In a nutshell
Early-stage startups can now be awarded up to $200,000 of non-diluted capital, which is a $150,000 increase from the previous maximum grant award. Companies that agree to locate their headquarters in McKinney for three years will earn the full grant award available to them.
Established, later-stage startups that want to relocate may qualify for up to $500,000 in support, according to the news release.
MEDC officials announced the update to its Innovation Fund grant program during Web Summit 2024, an annual tech conference hosted from Nov. 10-13 in Lisbon, Portugal.
Quote of note
“By increasing the Innovation Fund grant limit, we are expanding our reach of deals, further aligning with our strategic partners, and filling a large market need for early-stage funding,” MEDC Project Manager Mike Wilkes said in a statement. “In just this past year we’ve made huge strides in establishing McKinney as the best place to build a business, especially a startup.”
By the numbers
Since 2020, the MEDC has supported 45 startups that are estimated to have created 931 local jobs with an average salary of over $80,000, according to the news release.
Expansion of the Innovation Fund aims to help the city’s vision in becoming a central hub for tech and AI innovation. With the increased funding capacity, officials expect to attract companies at a “critical growth” phase, and accelerate their trajectory while “fueling the local economy," the release states
“Investing in innovation is key to McKinney’s growth strategy,” MEDC President Michael Kowski said in a statement. “With our expanded resources and strategic partnerships, we’re fostering a startup-friendly environment that appeals to serial entrepreneurs and drives economic impact faster and more efficiently.”
The background
The MEDC created the Innovation Fund in 2020 to offer grants between $50,000-$500,000 to technology startups. The fund’s primary goal is to encourage companies to open or relocate to McKinney, leading to job growth.
Grant types offered by the Innovation Fund include:
- Growth: A grant of up to $200,000 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
In case you missed it
The MEDC launched a partnership in March with Plug and Play, a global innovation platform. The platform aims to support McKinney’s startup ecosystem by connecting startups, corporations and investors.
Plug and Play launched two startup programs in McKinney: enterprise and AI, and FinTech, or financial technology. Its first accelerator program opened with participation from 21 startups from around the Dallas-Fort Worth area.
For more information on the McKinney Economic Development Corporation and the Innovation Fund program, visit https://uniquemckinney.com.
