City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01246 10/3/2023 Consent Item 18.
2023 Sacramento Innovation Grant Award Recommendations
File ID: 2023-01246
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute up to 28 Sacramento Innovation Grant Program grant agreements for a total amount not to exceed $2,009,392.
Contact: Aubree J. Taylor, Development Program Manager, (916) 808-7191, [email protected]; Michael K. Young, Development Program Manager, (916) 808-5412, [email protected]; Lorrie Clark, Development Program Manager, (916) 808-5448, [email protected]; Denise Malvetti, Deputy Director, (916) 808-7064, [email protected]; City Manager’s Office of Innovation and Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-2023 Sacramento Innovation Grant Funding Recommendations Summary Additional Description/Analysis
Issue Detail: On June 21, 2016, Council amended the Innovation and Growth Fund Policy to authorize the creation of new programs to expand the startup pipeline and engage the innovation ecosystem (Resolution No. 2016-0240). In doing so, Council approved a framework for the Sacramento Innovation Grant Program (formerly known as RAILS Grant Program and SUTL Innovation Grant Program),and budgeted $1 million annually for the program.
Awarded projects in the first three cohorts of the Sacramento Innovation Grant program included support for incubators, accelerators, co-working spaces, makerspaces, training programs, events, and community organizations that serve and foster Sacramento’s innovation ecosystem. The program has been on hiatus since 2020 while the Office of Innovation and Economic Development
File ID: 2023-01246 10/3/2023 Consent Item 18.
focused on the deployment of CARES Act and ARPA funding. In 2022, staff reengaged the Mayor’s Tech Council, which has always been an integral part of the grant program by way of assisting with the design, implementation, and evaluation. Staff has worked with the Mayor’s Tech Council over the past year to prioritize areas of the framework that support the greatest needs of the small business and innovation ecosystem.
For the 2023 grant program, staff opened the application process for two distinct grant opportunities:
1. Innovation Event Grants of up to $15,000 to fund one-time or a series of events focused on fostering knowledge and ideas that inspire entrepreneurship and the growth of innovative businesses and programs.
2. Ecosystem Building grants of between $20,000 to $250,000 designed to catalyze innovation in the startup community and build pipelines for entrepreneurs into key industry verticals through programming such as incubator and accelerator, technology commercialization, coworking, and training programs.
The application period for both grants opened on June 5, 2023, and closed on July 17, 2023.
The City received 67 applications totaling approximately $1 million in funding requests for the Innovation Event Grants and 86 applications totaling approximately $14.5 million for the Ecosystem Building Grants.
Members of the Mayor’s Tech Council and subject matter experts (Review Panel) engaged in a two- phase selection process for each grant opportunity:
1. Initial Review: All eligible applications were reviewed for eligibility and completeness by City staff.
2. In-Depth Review (Semi-finalist Scoring Round): the Review Panel reviewed and scored applications based on the following criteria:
a. Potential Project Impact (25 points)
b. Staff Experience and Capacity (20 points)
c. Finance and Budget (20 points)
d. Equity and Inclusion (20 points)
e. Community Partnerships & Collaboration (15 points)
Based on the evaluation, immediate funding is recommended for 14 Innovation Event Grants and six Ecosystem Building Grants. Because of the large number of applications and high quality of the programs that applied, staff recommends allocating an additional $1,009,392 to support eight additional Ecosystem Building Grants that would commence programming in January 2024. If approved, there would be a total of 28 grants awarded for a total award of $2,009,392. The list of proposed grantees and maximum award amounts is included in Attachment 2.
File ID: 2023-01246 10/3/2023 Consent Item 18.
Policy Considerations: Council approved the creation of the Sacramento Innovation (formerly RAILS) Grant Program on June 21, 2016. The grant funding recommendations are in alignment with the Fund goals to “advance innovation, economic growth, and job creation in Sacramento.” Furthermore, the program comports with City’s ScaleUp Inclusive Economic Action Agenda, which identifies Innovation and Entrepreneurship as one of five key market levers for a thriving and inclusive economy.
