UK Secures ‘Build to Scale’ Grant to Boost Startup Growth and Diversify Investments

Discover how the UK’s ‘Build to Scale’ grant is empowering Kentucky startups, fostering innovation, and diversifying investment opportunities through comprehensive Innovation Funding Programs.

Introduction

In a significant boost to the entrepreneurial landscape, the University of Kentucky (UK) and its partners have been awarded a prestigious ‘Build to Scale’ grant from the U.S. Department of Commerce. This grant is a cornerstone of the UK’s commitment to nurturing startups, fostering innovation, and diversifying investment avenues through robust Innovation Funding Programs.

The ‘Build to Scale’ Grant: An Overview

The ‘Build to Scale’ grant is part of a nationwide initiative by the Economic Development Administration (EDA) under the U.S. Department of Commerce. This program aims to accelerate technology entrepreneurship by providing inclusive access to entrepreneurial support and startup capital. For this cohort, sixty organizations across 36 states, the District of Columbia, and Puerto Rico have been selected, collectively receiving $53 million to fuel economic growth and technological advancement.

Dual Competition Structure

The grant cycle features two primary competitions:

1. Venture Challenge: Focused on supporting organizations at various stages of development, ensuring that startups receive the necessary resources to thrive.
2. Capital Challenge: Aimed at boosting access to capital for startups, particularly those in underserved communities, thus promoting economic diversity and inclusion.

The University of Kentucky, in partnership with Keyhorse Capital, emerged as a 2023 Capital Challenge Grant recipient, underscoring their pivotal role in the regional innovation ecosystem.

Invest Blue Project: Empowering Kentucky Startups

The awarded project, “Invest Blue — Supporting Kentucky Startups, Developing Venture Capital Managers,” has secured nearly $1.5 million in total funding, combining federal support with local contributions from UK and Keyhorse Capital. This initiative is designed to:

• Create the Invest Blue Investment Network: Building a robust network of investors committed to supporting innovative startups.
• Invest in 30 Kentucky Startups: Providing critical funding to emerging businesses poised for growth.
• Form a Sustainable Venture Fund: Establishing a venture fund focused on technology-based, high-risk, and socially innovative startups.

Leadership and Vision

Eric Hartman, the principal investigator and senior associate director of commercialization at UK’s Office of Technology Commercialization, emphasizes the project’s role in democratizing access to capital. Laura Halligan, Launch Blue’s executive director, highlights the partnership’s impact on increasing investment opportunities for underserved communities.

Kelby Price of Keyhorse Capital articulates a vision of empowering diverse capital allocators, crucial for driving innovation and shaping Kentucky’s entrepreneurial future. Terry Samuel from the Kentucky Science and Technology Corporation (KSTC) underscores the importance of equitable access to capital in fostering an innovation-driven economy.

Impact of Innovation Funding Programs

Innovation Funding Programs like the ‘Build to Scale’ grant play a transformative role in the startup ecosystem by:

• Catalyzing Economic Growth: By supporting technology-driven businesses, these programs create high-skill, high-wage jobs and lay the groundwork for future industries.
• Fostering Inclusive Entrepreneurship: Ensuring that entrepreneurs from diverse backgrounds have access to the necessary resources and funding.
• Sustaining Innovation: Providing ongoing support and capital to startups, enabling them to scale and innovate continuously.

Building a Sustainable Ecosystem

The collaboration between UK, Launch Blue, and Keyhorse Capital exemplifies a sustainable approach to fostering innovation. With over $55 million invested in more than 250 Kentucky companies, Keyhorse Capital’s efforts, in partnership with the Kentucky Cabinet for Economic Development, have been instrumental in cultivating a vibrant investor ecosystem.

Future Prospects

As part of the 10th cohort, the ‘Build to Scale’ program continues to support a wide range of organizations, including nonprofits, universities, and government agencies, all dedicated to advancing entrepreneurial success. The ongoing commitment to funding innovation industries such as agriculture technology, bioscience, and advanced manufacturing signals a promising future for Kentucky’s startups and the broader innovation landscape.

Conclusion

The UK’s achievement in securing the ‘Build to Scale’ grant marks a pivotal advancement in supporting Kentucky’s entrepreneurial endeavors. Through strategic partnerships and comprehensive Innovation Funding Programs, the initiative not only empowers startups but also ensures the diversification and sustainability of investment opportunities. This concerted effort is set to drive economic growth, foster innovation, and shape the industries of tomorrow.

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