Two Minnesota-based entrepreneurial support organizations, both within and outside of the Twin Cities, have been awarded federal grants to further innovation and economic growth in the state.
Forge North, an initiative of Greater MSP to boost the state’s startups, and Red Wing Ignite, a Red Wing-based innovation hub that supports entrepreneurs and startups throughout 11 counties in southeast Minnesota, both received the funding through a program of the U.S. Department of Commerce’s Economic Development Administration, according to an announcement made this week.
That the two organizations received federal funding, "shows that there's entrepreneurship and entrepreneurial support that's vibrant and active all over our state," Matt Lewis, vice president of strategic initiatives for Greater MSP, said in an interview.
The EDA’s Build to Scale program provides annual grants to organizations to fuel entrepreneurship by providing access to support and startup capital. In addition to the federal funds provided to Forge North and Red Wing Ignite, nearly 50 other organizations across the country were also awarded grant money, totaling $47 million.
Forge North received $300,000 in federal funding to support the initiative's existing project called the Angel Activation Campaign. Launched in 2019, Forge North is a coalition of Twin Cities organizations that look to boost the area’s small business and startup ecosystem. It now includes 130 startups, investment firms, entrepreneurial support organizations, corporations and other entities.
The new funding will help the initiative engage new angel investors, provide cohort-based learning opportunities for 50 angels of color and women angels through its partnership with TechTown Detroit and expand angel-investing events, like Angel Fest. It is intended to spur more than $3 million in investment for 75 Minnesota startups, the EDA said.
“The Angel Activation Campaign is a movement,” Mickayla Rosard, who leads the campaign as a Forge North fellow (and who is head of platform for Groove Capital,) said in a Forge North post about the new funding. “We are changing the conversations, perceptions, and local culture around angel investing. In doing so, we are breaking down barriers, expanding who participates, and equipping individuals to be more savvy investors.”
Red Wing Ignite received $2 million in federal funding for its project called Accelerating Rural Entrepreneurs in Southeast Minnesota. With the funds, the hub intends to fuel regional coordination and overcome barriers to entry for rural and diverse founders, a description by EDA shows. The hub will also launch an accelerator to fuel growth of tech startups in the region, spanning an 11-county region in southeast Minnesota. Founded in 2013, Red Wing Ignite had previously received a grant through EDA in 2019.
“It’s a huge win for our region and we are excited for this opportunity to further ignite, launch, and accelerate entrepreneurial ideas and innovation in southeast Minnesota,” Stacy Nimmo, executive director of Red Wing Ignite, said in a press release.
Red Wing Ignite secured an additional $2 million for the program through a local match, backed by Xcel Energy Inc., Jones Family Foundation, Goodhue County and the Southern Minnesota Initiative Foundation, according to its press release. Forge North committed just over $300,000 for its local match of the funds toward its project, Lewis said.
