Arch Grants, the St. Louis nonprofit that awards equity-free grants to startups, is doubling down on its investment in four of its portfolio companies.
The nonprofit said Wednesday it is giving follow-on funding to four St. Louis-based startups through its Growth Grants program, which gives fresh capital to Arch Grants’ portfolio companies. Three of the companies will receive $100,000 and the fourth, Flipstik, is being provided $50,000.
Arch Grants launched its Growth Grants program in 2021 and has used it to provide additional capital to 10 of its previous investments. While the follow-on grants are nondilutive, Arch Grants requires startups to match the funding at least 2 to 1 through outside funding sources.
The Growth Grants program is an extension of Arch Grants’ annual startup competition, which gives $75,000 grants to early-stage companies. To be eligible for Growth Grants funding, previous Arch Grants winners must still be operating in St. Louis and pledge to remain here for at least two years if awarded the follow-on capital. Growth Grants winners are chosen by a volunteer panel.
The four startups receiving Growth Grants include:
- Flipstik: The phone accessory startup, which appeared on ABC reality TV show “Shark Tank” in 2020, has developed a patented, reusable adhesive that attaches to a cell phone’s cover and can serve as a kickstand as well as be used to stick a phone to a flat surface. Founder and CEO Akeem Shannon said the follow-on funding from Arch Grants will bring “limited run and promotional product production” to St. Louis, beginning this summer.
- Generation Mindful: The company creates tools, toys and programs to nurture “emotional intelligence.” Founder and CEO Suzanne Tucker said the additional funding will help her startup expand into a new sales channel and improve its website as it expands its staff with two new sales and marketing employees.
- HomeTraq: The startup created an app designed to help users in the process of purchasing a home. Co-founder and CEO Mark Gorman said the new funding will bolster its homebuying services while also aiding in its efforts to expand into new cities.
- TCARE: TCARE provides an evidence-based analytics program that allows social workers, care managers and care coordinators to help family members and caregivers responsible for seniors. CEO Ali Ahmadi said the company’s funding will help with hiring St. Louis-area employees and relocation to a larger office locally to accolade its growth.
“We are thrilled to award these four companies through the Growth Grants program,” said Gabe Angieri, Arch Grants’ executive director. “Since receiving their initial Arch Grants award, each of these awardees demonstrated to our volunteer judge panel their commitment to continue growing in St. Louis and their ability to scale even further with Arch Grants’ follow-on funding.”
Since its first startup competition in 2012, Arch Grants has funded more than 200 companies. It has provided more than $11 million to companies through its annual startup competition and Growth Grants program. The nonprofit says its portfolio companies have created more than 2,600 jobs locally, produced $517 million in revenue and raised more than $620 in follow-on investment.