Economic Impacts: The Sacramento Innovation Grant Program is designed to achieve medium to long-term economic outcomes by increasing the capacity of Sacramento’s innovation ecosystem and enhancing the conditions under which startup formation may occur.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed actions are not a project under CEQA because they relate to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§ 15060(c)(3), 15378(b)(4)). Even if any of the proposed actions are a project, they are not subject to CEQA because it can be seen with certainty that there is no possibility that any of them may have a significant impact on the environment (Cal. Code Regs., tit. 14, § 15061(b)(3)).
Sustainability: None
Commission/Committee Action: Not applicable
Rationale for Recommendation: As noted in the City of Sacramento 2013 Economic Development Strategy, Sacramento’s economy has been over-reliant on government and real estate industries.
Without an intentional shift towards new industries, and without a specific commitment to diversity and inclusion, Sacramento will continue to stall economically compared to other cities, including comparable capital cities. In order to be recognized as a national innovation leader and create new private sector jobs that will bring new wealth to the community and drive growth in other industries, Sacramento must become a hub of innovation, technology, and entrepreneurship.
The goals of this program align with the City’s ScaleUp Inclusive Economic Action Agenda to drive our region’s growth by prioritizing new strategies to help create economic mobility and opportunity for all residents. Because high levels of income inequality in a city lead to lower incomes and growth rates, grant programs like this are critical to providing underserved communities access to Sacramento’s innovation ecosystem.
Financial Considerations: The Sacramento Innovation Grant Program is funded by the Innovation and Growth Fund (Fund 2031) and sufficient funding is available in the RAILS Grant Program Project
File ID: 2023-01246 10/3/2023 Consent Item 18.
(I18000100).
Local Business Enterprise (LBE): A 5% scoring preference was given to Innovation Event applications from businesses that attested to qualification as a local business enterprise.
ATTACHMENT 2
2023 Sacramento Innovation Grant Funding Recommendations Innovation Event Grants
Event Organization Maximum Award
3rd Annual Sistah Soul Brunch &
Mixer
SDW Consulting & Training $ 15,000
Artistic Pathways: Unveiling
Opportunities for Artists within
Sacramento Organizations
Justina Martino DBA Art Tonic $ 15,000
CBCC Small Business Mixer California Black Chamber of Commerce $ 15,000 Design Week Sacramento Design Sacramento (dba Capitol Creative Alliance)
$ 15,000
Elevator Pitch & Putt Tipsy Putt, LLC $ 15,000
Innovation, Economics and
Equity Elevation speaker series
25th & Jazz $ 14,700
Maker Meetup Series Hacker Lab EDU $ 15,000
Motivated Entrepreneurs
Showcase
California Capital Small Business Financial
Development Corporation
$ 15,000
NorCal Film Expo - Sacramento Camera Kitchen $ 15,000 Sacramento Social
Entrepreneurship Summit -
Practical Roundtable and Pitch
Competition
University Enterprises, Inc. $ 14,200
SEA 2024 Annual Showcase Sacramento Entrepreneurship Academy $ 15,000 Shop Locals, Sacramento
Business Exchange, Business
Workshops, PROTALK
(Professionals Talk), & Meet &
Greet
California Asian American Professional
Society, Inc.
$ 15,000
Startup Challenge California State University, Sacramento - Carlsen Center for Innovation &
Entrepreneurship
$ 15,000
Startup World Cup Sacramento
Regional Competition
HumanBulb $ 15,000
EVENT GRANT TOTAL $ 208,900
Ecosystem Building Grants
Organization Program Description Maximum Award
First round
of Grantees
(Program
beginning
ASAP)
Atrium 916 Atrium's new scale-up cohort program will
extend the 'Sacramento.Shop' program
success, and scale cottage biz into
manufacturing.
