Sugar Land is putting real money on the table to reel in startup headquarters, rolling out its Sugar Land Starts Innovation Fund this week. The performance-based cash program sets revenue and capital benchmarks, requires companies to move at least three full-time employees, and enforces an average salary floor, all in a bid to bring higher-paying life sciences, advanced manufacturing, information-technology and business services jobs to the suburb while breathing life into vacant office space, as reported by the City of Sugar Land.
The initiative went public after the Sugar Land Development Corporation signed off on the package, according to the City of Sugar Land. The city frames the fund as a non-equity, performance-based grant aimed at startups that are already generating revenue and ready to plant their operations in Sugar Land. Economic development staff say the program is intentionally designed to line up with the Plug and Play accelerator that began operating in Town Square last year.
How the fund works
To qualify, companies must already be bringing in revenue and show at least $250,000 in generated revenue or $500,000 in institutional backing, commit to relocating a minimum of three full-time employees to Sugar Land for at least three years, and meet an average annual salary requirement of $61,240, the release states, according to the City of Sugar Land.
“By focusing on revenue-generating startups and performance-based incentives, we are creating a clear pathway for innovative companies to scale while reenergizing existing office space,” Colby Millenbruch, the city’s business recruitment manager, said in the announcement. To police the salary promises, the program will verify compliance through Texas Workforce Commission reporting or other documentation approved by the city.
Plug and Play and the local pitch
The fund stacks on top of the Plug and Play accelerator already operating in Sugar Land Town Square. The city’s economic development site reports that Plug and Play has accelerated 22 startups locally, and those companies have raised roughly $6.5 million in capital. According to Sugar Land Economic Development, the partnership has produced numerous corporate and investor introductions that staff hope will translate into relocated headquarters…