OneValley PassportOS Blog

Overcoming Challenges: How Build-to-Scale Grants Support Innovation Ecosystems

Written by Sabah Baxamoosa | Oct 8, 2024 4:06:56 PM

What is the Build to Scale Program?

The Build to Scale (B2S) program is a federal grant initiative from the U.S. Economic Development Administration (EDA), aimed at fostering economic growth by supporting technology-driven businesses and innovation ecosystems. Through this program, eligible entities like nonprofits, universities, public-private partnerships, and economic development organizations can access funding to enhance entrepreneurial capacity, increase access to capital, and support high-growth industries. With a strong focus on innovation, Build-to-Scale grants empower regions to create sustainable, high-wage jobs and drive competitive advantages on a global scale.

The B2S program invites applications from organizations supporting high-growth startups and entrepreneurs who are focused on deploying transformative and emerging technologies. The program aligns with EDA’s strategic priorities of fostering regional innovation ecosystems, particularly in critical industries such as advanced manufacturing, biosciences, clean energy, and artificial intelligence.

Key goals include:

  • Strengthening regional economies by supporting innovation-driven industries.
  • Building public and private capacity to help entrepreneurs invent and bring to market new products and services.
  • Increasing access to capital, especially for underserved communities.

EDA expects to award up to $5 million per project, with an estimated 40-50 awards. All applications are due by October 28, 2024.

Challenges for Technology Entrepreneurs 

The Build to Scale program is rooted in technology-based economic development to enable business growth and overcome various obstacles technology-driven businesses face depending on their industry, location, and market conditions. The Build to Scale (B2S) program, run by the U.S. Economic Development Administration (EDA), offers funding designed to address issues around an organization’s capacity to create new technology products and services and boost economic growth.

 

Here's how Build to Scale Tackles Some of These Challenges:

Offering Access to Capital

Securing funding is a major hurdle for entrepreneurs developing new technologies. B2S projects can address this by:
  • Connecting entrepreneurs with investors and other funding sources within regional technology clusters.
  • Building capacity for due diligence and closing investment deals
  • Supporting the creation and operation of investment funds focused on scalable startups in specific technology areas.

Accelerated Businesses Scaling

Moving from concept to market requires resources and support. B2S enables organizations to:
  • Provide entrepreneurs with access to equipment, facilities, expertise, and other critical resources for commercialization.
  • Offer programming that helps companies grow and compete in established markets.

Minimize Regional Disparities

Entrepreneurial ecosystems vary in their strength and resources. B2S aims to:
  • Strengthen regional economies by supporting industries of the future and fostering innovation.
  • Empower communities
  • to provide proof-of-concept and commercialization assistance tailored to their specific needs.

Support Equity and Inclusion

B2S prioritizes equitable access to opportunities and aims to:
  • Support projects that benefit underserved populations and communities, such as those in Tribal Lands, Persistent Poverty Counties, and rural areas.
  • Broaden participation in technology entrepreneurship by reaching out to diverse stakeholders and historically underserved populations.

Offer Sustainability Beyond Federal Funding

B2S encourages long-term impact by requiring applicants to:

  • Develop a sustainability plan outlining strategies for continued operation and self-sufficiency after the grant period.
  • Demonstrate how their project will generate lasting value for the regional entrepreneurial ecosystem by building upon existing assets.

Eligibility Requirements for Build-to-Scale Grants

To be eligible for a Build to Scale grant, your organization must fall into one of the following categories:

Government Entities: States, Indian tribes, cities, or other political subdivisions
  
Non-Public Entities: These include nonprofits, higher education institutions (not fully public), public-private partnerships, science or research parks, federal labs, venture development organizations, and economic development organizations focused on innovation.

Consortiums: Groups comprising any combination of the above entities are also eligible to apply.

The Seven Evaluation Criteria Used by EDA to Assess Build-to-Scale Grant Applications:

1. Project Quality (10 points): EDA looks at how well you’ve designed your project, including your goals, timeline, and how it fits with local resources. They also want to see how private partners and capital are involved.

2. Economic Impact (10 points): This measures how much your project will boost job creation and promote inclusive, long-term economic growth in your region, especially in key industries like climate tech.

3. Capital Access (10 points): EDA wants to know how your project will help businesses get better access to funding, especially in areas where capital is hard to find.

4. Partnership Commitments (5 points): Strong partnerships are key. The more committed and relevant your partners are—especially private sector ones—the better.

5. Talent and Workforce (5 points): EDA will assess how your project plans to build and retain a skilled workforce, including offering training or apprenticeships.

6. Equity and Diversity (5 points): Projects that support underserved communities, addressing barriers and creating opportunities for everyone, score higher.

7. Tech Hubs or NSF Engines (5 points): If your project aligns with a designated Tech Hub or NSF Engine and you have a letter of endorsement, you’ll earn extra points for collaboration.

How to Maximize Success in Your B2S Application

For potential applicants using platforms like OneValley's PassportOS, focusing on innovation and scaling entrepreneurship is key. Organizations should demonstrate a clear understanding of their regional assets, opportunities for technology commercialization, and strategies for increasing access to capital. Successful projects will likely show a strong commitment to equitable development, leveraging regional resources to support innovation-driven sectors.

To create a compelling proposal:

  • Clearly define how your project aligns with EDA’s goals of enhancing regional competitiveness in critical technology areas.
  • Provide data and evidence showing how your initiative will impact the regional innovation ecosystem, with a specific focus on job creation and economic growth.
  • Include a robust sustainability plan to ensure the project’s continuation after the federal funding period ends.

With B2S, organizations can play a pivotal role in driving the future of the U.S. economy by fostering new technologies, promoting innovation, and ensuring that underserved communities are not left behind in the process of economic development.

How OneValley can support your application:

The Build to Scale (B2S) program is a powerful opportunity for organizations supporting technology entrepreneurs. However, the complex application process can be challenging. OneValley’s PassportOS simplifies this by offering a streamlined, data-driven platform to manage projects and collaborate with stakeholders.

1. Centralized Management

PassportOS provides a central hub for managing entrepreneurship initiatives. It allows B2S applicants to easily track progress, monitor milestones, and manage project data, ensuring alignment with B2S goals.

2. Streamlined Application and Evaluation

With customizable workflows, PassportOS simplifies complex applications. The platform supports:

  • Seamless application submission, where users can save progress and upload documents.
  • Efficient evaluation processes, enable judges to score and review all in one place.

3. Data-Driven Insights

PassportOS offers real-time analytics to track key performance metrics like economic impact, job creation, and access to capital—helping applicants strengthen their case with data

4. Collaboration and Resource Sharing

The platform fosters collaboration by connecting startups with investors, mentors, and corporate partners. Its subcommunities enable resource sharing among different stakeholders

5. Equity and Inclusion

With B2S’s focus on underserved communities, PassportOS helps target diverse populations, supporting efforts to promote inclusivity and track equity initiatives​

  1. Long-Term Sustainability

PassportOS helps applicants create and implement sustainability plans to ensure that initiatives continue after the B2S funding period​ through its Strategic Services arm and RoundZero, its philanthropic venture fund. 

By leveraging PassportOS, B2S applicants can provide a robust platform to support the tech-driven businesses in their regions, enhance collaboration, and ensure long-term project success.