$ 178,300.00
FourthWave
Foundation
FourthWave is a non-profit accelerator for
women-led technology businesses. Our
inaugural Sacramento program launched
with a 2017 RAILS grant. The FourthWave
accelerator provides technology company
founders with mentorship, leadership
development and preparation for funding.
$ 109,650.00
StartupSac Our programs will help startups become
investment ready. Warm Up Pitch for
investor pitch decks. Founder Mastermind
for business growth. Startup Happy
Hour to connect startups, mentors, and
investors. Startup Podcast to share success
stories and fundraising insights.
$ 86,680.00
Alchemist CDC Alchemist Kitchen is a food business
incubator program that delivers support
and training to low-income and under-
resourced entrepreneurs with our 2-phase
program, providing both generalized
education and individualized coaching to
build solid foundations for each new
business.
$ 145,600.00
Sacramento Black
Chamber of
Commerce
Foundation
The project provides three platforms for
women, people of color, and youth in the
Greater Sacramento region to engage with
technology industry leaders and explore
opportunities for best practices for
workforce development.
$ 240,500.00
Lab 7 Coworking The Common Good Initiative (CGI) hosted by Lab 7 Coworking, is a wraparound
entrepreneurial experience spearheaded
by a dedicated team of culturally diverse
entrepreneurs committed to making
entrepreneurship accessible through
educational offerings and resources.
$ 207,900.00
FIRST ROUND TOTAL $ 968,630.00
Second
Round of
Grantees
(Program
beginning
January
2024)
CleanStart, Inc. Through hands-on workshops, the project will connect clean tech entrepreneurs with
residents and business owners, educate
residents on clean tech opportunities,
engage them in defining neighborhood
transformative improvements, and
enhance their work skills for cleantech
industry.
$ 59,250.00
Growth Factory Entrepreneurs are presented with real-
world industry challenges, and compete to
develop viable, innovative solutions in a 12-
week cohort, using an evidence-based
approach to entrepreneurship. Top teams
are admitted to our accelerator &
mentored for the Spark Venture
Competition.
$ 71,932.50
EmpowerTO Inc EmpowerTO seeks to democratize tech
education, targeting middle/high school
students. Offering online courses, in-
person workshops, and a citywide pitch
competition, we aim to bridge the digital
skills gap, inspiring innovation, and
fostering potential in every student.
$ 63,750.00
Momentum ASCEND Sacramento empowers
underrepresented entrepreneurs in the
clean mobility and energy decarbonization
sectors through funding education and
access. With vibrant resources and
networking, ASCEND aims to diversify
innovation and increase inclusivity in the
cleantech ecosystem.
$ 187,499.25
Black
Entrepreneur
Success Academy
In partnership with the Sacramento Black
Chamber of Commerce, the creators of
BESA seek to identify 30 Black-owned
business owners, at various stages of start-
up, to provide support and information in
community for cohorts 2 & 3 of the
Academy.
$ 23,000.00
Advocacy Chiefs The Resilience and Innovation Partnership joins powerful Entrepreneurial Support
Organizations (ESOs) nationwide, fueling
innovation and impact for underserved
entrepreneurs on a large scale.
$ 187,500.00
SliceForm, LLC Deliver a comprehensive 12-week technical skills development program to 2 cohorts,
each comprising 12 students, in product
design and innovation. The training
concentrates on key areas such as 3D CAD
modeling, the assembly and maintenance
of 3D printers, and design thinking.
$ 51,429.00
HumanBulb “Sacramento for a Smarter, Greener
Future” is a 10-week accelerator for early-
stage sustainability innovators that
incorporates knowledge sharing from
international, national, and local
ecosystems and aims to have at least 50%
of participants from underserved
communities.
$ 187,500.00
SECOND ROUND TOTAL $ 831,860.75
GRAND TOTAL $ 1,800,490.75