Last year, KCSourceLink and other groups in town released a report on one of Kansas City’s biggest challenges: Up-and-coming entrepreneurs often have a hard time finding access to the capital they need to grow.
Today, the community can point to real progress on funding. KCSourceLink released its latest “We Create Capital” report Tuesday during an event at Union Station. It highlights some of the ground that Kansas City’s entrepreneurship community has gained over the past 12 months. (You can find a copy of the report here.)
>> Angel investments have doubled since 2012, from $1.4 million in 2012 to $2.8 million in 2015. There’s a new Northland Angel Investment Network that’s looking to invest in early-stage companies.
>> There’s one new seed fund, and three others are raising money.
>> Accelerator programs based in Kansas City have grown from $180,000 to $1.3 million.
>> Microloans are becoming more available thanks to the efforts of groups like Justine PETERSEN, WE-Lend, AltCap and the Hispanic Economic Development Corporation, which has launched a new Impacto Loan Fund.
>> Several venture capital operations are stepping up their presence in Kansas City. The new KCRise Fund, for example, is working to raise $20 million as a sidecar fund, while St. Louis’ Lewis & Clark Ventures and Dundee Venture Capital of Omaha are both looking for KC-based investments.
>> There’s been steady progress in grants for early-stage companies, too. Digital Sandbox KC has secured continued funding for its proof-of-concept and beta-testing support. LaunchKC awarded $500,000 worth of grants last fall, and it’s set to do so again during this fall’s Techweek festival.
There’s still room for improvement. For example, more Kansas City entrepreneurs could be competing for federal SBIR and STTR grants, which fund innovation research. (In 2015-16, a dozen KC-area companies won about $2.1 million worth of those grants.) KCSourceLink said it’s working to offer more training on SBIR grants to local companies.
The Kauffman Foundation announced that it plans to help by offering training and other support to fund managers, which could build the community’s capacity for raising capital and investment. It’s also looking for ways to support the city’s network of microlending.
Maria Meyers, the head of KCSourceLink, said that it was amazing to see how many people in the community have stepped forward and worked to make things better in the past year.
While she cautioned there’s more to do—“It’s a marathon, it’s not a sprint”—she saluted those in the audience for their efforts. “Thank you for the work that you’ve done.”
