Plug and Play is a global innovation platform that connects startups, corporations and investors to drive advancements and business growth, said Rick Thompson, McKinney Plug and Play director. The company partnered with the McKinney Economic Development Corporation, which has been investing in startups since 2020 through its Innovation Fund program.
The city has grown its startup ecosystem in recent years as a result of efforts by the MEDC, but more growth is expected as Plug and Play works to connect local startups to resources through its global network, Thompson said.
The big picture
The MEDC created the Innovation Fund in 2020 to spur McKinney as an innovation hub by offering technology startups grants of $50,000 to $500,000, MEDC President and CEO Michael Kowski said.
Unlike other grants offered by the MEDC, Kowski said the primary goal of the Innovation Fund is to encourage companies to open or relocate to McKinney, which leads to job growth. MEDC Project Manager Mike Wilkes said the program has brought over 700 potential new jobs to McKinney since its inception.
As of July, 43 companies have participated in the program, with 11 having completed the three-year program, during which they are required to stay in McKinney. Of those 11, eight are still located in McKinney.
The MEDC has seen growth in applications but has admitted fewer companies this year in an effort to prioritize supporting the launch of Plug and Play, Wilkes said.
Plug and Play’s relationship with the MEDC was paramount to opening a tech center in the city, Thompson said. Plug and Play and the MEDC share an interest in driving technology innovation and economic growth in the region, he said.
“If it wasn’t for the McKinney EDC, Plug and Play would not be in McKinney,” Thompson said.
The McKinney location launched in March with a focus on two programs: enterprise and AI, and FinTech, or financial technology. Plug and Play’s first accelerator program opened with participation from 21 startups from around the Dallas-Fort Worth area, he said.
The Innovation Fund program also focuses on technology businesses but has a longer list of business types that are eligible to participate in the program. The industries selected are competitive and offer jobs to the community, Kowski said, but they also contribute to creating an intentional startup ecosystem and supporting future growth.
Some Innovation Fund participants include:
- One Stop Wellness: MedTech company offering an app-based personalized wellness service for employers
- Contraforce: Cybersecurity management software company serving small and midsize businesses
- Review Wave: Software company with over 100 employees serving the health care industry
- Autix: Technology startup offering an online platform for automotive enthusiasts, vendors and dealers
- Rikodi: SportsTech company offering an online platform for sports teams and athletes looking to create content for fans
- “The McKinney EDC’s commitment to fostering innovation and their willingness to move quickly made McKinney a compelling choice for a new office," Thompson said.
- “Our startup ecosystem is at this great stage of evolution," Kowski said. "We’re kind of out of the infancy stage and getting into the preteen years."
Innovation fund grant types offered by the MEDC include:
- Growth: A grant of $50,000 to support early-stage technology startups
- Expansion: A grant of up to $500,000 for startups seeing rapid growth
- Relocation: A grant of up to $500,000 for startups that relocate their primary headquarter facilities to McKinney
McKinney-based startup and Innovation Fund participant Book.io offers its customers a place to buy and sell e-books, audiobooks and other digital media, CEO Joshua Stone said. The company used the grant funding to relocate from a coworking space to its office in downtown McKinney.
“There are a shockingly large number of startups,” he said of the city. “I continue to be impressed with the number of startups.”
The Innovation Fund grant program has contributed to creating a growing reputation for the city in the startup community, Kowski said. McKinney’s startup ecosystem has also begun to “develop a personality,” he said.
“Google started in a garage, Amazon started in a garage,” MEDC Marketing Manager Luke Gajary said. “The next unicorn that starts in a garage, ... why can’t the garage be in McKinney?”
Looking ahead
Plug and Play officials are projecting between 10-15 participating startups during the fall FinTech program session, Thompson said.
Kowski said the MEDC is also looking to support future growth by contributing to the creation of additional office space, noting that adding office space in downtown McKinney would be “valuable.”
Jenn Denham, vice president of growth at Review Wave, which offices in the Common Desk building downtown, said the MEDC has worked to support the city’s startup ecosystem by facilitating networking and connections.
“It’s just amazing to see that McKinney can still have that small, hometown feel ... but also be able to be connected with the amazing tech innovation,” Denham said.
