneurial support organizations like Startup Virginia, but its Commonwealth Commercialization Fund is a source of funding for early-stage entrepreneurs. Wintsch said often founders are not ready for angel investments but have a valid idea. They can acquire money through VIPC and the fund.
“We can point them to capital as long as they are doing the right work,” he said.
Startup Virginia has 80 members, and many have advanced beyond the early-startup stage. Wintsch said that shows the strength of the ecosystem in the region and the growth of startups within Startup Virginia.
“Last year we had six Startup Virginia members that closed a Series A [funding round],” Wintsch said. “Organizations like Startup Virginia that help entrepreneurs are really having an impact. Obviously, it is up to the founders first, but I believe this support system is there for any founder no matter what stage they are in.”
He said the shift at the state level toward entrepreneurs is important. Historically, state economic development organizations have focused on attracting large companies.
“I heard this quote the other day, which I love: ‘In economic development, a lot of times you spend time looking for companies to bring into the state, whereas every new business formed in the state is a new headquarters. You have a company automatically in your backyard,’” Wintsch said.
