Arch Grants, the St. Louis nonprofit that provides equity-free grants to startups, is giving a second round of funding to three of its portfolio companies.
The startup funder said Thursday it is providing $100,000 grants to three of its St. Louis-based portfolio companies through its Growth Grants program, which gives follow-on funding to help previous Arch Grants winners expand locally. Thursday's announcement follows Arch Grants' announcement in November that it had awarded grants to 23 companies through its annual startup competition.
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.
Arch Grants launched its Growth Grants program in 2021 and has used it to provide more than $1.1 million to 12 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. Growth Grants recipients have raised more than $29.5 million in matching funds, according to the nonprofit.
The three startups receiving new Growth Grants are:
- Honeymoon Chocolates: Honeymoon is a maker of healthier chocolate, selling “bean to bar” chocolate that includes no refined sugar and is sweetened using only raw honey. Cameron Loyet, who founded Honeymoon with his wife, Haley, said the company’s new funding will be used to establish a sales team to expand wholesale distribution of its products.
- Inclusively: The technology startup has created a jobs platform that helps companies connect and recruit employees with disabilities, chronic illnesses and military veterans. Sarah Bernard, founder and chief operating officer of Inclusively, said the new Arch Grants funding will allow the startup to continue to pursue growth in the St. Louis region.
- zPods: The firm has created a “sensory-friendly” bed for children with autism and others with sleep issues. George Bailey, founder and president of zPods, said the new grant from Arch Grants will help the company build out inventory, target clinical trials and advance its technology.
“We are thrilled to award these three companies through our Growth Grants program,” said Gabe Angieri, executive director of Arch Grants. “These awardees’ ongoing commitment to growing their businesses in St. Louis will benefit our region by creating new local jobs, expanding manufacturing facilities, and leading innovation in their respective sectors.”
Since its first startup competition in 2012, Arch Grants has provided more than $14 million to 230 companies. The nonprofit says its portfolio companies have created more than 2,750 jobs locally, produced $533 million in revenue and raised more than $640 in follow-on investment.
