St. Louis is losing an early stage tech startup to Paducah, which may be a trend as smaller cities learn the value of – and throw some seed money at – early stage tech startups.
In the recently published report ‘Economic Impact of Missouri Startups’ it was found tech startups create an average of 863 jobs each year – and they’re mostly high paying jobs. Programs like Arch Grants have attracted high growth potential startups from other parts of the country by offering founders $50,000 (equity-free) on the condition that they move to St. Louis.
Other cities are taking that model and running with it. 1st50K is one such competition. It’s been pulling startups like SwipeSum, SportsTrace and UpSwot to Cape Girardeau, Missouri for a couple years – and it branched out to Paducah, Kentucky this spring. It recently announced the first Paducah cohort.
The three winners are:
- Noninvasive Diagnostic Instruments, St. Louis
- Seamly Systems, Huntsville, AL
- CuddlyTails, NYC
All are awarded $50,000 and are required to relocate to Paducah.
Noninvasive Diagnostic Instruments (NDI) is a project started in 2019 by Bernard Miller III M.D. founder of Miller Diversified Health Partnerships LLC, headquartered in St. Louis, Mo. He’s developing a device that can test lipid levels but doesn’t require a blood-draw and a lab – it’s noninvasive.
“That’s convenient, is immediate, and people like it better,” Miller said, adding that he’s moving to Paducah for the money. “It doesn’t really matter where I do what I do.”
Miller got a lot of help from a number of St. Louis entrepreneur support organizations, including BioGenerator, CET’s Square One and was even a finalist in the UMSL ‘DEI’ competion, but did not go home with the money. Now he’s moving to Paducah. Is this a zero-sum game for cities trying to nurture tech ecosystems?
“There’s such a need for startup activity in the Midwest… it’s a win for all of us when people see companies, investment and talent in the region,” Arch Grants Executive Director Emily Lohse-Busch tells the 4thEst8. “People may come to St. Louis for the $50,000 but they stay for the ecosystem… movement to the middle of the country is a net positive for all of us.”
On the 4thEst8:
Economic Impact of Missouri Startups
Caught Schmoozing at 1st50K Paducah
