©2023 McKinney Economic Development Corporation
Recent Innovation Fund Awards
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What is the Innovation Fund?
The MEDC created the Innovation Fund in Jan. 2020 in order to spur high-tech job creation within McKinney, placing McKinney as an innovation hub. The Fund provides non-dilutive capital to selected startups during stages when capital is often more difficult to come by, and realizes its return when the startup finds success in McKinney and creates local jobs.
Target Verticals include: AI/ML, Enterprise-oriented solutions, B2B SaaS, Future of Work (AR/VR), Big Data, IoT, Cybersecurity, FinTech, and Semiconductor Tech.
Criteria
GROWTH
- Startup must relocate and retain its HQ in McKinney for 3+ years
- MVP or prototype is developed and ready to demonstrate
- Driven team of at least 2 employees
- Scalable Business Model
- Large market opportunity
- Industry is within Innovation Fund target verticals
EXPANSION
- Company HQ has been in McKinney for at least 1 year
- At least 10 local employees
- Employee growth greater than 10 new local jobs
- $500K ARR or at least $1M raised
- Company has demonstrated rapid growth in McKinney
- Industry is within Innovation Fund target verticals
- Retain company HQ in McKinney for 3+ additional years
RECRUITMENT
- Startup must relocate and retain its primary HQ in McKinney for 3+ years
- At least 15 local employees, no more than 50
- $500k ARR or at least $1M raised
- Considerable employee growth projected
- Industry is within Innovation Fund target verticals
Grant Types
GROWTH
$50,000 grant to support the early-stage growth of selected technology startups who locate their primary HQ to McKinney.
50% Upfront, 50% Performance-Based
EXPANSION
Graduate from the Growth Fund into Expansion!
Up to $500,000 grant to selected startups in McKinney who have demonstrated rapid growth.
Performance-based
RECRUITMENT
Up to $500,000 grant to selected later-stage startups who locate their primary HQ in McKinney, calculated by the local jobs created and their average salary.
Performance-based
FAQ
What defines a local job?
The MEDC defines a local job as a full-time employee working a minimum of 32 hours per week, on a hybrid or in-person work model. The MEDC will account for all jobs during the screening process, however only incentivizes local job creation. A great fit for the Innovation Fund is a founder who desires to build a strong company culture through a hybrid or in-person model of work.
What defines a Company or Primary HQ?
Let McKinney be the impressive and fast-growing location for your company! The MEDC defines a company or primary HQ as the central hub of business operations for the business. International Headquarters, meaning the U.S. HQ would be in McKinney, are also acceptable for the Innovation Fund.
How is the Innovation Fund funded?
The MEDC is funded by a half cent of each sales tax dollar within McKinney. Each year, there there is an allocation for the Innovation Fund from the MEDC budget.
What is the return on the Innovation Fund?
Job Creation! The Innovation Fund was created to bolster the high-tech job creation of McKinney. High-paying wages and large numbers of local hires are our primary returns on the Innovation Fund.
What does it mean to be in the Innovation Fund?
Due to our return being job creation, the MEDC views this relationship as a partnership with the founder of the startup. We are active partners in supporting our startups through introductions to potential clients, our network of investors, we’ll share your press releases and exciting news, even pilot opportunities within the City of McKinney.
If the startup is finding success in McKinney in revenue generation and customer acquisition, then job creation occurs. Therefore by helping our McKinney startups, we’re protecting our investment, and making McKinney the best place to build a business!
What does the Plug and Play partnership mean for the Innovation Fund?
We’re thrilled about Plug and Play McKinney! Plug and Play is a world-class accelerator with offices all around the world, and a corporate network of 600+ F1000 companies. This means Innovation Fund portfolio companies receive the highest level of market access, mentorship, and portfolio support. All without having to give away any equity or pay any fees!
To learn more:https://www.plugandplaytechcenter.com/mckinney/
