The Center for Emerging Technologies (CET), a longstanding innovation center within the Cortex innovation district, has dissolved as its own entity in a move that will cut costs and rebrand CET's programming with the Cortex moniker.
The board of CET, which has been wholly owned by Cortex since 2010, in December 2022 chose to stop operating CET as a separate entity. The decision was designed to reduce duplicate costs and better promote CET’s programming around the Cortex brand, said Cortex Innovation Community President and CEO Sam Fiorello.
CET, founded in 1998, had operated as Missouri’s oldest innovation center, based at 20 S. Sarah St. in Cortex’s Central West End footprint. Its flagship program has been Square One, which supports early stage business and first-time entrepreneurs as they launch and grow their startups. Cortex, having wholly owned CET, has supported its operations through funding and staff, and tapped Cambridge Innovation Center to manage the 20 S. Sarah facility.
Fiorello said CET’s decision to cease operations as a separate entity will cut back on duplicate costs between CET and Cortex, including separate tax filings and annual audits. He expected the cost savings will be in the six figures, with plans to direct that savings toward programming focused on entrepreneur training. CET reported revenue in fiscal 2022 of $2.6 million in fiscal 2023, according to its IRS filing. It had expenses of $10.8 million, reporting $7.7 million in expenses related to dissolution and transfer of assets. CET reported revenue of $2.1 million and expenses of $2.8 million in 2021.
The sunsetting of CET will allow Cortex to brand Square One’s programming around its own brand, with Fiorello saying past graduates of CET’s programming hadn’t realized it was offered through Cortex.
“We want to really make sure people understand it’s not just a thing that’s in the district, it is part of Cortex itself,” Fiorello said.
Cortex has rebranded CET’s programming to be called Cortex’s Square One Programs. Earlier this month new Cortex signage was installed at 20 S. Sarah. The building formerly included signage with the CET name. The Square One program includes its bootcamp, designed to help entrepreneurs advance new business and its Ignite program, aimed at helping entrepreneurs craft business concepts. Local companies that are graduates of Square One’s programming include health care company Rezilient, food technology firm GiftAMeal and food social media company Habuyta.
While Cortex is home to startups with high-growth potential and venture funding backing, Fiorello said the Square One programming allows the innovation district the opportunity to help incubate neighborhood-based small businesses, with a focus on training diverse entrepreneurs. Of the 94 2023 graduates from Square One’s programming, 54% were Black, 9% Hispanic and 4% Asian.
“This is a critical main driver of our aspirations to accelerate inclusive economic growth in the region,” Fiorello said.
Cortex budgets about $500,000 annually for its Square One programming. The programming in recent years has been supported with grant funding from the Missouri Technology Corp., including $103,451 in 2023.
Cortex, a nonprofit, reported revenue of $34.9 million and expenses of $8.5 million in fiscal 2022, compared with revenue of $5.3 million and expenses of $7.5 million in 2021.
