As Traverse City\u2019s new Freshwater Research & Innovation Center (FRIC) draws closer to its tentative early 2027 opening date, 20Fathoms is working to recruit new startups for the space.<\/p>\n
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Earlier this month, 20Fathoms announced a partnership with Gener8tor<\/a>, a Madison, Wisconsin-based venture capital fund that runs startup accelerators all over the country. Together, the two organizations are hosting the first-ever Northern Michigan BlueTech Accelerator, which includes eight freshwater-focused startups \u2013 some of which have expressed interest in setting up shop at FRIC.<\/p>\n
<\/p>\n Kristen Gibbs is Gener8tor\u2019s director of gBETA, the accelerator model 20Fathoms selected for its new program. She says the gBETA model is designed for fledgling startups, in that it is free to participate and \u201cdoes not come with any kind of dilutive funding.\u201d<\/p>\n
<\/p>\n \u201cIn this case, 20Fathoms is providing an opportunity for these companies to be evaluated by the 20Fathoms Innovation Fund, so there is some potential investment up for grabs,\u201d Gibbs says. \u201cGenerally speaking, though, gBETA is a free seven-week program for companies to come through, start prepping for fundraising, and scale up sales so they can prep for a more intensive investment accelerator.\u201d<\/p>\n
<\/p>\n Funding for the accelerator comes from the $2 million Build to Scale grant 20Fathoms received in 2023<\/a> from the Economic Development Administration, part of the United States Department of Commerce. That grant was accompanied by another $2 million in matching support, provided by the Michigan Economic Development Corporation and a collection of local partners.<\/p>\n
<\/p>\n The startups participating in the new accelerator include businesses that combat harmful algal blooms, convert water pollutants into biomass, assist hotels and multi-tenant buildings in reducing water waste, and deploy drones to streamline stormwater and wastewater tunnel inspections. Gibbs says applicants were evaluated \u201cthrough a venture capital lens,\u201d with the participants selected \u201cbased on strong potential for growth.\u201d<\/p>\n
<\/p>\n \u201cAbout half the cohort is Michigan-based, so they were already familiar with Traverse City. But a number of the participants were not, and they got really excited when we started talking about FRIC and about how Traverse City is trying to become this hub for freshwater innovation,\u201d Gibbs says. \u201cWe even got to tour FRIC during kickoff, and we ended up with a couple folks who expressed interest in establishing themselves there.\u201d<\/p>\n
<\/p>\n One of those folks was Eamonn Powers, a graduate student at Grand Valley State University and the founder of the startup Thalweg. Tasked with developing population estimates for lake sturgeon in the Grand River, Powers built a proprietary software that uses machine learning to turn sonar recordings into fish count data. After analyzing two seasons of Grand River data, Powers is ready to expand Thalweg. He sees northern Michigan and things like Fishpass and the Grand Traverse Band\u2019s lake sturgeon project<\/a> as avenues where his technology could be useful, and says he plans to relocate Thalweg to Traverse City once he finishes his master\u2019s degree.<\/p>\n
<\/p>\n According to 20Fathoms Executive Director Stacey Feeley, accelerator graduates like Powers will have multiple incentives to put down roots in northern Michigan, including possible capital funding, stipends to help cover moving expenses, access to office and\/or research space at FRIC and 20Fathoms, and more.<\/p>\n
<\/p>\n Traverse Connect will pitch in with complimentary tickets to its annual economic development events and referrals to the Northern Navigator program, which can \u201csupport these founders with all aspects of relocating, whether it\u2019s related to housing, childcare, business connections, or helping a trailing spouse or partner find a job,\u201d says Katherine DeGood, director of marketing and communications.<\/p>\n
<\/p>\n \u201cIt goes beyond just giving them some money to help them move here,\u201d Feeley adds of the incentive package. \u201cWe\u2019re really going deep with helping these people envision what their lives might look like in this community.\u201d<\/p>\n
<\/p>\n While the startup founders were all on the ground in Traverse City earlier this month for a three-day accelerator kickoff, most of the gBETA accelerator is being delivered remotely.<\/p>\n
<\/p>\n \u201cIt\u2019s seven weeks of virtual programming,\u201d Gibbs says. \u201cI do one-on-one strategy sessions with each of the founders twice a week. We host community lunch-and-learns that cover topics ranging from startup legal 101, to markets and competition, to figuring out cashflows and financing milestones. We also have curated mentor swarms, which are speed-dating-style meetings with subject matter experts, business experts, and industry professionals. And then the last week of the program, we’ll put these founders in front of angel investors, investment accelerators, and venture capital firms.\u201d<\/p>\n
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