Editor’s note: The following is the third in a four-part series exploring the verticals and impact of initiatives within the Economic Development Corporation of Kansas City through a paid partnership with EDCKC.
• Leave KC better than you found it: How matching growth to city’s needs is paying off
Finding and supporting a new generation of job creators and innovators can be just as important as attracting big development projects to Kansas City, said Jim Erickson, reflecting on how individual entrepreneurs can change the region’s economic landscape.
“Most economic development entities weren’t really in the entrepreneurship space very strongly about five to 10 years ago,” continued Erickson, the director of strategic initiatives for the Economic Development Corporation of Kansas City, Missouri (EDCKC). “That has become an increased focus for EDC under our CEO, Tracy Lewis. It’s really a big part of what we do.”
“We’re looking for those startups that have the potential to be the next Helzberg Diamonds, H&R Block, Hallmark cards,” he added, “those homegrown companies that define Kansas City.”
One core component of EDCKC’s strategy for making the region more nurturing for entrepreneurs and emerging startups: LaunchKC.
The grants program — which includes funding of up to $55,000, along with access to office space, technical support, and networking opportunities — is coordinated in partnership with the Downtown Council of Kansas City.
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“Traditional economic development tools just don’t work for early-stage companies,” Erickson explained. “A tax abatement doesn’t do a lot for a company in their garage or at WeWork. Some of these jobs packages that we can see with larger business attraction projects just don’t really help when you’re talking about an entrepreneur who might be paying people with equity in the company they’re building.”
EDCKC took the initiative to set up its own toolbox, specially tailored to the needs of such innovators, he added.
The grants program, for example, doesn’t work like more typical state-authorized tax incentives programs, Erickson said.
“We go out every year, find our resources, set up the strategy, the parameters, and work to grow our existing entrepreneurs and bring them to Kansas City,” he added. “We’re going out and finding the resources and opportunities to bring to our entrepreneurs. It’s not something that just works statewide.”
Jim Erickson, EDCKC, speaks alongside Tommy Wilson, Downtown Council, during the LaunchKC reveal event in November 2024; photo by Nikki Overfelt Chifalu, Startland News
The LaunchKC multiplier
Erickson and other EDCKC leaders enjoy seeing startup success stories from within LaunchKC cohorts — like 2022 grant winner Bryght Labs pitching its electronic chess board on TV’s “Shark Tank” — but the overall impact of portfolio companies is the most compelling, he said. Over the past decade, 115 LaunchKC-backed companies have helped create 1,200 jobs for Kansas City and generated close to a half-billion dollars of investment.
2022 LaunchKC staff and winners; photo courtesy of LaunchKC
“What we’re seeing with our metrics is that this work is really impactful,” Erickson continued. “More so than the individual examples, it’s just showing that a city like us — if we invest in entrepreneurship long term — we get huge return on investment.”
“A couple years ago, we were shocked to see that that number had passed 600 jobs,” he added. “Then less than two years later, we’re at 1,200 and so we’re really starting to see that exponential growth. It’s really rewarding.”
The grants program also includes LaunchKC’s Social Venture Studio, which connects business solutions rooted in solving social, environmental or racial issues, with the firepower necessary to thrive, according to the program.
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In addition to LaunchKC, EDCKC’s entrepreneurship arm also advocates for state legislative policies that advance entrepreneurship and partners with KC BizCare to provide microgrants and other opportunities for small scale capital access for entrepreneurs.
Now in its fourth year, Social Venture Studio has graduated 21 companies — which receive professional support, a $20,000 grant award, temporary office space, mentoring and network connections to strengthen their social venture business concepts — from its previous three cohorts. The program received the IEDC Excellence in Economic Development Award for work in promoting economic equity and inclusion in 2022.
“We had an opportunity to enhance the social enterprise industry cluster,” Erickson noted. “Anything that we’re calling an industry strength in Kansas City should have an entrepreneurship strategy, as well. Because what makes us good for a large business attraction project would also make us good for a startup to locate here.”
“That’s why our entrepreneurship initiatives are so important,” he added. “Not only are we finding the next generation of job creators and economic engines, but we’re doing so with folks who are on the cutting edge of their industries or technologies.”
Thriving on the other side
Whether it’s a traditional LaunchKC cohort or Social Venture Studio, EDCKC’s entrepreneur-focused programming prioritizes helping businesses when they are at their most vulnerable, Erickson shared.
Jim Erickson, EDCKC, gives a presentation on LaunchKC during an August 2024 gathering for 1 Million Cups Kansas City at the Offices at Park 39; photo by Taylor Wilmore, Startland News
“The companies that we take in are in that ‘valley of death’ stage; those first years where a lot of companies fail,” he explained. “And they don’t necessarily fail because the business is based on a bad idea. They fail because an entrepreneur is expected to be the CFO, the HR person, sales, marketing; they have to wear all these hats.”
So LaunchKC helps founders not only with grant funding and office space, Erickson continued, they are also provided mentorship and programming.
“Our hope is to get them to the other side of those early-stage years — get them connected with corporate partners, clients and others who can help them grow here in Kansas City long term and thrive,” he said.
And it’s working, Erickson emphasized, noting LaunchKC portfolio companies have significantly lower failure rates.
