The St. Louis County Port Authority has again started making investments in local startups from its Helix Fund after several years of inactivity.
The St. Louis County Port Authority has provided $500,000 in investments made in 2022 and 2023 to two local agriculture technology startups and is currently considering funding another firm, said Beth Noonan of economic development consulting firm CED Solutions, who serves as a contracted employee for the Port Authority.
The investments come after the Port Authority in October 2021 committed $2 million for startup investments to "bridge funding gaps needed to grow early stage companies in the bioscience and tech sectors," Noonan said. The Port Authority makes its startup investments through its Helix Fund, which is not a separate, independent fund, but rather is allocation of funding for bioscience and technology startup investments by the Port Authority. The Port Authority generates revenue from a lease with River City Casino.
Since its launch in 2010, the Helix Fund has invested in nearly 30 startups and two startup funds, providing a total of $2.67 million, Noonan said. Companies backed previously by the Helix Fund have included CoverCress Inc., Benson Hill (NYSE: BHIL) and MediBeacon. Prior to reallocating funds to the Helix Fund in 2021, the Port Authority had not provided funding to a startup since 2017, Noonan said.
The Port Authority’s decision to reactivate the Helix Fund included conducting research that involved asking organizations within St. Louis’ startup economy if they believed an early stage fund was still needed and would fill funding gaps. Noonan said it was a clear response from the organizations that relaunching the Helix Fund would help to advance local bioscience and technology startups. The Helix Fund focuses on co-investing with other investors, such as BioSTL’s BioGenerator, who can help source startups and provide due diligence on investment opportunities.
“The idea is we match up to dollar for dollar to other investors in the St. Louis community,” Noonan said.
Since the $2 million commitment in 2021, the Helix Fund has provided investments to two local agriculture startups: Impetus Agriculture, which is developing pest control products, and agriculture research services firm Solis Agrisciences. Noonan said the Helix Fund is currently considered another investment in an undisclosed company. Potential investments are reviewed by a three-member subcommittee of the Port Authority, the Helix Committee. Its members include Mike Hejna, Amy Hunter and John Maupin.
Noonan said there isn't a specific cap on the size of the Port Authority’s investment to companies, but that it is looking to back early stage companies completing their first or second round of funding. Because the Helix Fund is tied to the St. Louis County Port Authority, it focuses on companies that are based or have significant operations in St. Louis County.
The Port Authority in October 2021 made a two-year commitment when reallocating funds for startups, Noonan said. She said she plans to ask the Helix Committee if it would like to extend that commitment, with formal action anticipated in September or October.
