$100K to locate your business in Tacoma? If you’ve got a good idea, you might qualify
Eli Moreno and Kristine Grace feel very strongly that the next Microsoft or Amazon company is out there.
They want to help them make Tacoma their home.
“We’re trying to attract a company — just like Microsoft is to Redmond, Amazon is to Seattle — we want this company to be that for Tacoma,” said Moreno, a Tacoma developer.
Moreno and Grace, both longtime city residents, have found a way to do that.
The two co-founded The Tacoma Challenge, an initiative offering $100,000 each to three businesses interested in moving to Tacoma.
“We want to attract companies across the state and across the world,” said Grace, founder of Jolt Biotech in Tacoma.
Starting April 1, businesses from any industry can submit applications to TacomaChallenge.org, which includes a one-minute video about the company and a business plan with financials. Applications close May 30.
Five applicants will be chosen to present in front of a panel of judges. The judges are venture capitalists and angel investors from Seattle who could be future investors in the companies.
Of the five chosen to present to the panel, three companies will be awarded $50,000 of equity-free cash, $25,000 in free co-working space and $25,000 in in-kind services, including sales consulting, legal services, cloud services and marketing assistance. Two runner-up companies receive $5,000 of equity-free cash, $25,000 in free co-working space and $25,000 in in-kind services.
The winners will be announced some time in June and must commit to moving to Tacoma for one year.
The cash portion of the award is funded by Moreno and Grace. Different businesses and sponsors are supporting the in-kind parts of the package. There are no public funds from the city being used although the city is championing the effort. Mayor Victoria Woodards applauded the competition during her recent State of the City Address.
“Whether you are a new Tacoma business, one looking to expand, or interested in relocating, part of helping Tacoma businesses thrive is providing a predictable and hassle-free development environment,” Woodards said.
Initially, the businesses selected will be offered rent-free space through Jolt Biotech. A mentor will be on site to help businesses.
“We have a space that’s about 600 square feet, where all three teams will be located and can work together,” Grace said.
The end goal would be having those businesses then transition to other vacant office space in the city.
Businesses interested in applying are encouraged to watch an information night from 6-7:30 p.m. on March 30 by streaming online on TacomaChallenge.org.
“The idea is to generate enough buzz to showcase the city of Tacoma as a great place to do business,” said Moreno, a developer in Tacoma.
Following other cities
The Tacoma Challenge came to be after a local entrepreneur told Moreno and Grace he would have chosen Tacoma if there was more support for his startup in the beginning stages.
That led Moreno and Grace to research similar incentives in other states.
In Kansas City, LaunchKC invested more than $2.5 million dollars in cash grants to attract or retain 61 tech startups since 2015, according to its website.
In St. Louis, nonprofit Arch Grants hosts a competition offering $50,000 equity-free cash grants and pro bono support service. Between 2012 and 2017, Arch Grants has awarded more than $6 million in cash grants to attract or retain more than 100 early-stage businesses. Those businesses have ranged from aeroscience to fashion companies.
“We’re very excited to replicate something like this in Tacoma,” Moreno said.
Already, local business leaders have shared their support and offered to help with the project, including the presidents of Tote Maritime ans MultiCare.
Moreno and Grace want The Tacoma Challenge to turn into an annual event.
“We want to create this organization that every year could offer this type of incentives,” Moreno said.
Moreno said the Tacoma Challenge is only one part of a two-pronged approach to grow the business community in Tacoma. The city is also working to get larger businesses bringing hundreds of jobs to move their headquarters here.
“Our goal is to attract a company that today could be a one or two person company, but in the future could grow very fast,” Moreno said.
