Fostering Start-Up Success and Economic Growth
A simple idea blossomed into a revolutionary company that transformed the online book industry, empowering readers to truly own the books they purchased. Since its inception in 2022, Book.io has sold over 200k books in 110 countries and the two co-founders expanded their team to 20 full-time staff members. This success wouldn’t have been possible without the assistance of McKinney Economic Development Corporation’s Innovation Fund choosing to invest in Book.io.
In November 2022, MEDC awarded Book.io $50,000 through their Innovation Fund distributed over three years. With that funding, Book.io expanded significantly and now attracts interest from prominent investors like Mark Cuban.
The Innovation Fund was created in 2020 to spur high-tech jobs in McKinney and support start-up businesses by giving them a grant and connecting them with different resources to combat any challenges they may face. This three-year partnership grants these new businesses $25,000 the first year and $12,500 the two years following.
Michael Kowski, the president and CEO of MEDC, explained that the mission of the Innovation Fund is to “find talented people with great ideas” and “help them grow and nurture in McKinney.”
Two companies that got selected for the Innovation Fund joined together to make Providential Media, a one-stop shop for fan engagement in the sports industry. Founders for Snipitz and X-Media met at events hosted for Innovation Fund companies and discovered their congruent goals. Because of the Innovation Fund’s focus on expanding networks for companies, these two organizations formed a partnership that combined their respective technologies and shared vision.
“It is not just about the money, it’s really about the network they’re joining,” Kowski said.
To foster connections MEDC hosts different events to allow Innovation Fund companies to network. One such event is called Tech and Trucks, where innovation fund businesses come together to enjoy food from food trucks and discuss their companies. Tech Talks is an event that allows founders to discuss challenges they’re having with their start-up business. MEDC facilitates that conversation and connects them to different businesses who may help them overcome that challenge.
“We are always making connections between people that could help the startups,” Kowski said. “So, in our portfolio, they get really a white glove service to help them find more capital, to connect them with corporations, to meet other founders, [and] to learn how to do it better.”
When selecting the companies who will benefit from the Innovation Fund, MEDC’s project manager, Mike Wilkes must comb through dozens of companies a month to decide which should be invested in. Since its inception, the fund has supported 43 innovative companies.
“It’s a high risk investment for a lot of traditional bankers or real estate investors,” Wilkes said. “Our community accepted the risk, they see the reward, and put this fund in place.”
To be selected, companies must be in McKinney and have a good product. They are focusing on Enterprise AI and want to find businesses that truly put their efforts towards building relationships with companies in McKinney.
The Innovation Fund offers three tiers: the Growth Fund, the standard grant for start-ups; the Expansion Fund, which offers up to $500,000 after three years; and the Recruitment Fund, aimed at attracting new start-ups to McKinney, also up to $500,000.
“For the last about four and a half years, we’ve made a footprint, laid a foundation for that we are a tech forward, innovation focused kind of community,” Wilkes said.
To assist these start-up companies further, MEDC partnered with Plug and Play, a company dedicated to partnering smaller businesses with larger corporations that can help expand their company quickly. This partnership began in January and will last at least three years.
“First they know how to bring corporations and money to startups.” Kowski said. “They also have enhanced, improved, and enlarged our special event networking capability. And third, they bring brand recognition to McKinney.”
If interested in applying for the Innovation Fund or connecting with Plug and Play, go to https://uniquemckinney.com/innovation-fund/ or contact MEDC at (972) 547-765.
Written By Heather Aldridge, Editorial Intern | McKinney Chamber of Commerce
