- David Spalding is the Raisbeck Endowed Dean of the Debbie and Jerry Ivy College of Business and interim vice president of economic development and industry relations at Iowa State University.
Numbers often dominate the story when we measure the return on investment in programs for innovators and entrepreneurs in Iowa. While the number of startups supported, jobs created and dollars secured through private and public investment is impressive, the benefit to Iowans in terms of new services and improved quality of life is even more so.
I recently testified before the U.S. House Subcommittee on Research and Technology to provide Iowa State University’s perspective on the Economic Development Administration’s Build to Scale program, which is dedicated to building regional economies through scalable startups. Iowa State has received two Build to Scale awards totaling nearly $1 million to support the ISU Startup Factory and Iowa G2M (Go 2 Market) accelerator programs.
To date, 88 startups have graduated from the ISU Startup Factory and more than $47 million has been raised in external financing since the program’s inception in 2016. Since the launch of G2M in 2020, nine startups have completed the program — one raising more than $11 million in venture capital funding and another leveraging more than $30 million in research funding.
Again, impressive numbers that indicate the impact of the technology and problem-solving tools being developed by these startups. For example, SoyLei Innovations, established by six Iowa State co-founders in 2020, is commercializing a bio-based alternative to a petroleum-based asphalt additive that can extend the life of our roads, parking lots and recreational trails.
NanoSpy is developing sensors for rapid detection of food-borne pathogens for improved food safety. EnGenious Ag created low-cost, instant read-out sensors for field-based measurement of nutrients in crops, water, and soils. And you’ve likely seen (and perhaps even purchased) Deadeye BBQ sauce or Gym-n-Eat Cricket products at your local grocery store.
These are just a few of the startups here in central Iowa and across the state to benefit from Iowa State’s entrepreneurial ecosystem that are in turn benefiting the state of Iowa. This is what we mean when we say “Innovate at Iowa State” — it’s a part of our culture and the work we do every day as part of our land-grant mission.
Many of the startups are commercializing technology developed at Iowa State, but we’ve also leveraged the success of the ISU Startup Factory to launch the Rural Business Innovators program through America’s Small Business Development Center Iowa (SBDC). This program provides customized one-on-one counseling and group training to help rural entrepreneurs develop and scale their business ideas and create jobs in rural Iowa.
Participants in the program have developed more than 20 companies and collected external funding from multiple sources. They are in various vertical markets, including precision agriculture, renewables, manufacturing and education-tech. All are located in rural areas throughout the state.
If you are an innovator or entrepreneur, Iowa State and the statewide network of Pappajohn Entrepreneurial Centers have a suite of services to support and grow your startup. Existing businesses also can take advantage of programs and resources offered through the university.
Our Center for Industrial Research and Service, which reaches every county in Iowa, is one such resource. Over the past five years, CIRAS and its partners have helped more than 4,400 businesses and manufacturers create an economic impact of more than $2.8 billion. And SBDC Iowa offers no-cost business counseling to small-business owners and entrepreneurs. During the past fiscal year, SBDC counseled 4,217 clients and those companies self-reported more than $1.5 million in sales increases, 213 new business starts and 1,961 new jobs created.
As you can see, the return on the investment that the university delivers from federal and state sources is significant and the ripple effect reaches well beyond campus to benefit every corner of Iowa.
David Spalding is the Raisbeck Endowed Dean of the Debbie and Jerry Ivy College of Business and interim vice president of economic development and industry relations at Iowa State University.