We Create KC report: Startup investment soared to $540M in 2017
April 6, 2018 | Tommy Felts
A startling statistic for those who think capital merely flies over the Midwest: Kansas City saw a 69 percent increase in startup investment from 2016 to 2017, according to KCSourceLink’s We Create KC report.
All told, early-stage businesses classified by KCSourceLink as startups — typically defined as those with 20 or fewer employees — nabbed about $540 million in 2017 (compared to $319 million in 2016), the study said.
Check out the full We Create KC report here
Such totals include traditional investments, as well as funding via Small Business Innovation Research (SBIR), National Institutes of Health (NIH), Launch KC and Digital Sandbox KC grants, KCSourceLink officials said.
“We are trending in the right direction. We see an increase in capital, and we are working to fill holes in funding resources all across the capital continuum,” said Maria Meyers, founder of KCSourceLink and executive director of the UMKC Innovation Center. “Our role at KCSourceLink is to continue to respond to the needs of our entrepreneurs, helping them connect with resources to get deal-ready and connect with the right type of funding at the right time.”
Almost half of the capital resources for early-stage entrepreneurs are new since 2013, according to KCSourceLink’s research.
The startup investment surge dovetails with other data points in the We Create report, including those noting a 290 percent increase in access to capital in the past five years, and an average of 16,376 jobs created annual by first-time (startup) employers in Kansas City.
KCSourceLink’s report not only details such trends, it seeks to illustrate the role the network plays in supporting entrepreneurs through access to capital, the idea pipeline, awareness and corporate engagements. Check out the full report here.
The organization made 9,425 connections via its hotline and email in 2017 (up by more than 2,000 from 2016), according the report, and 70 percent of companies that received funding in 2017 were assisted in some manner by the KCSourceLink network.
“We know that the right connections matter to entrepreneurs and that entrepreneurs matter to Kansas City’s economic growth,” Meyers said. “Having the right resource at your back is critical for the survival and growth of Kansas City startups and small businesses.”
2018 Startups to Watch
stats here
Related Posts on Startland News
Staying transaction-ready in uncertain market conditions
Editor’s note: The perspectives expressed in this commentary are the author’s alone. The following is a paid thought leadership piece from The Ferguson Smith Cohen Group at Morgan Stanley. In the face of market uncertainty, one thing private companies can control is their “transaction-readiness” for an IPO or secondary offering. Discover three things a company…
Zee underscores artists’ need for positive venues; creative powerhouse opens pocket of support
Zahra Briggs developed her creative voice in Kansas City; now she’s setting the stage for fellow independent artists who struggle to find venues that match their vibe — and often have to pay to perform. She’s even creating a version of herself in the metaverse to open access further. A singer and songwriter herself, Briggs — who…
MyAnIML earns NSF funding, patent; now facing new phase of growth with industry validation
Thanks to a recent federal grant — along with a newly secured patent on its first-of-its-kind, proprietary facial recognition tech for cows — MyAnIML is proving its place as a leader within a herd of ag innovation, Shekhar Gupta said. The Overland Park startup received a 250,000 Phase I grant from the National Science Foundation…
KC’s next LGBTQ+ space wants to be more than just a raging club; How this permanent takeover aims to better reflect queer nightlife
Westport nightlife is set for transformation as a sweeping expansion adds seven late-night hotspots to the historic entertainment district — anchored by a new bar catering specifically to Kansas City’s LGBTQ+ community. Q Kansas City — a collaboration with Lance Pierce of Queer Bar Takeover — is expected open its doors in October at 504 Westport…