HabitAware, a local tech startup developing a smart awareness tracker called Keen to stop behaviors like hair pulling, nail biting and skin picking, took home the top prize at the Metropolitan Economic Development Association's (Meda) $1 Million Challenge startup competition Wednesday.
As the first place winner in the $1M Challenge, Minneapolis-based HabitAware will receive $400,000 to advance its business. Illerasoft, a Chicago-based company helping hospitals optimize their medical equipment, came in second place and received $200,000. Minneapolis-based Vemos, a startup creating a business management platform for event venues, came in third place and also received $200,000.
The remaining six finalists each received between $100,000 and $125,000 in financing. Just under $1.5 million in total was awarded to the 9 finalists.
Meda's $1 Million Challenge is nearly a year in the making. The organization announced in February 2018 that it received $1 million from Philadelphia-based Opportunity Finance Network to invest in early-stage minority-owned businesses through a "Shark Tank"-like competition.
After soliciting nominations from startups across the country, 19 companies traveled to the Twin Cities during Startup Week in October to present their pitch to a panel of 16 judges. At that time, HabitAware received a $15,000 cash prize as the overall top-scoring entrant and was awarded an additional $10,000 as the top-scoring women-owned business.
After the October competition, the pool of competitors in the $1M challenge was narrowed to 10 finalists. These businesses participated in a "boot camp," which offered mentorship and exposure.
Keen, HabitAware's flagship product, helps users pick up on repetitive motions and vibrates when it catches them in the act. This kind of awareness-building is key to kicking compulsions for good.
HabitAware's performance in the Meda challenge is the latest in a series of big wins for the company within the last year. HabitAware won the 2018 Minnesota Cup in October, beating out 89 other local companies and walking away with combined winnings of more than $80,000.
HabitAware also secured a $300,000 federal research grant from the National Institute of Mental Health to further develop Keen. It was also one of the first 100 startups to receive investment from Backstage Capital, a Los Angeles-based venture capital firm backing minority entrepreneurs. HabitAware capped off 2018 by making Time Magazine's list of Best 2018 Inventions.
