St. Louis region’s startup community is growing and there are a growing number of opportunities and resources for early-stage startups. Incubators are an excellent way for startups still in development to hone their business plan and scale up before attending their first pitch meeting. This is a continuation of the spotlight series we began in June examining local resources and funding sources available to startups in the area.
The big difference: Incubators vs accelerators
In many ways, an incubator is very similar to an accelerator, but there are key differences between the two business program types. While both provide mentorship and education, along with opportunities for financing, incubators focus on startups still in the idea stage while accelerators concentrate on scaling growth for a company that already exists.
Benefits of joining a startup incubator program
Through mentorship and educational opportunities, startup founders are also encouraged to develop their networking skills to make connections with angel investors, venture capital and other experts in their industries that will serve them well down the line when it’s time to fundraise. Those who work in the tech industry can also access top-notch labs, both wet and dry, that come complete with cutting-edge equipment.
As the St. Louis startup community continues to grow, the resources, opportunities and partnerships have grown alongside it. While many incubators have distinct focuses, such as T-REX and the Geospatial Innovation Center, which cater to tech startups, there are other incubator programs and coworking spaces that are dedicated to other types of industries, including Brick City Makes, which offers manufacturing companies light industrial production space and other vital resources a business in its first days will need to ultimately be successful.
St. Louis’ established special innovation districts encourage the advancement of entrepreneurship and give early-stage companies the push they need to launch. These growing districts add to St. Louis’ overall value by encouraging new business development, workforce training and redevelopment projects that add job opportunities, as well as commercial and residential spaces. Two of the largest innovation zones include the St. Louis Cortex, home to entities such as Square One and the Cambridge Innovation Center, and 39 North, which is host to several facilities including the Donald Danforth Plant Science Center, BRDG Park, Bayer Crop Science, the Yield Lab and the Helix Center Biotech Incubator.
Startup incubator programs available at the Cortex
Square One
The Cortex Entrepreneur Training flagship, Square One, also referred to as SQ1, provides hands-on training programs that support first-time business owners and early-stage startups developing an advanced manufacturing/consumer product, bioscience or information technology enterprise. There are two programs available for qualifying founders: SQ1 Ignite and SQ1 Boot Camp.
SQ1 Ignite is a four-week program that’s designed to help founders get a jump start on their business model validation process and emphasizes the “business model canvas.” Participants in the program will be challenged to form and test their assumptions about their business idea, helping them identify the next steps in their plan to launch their business. Founders will also be introduced to the local entrepreneur/startup support ecosystem and connected with mentors with the industry experience needed to propel these future business leaders to the next stage in their development.
SQ1 Boot Camp is a longer program, held over a 10-week period and covering 50 hours of material. The program features a mix of formal instruction and hands-on learning in addition to networking and mentoring from sector experts who lead the advanced manufacturing, bioscience and information technology tracks. Over the course of the program, participants will work on a two-minute elevator pitch, a business model canvas, financial statements, a pitch deck and a planning checklist.
Cambridge Innovation Center – St. Louis
Another partner with the Cortex Innovation Community, the Cambridge Innovation Center – St. Louis was the first expansion site outside of the original Cambridge, Massachusetts, location. The facility includes shared and private workspaces as well as biological and chemical laboratory space that includes access to vital lab equipment. Startups whose goal is to improve their community, or even the world, can also apply to become part of the Social Impact Cohort. It includes a six-month membership, free space, community networking and programming. Members of the cohort are eligible for a year of discounted membership once the six-months-free period ends.
Incubator program by 39 North
Helix Center Biotech Incubator
There are a number of facilities that make up the campus of 39 North, but for early-stage AGTech startups, the Helix Center Biotech Incubator provides an excellent atmosphere for them to develop and prepare for launch. Clients receive access to 33,000 square feet of affordable dry and wet labs in addition to office space. Financing and collaboration opportunities are also available. Through maintaining and encouraging a collaborative setting, the campus supplies the resources needed to help startups accelerate their growth.
T-REX and the Geospatial Innovation Center
An incubator like the Technology Entrepreneur Center Inc (T-REX) is a great starting spot for startups to begin building their enterprise from the floor up. T-REX provides coworking office space, Wi-Fi as well as programing and resources designed to assist early-stage companies stay focused on moving their business forward to the next stage.
It’s more than just a coworking space. While T-REX doesn’t directly provide startups with funding, it connects them to organizations that support early-stage entrepreneurship and the development of tech talent. T-REX’s partnerships include Arch Grants, Cultivation Capital, ITEN (Innovation, Technology, & Entrepreneur Network), SixThirty and more.
T-REX also houses the Geospatial Innovation Center, powered by Bayer. The research and collaboration center is specifically for geospatial innovation, technology commercialization and workforce development. Founders have the chance to network with the other, multiple geospatial startups, including established small businesses and large industry partners, while enjoying the events, programs and educational resources available at the center.
Brick City Makes
Startups involved in manufacturing in need of light industrial production space will receive a wealth of other resources when working with Brick City Makes. The private, nonprofit entrepreneurial support organization’s aim is to promote and grow manufacturing revenue and employment across the region. To make this goal a reality, Brick City Makes not only offers office and production space for companies, but also assistance with vital business functions that small companies require for growth: business development, market analysis and new product development. Members will also gain direct access to experts and best-in-class support services from a variety of disciplines in the community space.
Continued investments in the companies, individuals and institutions that support and promote startup culture in St. Louis has the potential to breed a new generation of entrepreneurs. Already the hometown of major business successes such as Enterprise and Build-a-Bear, St. Louis has long been the birthplace of entrepreneurial development. Part of the benefit of having such a robust and healthy community for startups includes increasing access to powerful incubator programs that helps develop great ideas into even greater businesses.
Anders CPAs + Advisors is running a survey targeting startups and startup investors to analyze the St. Louis startup ecosystem. Startups can take the survey here. Funding sources in the startup community can take the investor-side survey here.
Need guidance on next steps with your startup? Anders CPAs + Advisors works with startups and entrepreneurs on their financial needs so they can focus on what they do best. Contact an Anders advisor to discuss your goals and how we can help you achieve them.
Every day at Anders, we serve as a catalyst for those striving to achieve their highest potential and carry this mentality on to our clients and community. Through a collaborative approach and a combination of tax, audit and advisory services, we help our clients achieve their goals.
Kyle Krahl is a manager in forensic, valuation and litigation at Anders with more than 10 years of experience valuing businesses and performing merger and acquisition due diligence. With experience seeing all angles of the financial due diligence process, Krahl is an asset for companies throughout M&A transactions.
