funding

A recent report by DocSend Inc., a subsidiary of DropBox, surveyed over 300 pre-seed startups, finding that on average, in terms of gender alone, mixed teams raise the most funds, while all-male teams raise the least. In terms of both gender and race, on average, mixed gendered teams with minority members raise the most funds while all-male teams with no minority members raise the least. These findings are consistent with prior studies in terms of reflecting the levels of access to funding opportunities, relative lack of investment in diverse teams, and systemic gender bias.

Gov. Tom Wolf awarded $246.8 million to Pennsylvania local economic development partners through the State Small Business Credit Initiative (SSBCI) this week. The money is expected to help small, socially and economically disadvantaged businesses grow. The Pennsylvania Department of community and Economic Development (DCED) will distribute the funds to partners who will administer the funding to qualifying businesses. The funding is divided between the Direct Venture Investment program ($123 million), which provides funding to economic development organizations that disburse it as seed and later-stage capital for companies, and the Revolving Loan fund program ($123.8 million), which provides funding to economic development organizations to create or capitalize loan funds to support small businesses.

With President Biden’s signing the CHIPS and Science Act on Aug. 9, states and universities are already making plans to build on the funding opportunities present in the legislation. For example, a group of Midwest colleges and universities has formed a new coalition to support the advanced semiconductor and microelectronics industry as Intel begins construction on a microchip plant in Ohio, and multiple states are positioning themselves to compete for semiconductor manufacturing incentives — as encouraged by Commerce Secretary Gina Raimondo. This article summarizes these early state actions (for recent federal activity, see SSTI’s coverage).

In what is being heralded as one of the most impactful regional economic development initiatives in decades, 21 coalition winners — including three SSTI members as coalition leads — of the $1 billion Build Back Better Regional Challenge have been announced. Each of the awardees will receive between $25 million and $65 million to fund 123 projects designed to advance economies across 24 states. This investment, which will be matched by more than $300 million of local investment, is expected to create a regional economic strategy that is “greater than its parts,” according to the U.S. Economic Development Administration (EDA).

The recently-passed CHIPS and Science Act included $54.2 billion in appropriations, largely for semiconductor manufacturing incentives ($39 billion) and R&D ($11 billion). The administration is releasing information about its planned distribution of funds. Recent resources include: a strategic plan from the U.S. Department of Commerce, the agency administering the bulk of the funding; a research recommendations report from the President’s Council of Advisors on Science and Technology (PCAST); and, a new CHIPS.gov website from Commerce.

A group of seven researchers analyzed upwards of one million National Science Foundation (NSF) proposals over a 23-year period (1996-2019) and found patterns of racialized disparities where white principal investigators (PIs) were consistently funded at higher rates (8+ percent) than most non-white PIs. The preprint study (not peer reviewed) states that similar patterns can be observed in other agencies and are consistent with other past studies as well. The question of whether systemic racism is at play in the NSF peer review and award selection process is even more pronounced when one considers more specific demographics such as Black and Native Hawaiian or Pacific Islander PIs.

Thirty two industry-led workforce training partnerships from across the country were announced as the grant winners of the $500 million Good Jobs Challenge by the U.S. Economic Development Administration. Selected from 509 proposals, the regional partnerships are focused on removing barriers to training and are expected to increase more equitable labor participation with a focus on 15 key industries.

The National Science Foundation (NSF) is breaking with tradition this week and for the first time released application data before it formally accepts applications for the NSF Engines program, which will provide up to $160 million of funding for up to 10+ years to establish each regional-scale innovation ecosystem Engine. The nearly 700 concept outlines have been published to help submitters in preparing successful proposals, with the belief that the applications and subsequent Engines will be strengthened if applicants are able to find one another and collaborate. NSF has also announced the Type-2 award deadlines for the Regional Innovation Engines program.

Manufacturing, healthcare services, information technology, building and construction, and transportation, distribution and logistics are the top five industries by number of applications submitted to the U.S. Economic Development Administration’s Good Jobs Challenge, according to EDA. Grantees for the $500 million program are expected to be announced this summer, with 509 proposals totaling $6.4 billion in requested funds submitted from every state and territory. The initiative is focused on removing barriers to training, particularly for those workers hit hardest by the pandemic, including women and people of color.

To expand the innovation capacity in the nation, the United States needs to leverage resources, creativity, and ingenuity from across all geographic regions. The National Science Foundation this week announced a new program in support of these efforts: the NSF Regional Innovation Engines, or NSF Engines program. This program encourages the creation of regional coalitions of industry, academia, government, nonprofits, civil society, and communities of practice to form partnerships that boost scientific and technological innovation and benefit the economy in a geographic region. Specifically, the NSF Engines program targets geographic areas in the U.S. that lack well-established innovation ecosystems. Awards of up to $160 million for up to 10 years ultimately will be provided. At SSTI’s Annual Conference this week, attendees learned more about this program from NSF representatives.