Spartan Innovations and Start Garden Report Robust Second Quarter with Sights Set on Continued Expansion Throughout Grand Rapids Market
Partnering Organizations Helped Entrepreneurial Ventures Raise over $35M in Q2
GRAND RAPIDS, Mich., MAY 11, 2022 –– Spartan Innovations, in partnership with Start Garden, reported today at the Grand Rapids SmartZone LDFA board meeting that robust economic development growth continues across the region spurred by high-tech/high-growth companies.
Throughout the second quarter (January 2022 thru March 2022) of the collaboration, Spartan Innovations and Start Garden programs and initiatives have resulted in the following:
New Companies Created: The collaboration helped facilitate the creation of eight new companies.
Funds Raised: During the period, Spartan Innovations and Start Garden assisted companies that have raised over $35M in outside funding.
Venture Growth & Expansion: Supported the strategic growth and expansion of 113 companies and served 137 companies across the state.
Underrepresented Companies: 50% of high-tech companies receiving entrepreneurial support services from Start Garden and Spartan Innovations were from underrepresented populations.
“Spartan Innovations has experienced growth throughout the quarter, gaining traction compared to Q1 numbers,” said Kyle McGregor, Director of Health Innovations at Spartan Innovations. “With the combined forces of the LDFA and the broader ESO community, we have every opportunity to not only work with a broad set of entrepreneurs in West Michigan, but also attract some of the best and brightest to come work in our ecosystem.”
One new company that was formed is Kozi. Kozi, an automated Additional Living Expense vendor serving property-casualty insurance carriers, was among the growth companies highlighted at this month’s LDFA meeting. Since launching, Kozi has greatly expanded their target market. Conversations with governmental and nonprofit agencies revealed the need for efficient temporary housing solutions for families who have been displaced due to emergencies and natural disasters. Kozi is now pursuing contracts with these agencies, as well as property & casualty insurance carriers and their vendors.
“Spartan Innovations, Start Garden, and the Grand Rapids entrepreneurial ecosystem have been involved in every step of our development,” said Craig Sutherland, CEO of Kozi. “From our first whiteboard session to fully vetting the concept, creating a business plan, and building our team, Grand Rapids has continued to offer support. Being one of the S100 winners (2021) allowed Kozi to fully launch and gave our team the momentum and confidence to truly pursue this project.”
Michigan STEM Forward, a statewide program that matches students attending Michigan colleges and universities with internship opportunities at leading innovative companies, was also featured during the LDFA’s recent board meeting. Launched by Ann Arbor SPARK and the Michigan Economic Development Corporation (MEDC), Michigan STEM Forward expects 425-450 STEM students will be placed annually into STEM-focused internships throughout Michigan.
Startups continue to play a significant role in driving economic growth in Michigan, thanks in large part to support from organizations like Start Garden, whose monthly pitch competition, 5x5, draws diverse talent from across the state. Earlier this year, 16-year-old entrepreneur Vishnu Mano won the competition’s top prize of $5,000 for Spotter, an app that helps drivers find the nearest open parking spot, relieving the often-common problem in finding downtown parking in Grand Rapids.
“Start Garden is about getting resources into the hands of entrepreneurs, so they can get off the bench and into the game fast,” said Paul Moore, Director of Start Garden. “Currently, we are taking submissions for our annual 100 competition. Anyone can submit a short video pitching their idea. One hundred are selected to receive $1,000, then compete to be among 10 to receive $20,000.”
One industry seeing substantial growth in Grand Rapids, due to the ongoing introduction of innovative high-tech solutions, is healthcare. Spartan Innovations and Start Garden recently participated in the inaugural Grand Rapids Confluence Fest Thought Series, which was held at the Secchia Center at the Michigan State University College of Human Medicine. Confluence Fest, featuring the transformative power of healthcare technology and innovation, was developed to reinforce West Michigan’s increasing prominence in the state’s healthcare entrepreneurial ecosystem.
When asked about the event, Kyle McGregor shared: “Confluence was an amazing event and only one small piece of the great things being built in Grand Rapids. Participating in the Health equity and the Digital Divide panel was an uplifting opportunity to openly talk about some of the biggest problems plaguing the tech community that often get swept under the rug. Similarly, working as a member of the Confluence steering committee was a perfect opportunity to help bring together some of the most dedicated and thoughtful leaders we have in the state.”
Seeking to build on the incredible momentum established to this point in 2022, the annual Grand Rapids Conquer Accelerator is set to launch Sept. 12 and run through Nov. 18. Over those 10 weeks, Conquer teams will follow a tailored curriculum, designed to help both startups and established companies overcome their challenges. Red Cedar Ventures has invested $200,000 directly in Conquer startup companies in the last two years to support this program. Emphasizing smart planning and growth, Conquer Accelerator empowers startups with extensive mentorship opportunities and expertise from an experienced bench of successful professionals.
“The SmartZone LDFA is proud of the partnership results to date,” said Jeremiah Gracia, Director of Economic Development for the City of Grand Rapids. “Together, Spartan Innovations and Start Garden are building a strong ecosystem for high-tech entrepreneurial services available in the City of Grand Rapids. We look forward to building on this momentum and serving as a benchmark community in equitable high-tech entrepreneurial development.”
Spartan Innovations and Start Garden remain strong going into the second half of the year, where they are committed to focusing on meaningful collaboration, shared resources and valuable partnerships across the Grand Rapids market, especially for early-stage startups. In Q2 2022, LDFA BAF’s $35,000 total funds were approved, with five BAFs approved to date and three additional applications under review.
To reach the Spartan Innovations team, please contact Kyle McGregor, director of health innovations, at kyle@spartaninnovations.org.
About Michigan State University Foundation
Established in 1973 as an independent non-profit, the Michigan State University Foundation is committed to the commercialization of cutting-edge technologies invented by MSU faculty, staff, and students. The MSU Foundation’s overarching goal is to support research, innovation, and entrepreneurship at the University. Additionally, the MSU Foundation operates Spartan Innovations, Red Cedar Ventures, Michigan Rise and incubator facilities to help drive economic development. More information on the organization’s notable achievements, services, leadership, and history are available at www.msufoundation.org.
About Start Garden
Start Garden is an entrepreneurial ecosystem builder based in Grand Rapids, MI. Since 2012, it has launched more than 800 aspiring entrepreneurs through innovative programs like the monthly 5x5 Night pitch competition and the annual Start Garden 100. Covered in The Atlantic and Forbes for its innovative approach to ensuring any aspiring entrepreneur from any neighborhood has the same opportunity, Start Garden places access to real resources as the cornerstone of the ecosystem. At the highest levels of financial support for the ecosystem are the DeVos Family Foundations, WK Kellogg Foundation, Grand Rapids Community Foundation, Meijer DEI Initiatives and The Grand Rapids SmartZone, along with myriad other corporate sponsors and philanthropists. https://startgarden.com.
About the Grand Rapids SmartZone Local Development Finance Authority (LDFA)
The SmartZone Local Development Finance Authority (LDFA) supports high-technology entrepreneurs and businesses. The SmartZone captures increased property tax dollars and reinvests that money back into the entrepreneurial ecosystem in Grand Rapids to provide incubator spaces and connections to support services to advance entrepreneurship and innovation. www.GrowGR.org.