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
Sizzling startup Video Fizz to represent KC in national Techweek competition
After a sizzling summer, Video Fizz is continuing its hot streak with a growing investment round and a chance to win more funding at a national pitch contest. Founded by Laura Steward, Video Fizz in September won a $50,000 grant as part of the LaunchKC pitch competition. Video Fizz, an app that enables collaboration to…
Listen: How does Kansas City regard failure?
In the entrepreneurial world, the word “failure” takes many definitions. For some entrepreneurs, failure is a badge of honor, while for others it’s taboo. Regardless, failure is a part of reality amongst startups and it’s a topic that’s been examined at length in Kansas City’s entrepreneurial community. KCUR’s Up To Date recently hosted Startland editor-in-chief Bobby Burch, Pipeline Inc.…
Events Preview: Compute Midwest, Shark Tank
There are a boatload of entrepreneurial events hosted in Kansas City on a weekly basis. Whether you’re an entrepreneur, investor, supporter or curious Kansas Citian, we’d recommend these upcoming events for you. WEEKLY EVENT PREVIEW Compute Midwest When: October 22 – 23 Where: Municipal Arena Over a thousand remarkable people from around the globe will converge in…
Lager: Why I quit my cushy job for a broke startup
It’s 4:03 a.m. My bedroom is still dark and the late August heat leaves me little need for a blanket. I lay here wide-awake, arms crossed behind my head on a pillow that’s too thin, while the rest of the world sleeps in deep peacefulness. I hear nothing, save for the wind occasionally singing outside…