The Tampa Bay Wave accelerator has won a $396,000 three-year federal grant as part of the U.S. Economic Development Administration’s Build to Scale Program.
The program gives funding to strengthen and grow the startup economy of regions with developing investment scenes. Tampa Bay Wave’s funding comes from a part of the program called the Capital Challenge, which seeks to “form a fund to deploy” as a way to grow a region’s diverse, equity-based funding and a “demonstrated opportunity” for innovative and technology investments.
Tampa Bay Wave plans to use the funding to employ a team to raise a $10 million fund called the Tampa Bay Innovation Seed Fund, according to a release. It plans to draw 80 investors and focus on 25 to 30 “emerging high-growth startups.” It will also host events, an online investor portal and a podcast to attract funding.
The grant is awarded alongside $397,000 in matching funding from local partners like Hillsborough County, the city of Tampa and KnowBe4.
“These funds will enable Tampa Bay Wave to increase access to capital for early-stage tech startups in the region, particularly those in cybersecurity, fintech and healthtech industries, thereby helping foster the region’s national reputation for innovation and talent across these verticals,” Linda Olson, CEO of Tampa Bay Wave, said in a prepared statement.
It was the only program in Florida to receive the federal funding designation and the only one in the Southeast to receive the Capital Challenge funding. Other cities in South Carolina, Alabama, North Carolina and Georgia received funding from the Venture Challenge, which seeks to build and scale programs instead of forming and deploying a fund. There were 60 recipients total in the 2023 awardees, according to a release.
“It’s because of the critical support provided by Wave and its community partnerships that the Tampa Bay area has grown into an innovation hub,” U.S. Rep. Kathy Castor said in a prepared statement. “I look forward to seeing this strong grant funding support the creation of good-paying jobs across the region while increasing our global competitiveness and keeping us at the forefront of innovation.”
The new EDA money comes after Tampa lost millions in funding after applying to be designated a cybersecurity tech hub.
While the recent snub was a loss for Tampa, the new grant is the fifth awarded from the EDA, according to a release. In 2012, a $1 million grant launched the program, and in 2022, it won $2 million from the “Build to Scale” program to establish “cybersecurity, finance and health care” programs and foster the tech scene.
