In American city of Saint Louis an unusual business-incubator, Arch Grants, has recently been started up, TechCrunch portal reports. It is of a peculiar legal form, that of a public organization. The idea of creating such an incubator belongs to a number of businessmen, investors and community leaders. Despite all the difficulties, Arch Grants was approved by the city administration and managed to attract $2,5 M from companies and private citizens.
Saint Louis once possessed the developed industry, but in the course of time the production was curtailed. The city was gradually falling into decay, therefore it was vital to create the basis for new developing companies capable of reviving the city’s economy. New Business Incubator Arch Grants is to become such a basis. Its founders emphasize the point that a beginning businessman will be able to have a greater impact on the society contrasted to the Silicon Valley or Boston chosen as a starting point having created his own company in Saint Louis.
Arch Grants has the following working scheme: first it carries out the contest of business projects, choosing the most interesting and promising. These projects are given financial foundation of $50000. Later these startups will have an opportunity to struggle for $ 100000 in the second stage of the financial competition with participation of their business-angels. According to Jerry Schlichter, Arch Grants business-incubator’s president, the incubator will be working with 12 startups a year.
The idea is not unreasonable for it aims at 2 goals: solving social problems and helping to develop business.