Fort Worth Group presents blueprint to improve capital access for entrepreneurs

Fort Worth is one of the fastest-growing cities in the nation, recently rising to No. 12, but some area leaders have been saying for years that the city’s entrepreneurial growth has There were concerns that the country was not keeping pace with the population.

A new report from Sparkyard, a resource for local startups, shows that while the city is making progress, it still lags behind, especially in access to capital.

In Texas, Fort Worth ranked fifth behind Houston, San Antonio, Austin and Dallas, with only El Paso ranking lower in terms of entrepreneurs’ access to the capital they need to start a business.

“On a per capita level, a Fort Worth entrepreneur can expect to raise about $27 in early-stage funding, while an entrepreneur in a city just 30 miles east of here can expect to raise about $2,000. ” Cameron said. Mr. Cushman is the Assistant Vice President for Innovation and Ecosystems at the University of Texas Health Science Center.

Cushman gave a presentation on the research findings to members of the City Council’s Entrepreneurship and Innovation Committee.

“So tell me where you want to start your company?” he asked.

On a national level, Fort Worth ranks 47th in early-stage capital raising, just ahead of Arlington.

“Fort Worth is one of the fastest growing large cities in the United States, but its strong start has not kept pace with growth and access to capital is low,” Cushman said.

Entrepreneurial resources in Fort Worth remain fragmented and siled, Cushman said, and the city lacks prominent and deep-pocketed backers to champion entrepreneurship.

While some numbers still look bad, Cushman said the city has made progress since the first white paper on the subject was released in 2021.

Main recommendations

1. Revise permit and license procedures with a customer service approach and build on improvements suggested by the Institute for Justice.
2. Funding: $200,000 to TechFW for 2-3 years. $100,000 to Sparkyard over 2-3 years. Provides grants of $5,000 to $10,000 to new businesses using 5% of local economic development funds. Workforce development. and directing 5% of government procurement dollars to companies that are less than five years old.
3. Programming: Add an accelerator or incubator program that fits your entrepreneur’s needs.
4. Lobby the Texas Workforce Commission for access to quarterly employment statistics and wage data to track job creation by startups.
5. Create a sense of crisis and stimulate further philanthropy in innovation.
6. Audit all startups that receive city funding and re-evaluate funding based on the audit.

sauce: Entrepreneurship = Economic Development: How to Move Fort Worth Forward Report.

Since then, the city has hired a chief innovation officer and significant progress has been made in permitting assistance tools to help developers and businesses navigate the various agencies.

“When we started the process, we had one out of five stars,” Cushman said. “And literally within just a few months, the Institute of Justice ranked him four out of five stars.”

Cushman pointed to Techstars’ physical health booster, the new Entrepreneurship Center on the Near South Side, Kaufman’s Fast Track program coming to the city, and the reopening of the Million Cup Fort Worth chapter. He also mentioned expanding access to capital through the CDFI Friendly Fort Worth program.

“We as government officials cannot solve all the problems alone,” said City Councilman Michael Crane, chairman of the Entrepreneurship Committee. “We need private companies and entrepreneurs to come and say how we can help. It’s a roadmap to make your home better, easier, faster and cheaper for future growth and success.”

Cushman said Fort Worth is a great place to start a business, but there are things that could be improved.

“What we presented today was a set of about a dozen recommendations that will help start new businesses in the City of Fort Worth cheaper, easier and faster on items directly controlled by the City of Fort Worth. . ” He said.

Cushman said he is encouraged by the city’s progress.

“The Institute for Justice on the city’s one-stop shop said they had never seen the city move forward this quickly,” he said. “Fort Worth went from one star to five stars in less than six months, which is great. Now he’s one star up. We have a little more work to do. There is.”

Bob Francis is the Fort Worth Report’s business editor. Contact him at bob.francis@fortworthreport.org.

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