Memphians commit $40M to aid firms
The moon mission set up to launch a wave of Memphis entrepreneurs has raised $40 million.
Epicenter, the agency spun out of the Greater Memphis Chamber’s 2014 moon missions, announced Wednesday that local organizations and individuals had committed the money.
The $40 million is intended to help finance new and young growing businesses in a region short on venture capital.
“We think this is a really strong signal of Memphis’ commitment to this movement,” said Leslie Lynn Smith, Epicenter chief executive officer.
Epicenter, formed in 2015, aims to aid 1,000 entrepreneurs by 2025, including 500 startup businesses.
Smith said the $40 million is considered a milestone. Memphis-based FedEx Corp. committed the first $10 million on the condition Epicenter raise $30 million more in the Memphis area.
“We made a commitment to raise a significant amount of investment locally,” Smith said, noting corporations, philanthropies, investors and individuals committed money.
These individuals consist of a number of Memphis investors known for civic causes, she said. These include manufacturer and philanthropist Hilliard Crews, investor John Dobbs, financial executive Duncan Williams and philanthropist and Holiday Inn heir Spence Wilson Sr.
Epicenter intends to raise $100 million in total. Fundraising efforts will extend to national organizations such as the Walmart Foundation and federal agencies that provide economic development grants, Smith said.
So far, Epicenter has aided 450 entrepreneurs, including 280 firms that have scaled up, she said.
“Over the course of a decade I actually think we’ll beat the numbers,” Smith said, referring to the 2015 goals of aiding 1,000 entrepreneurs by 2025.
Epicenter would control one of the Mid-South’s largest venture capital funds if it can raise the entire $100 million. Venture capital refers to money used for research, development and operations by new firms before they generate large profits and can obtain commercial bank loans.
Moon missions was the label the Greater Memphis Chamber’s Chairman’s Circle used to describe initiatives intended to invigorate the area after the 2008 recession wiped out more than 1,500 enterprises in metropolitan Memphis.
Smith, who had led a Detroit economic development initiative named TechTown, was hired in 2015 to head Epicenter. She is not related to FedEx founder Frederick Smith.
Reaching the $40 million milestone led to several corporate executives issuing statements released Wednesday by Epicenter:
❚ “Entrepreneurs and the businesses they build have the power to transform communities, boost the economy and improve lives,” said Frederick Smith, FedEx chairman. “As a company founded on innovation, FedEx is proud to support entrepreneurs in our hometown of Memphis as they grow and connect communities around the world.”
❚ “As a vital part of the business community in Memphis, we believe in supporting local entrepreneurs to ensure that the next industry-disrupting idea that’s out there has the chance to grow and prosper,” said Richard W. Smith, chief executive of FedEx Trade Networks and chairman of the Greater Memphis Chamber. “Strengthening the local resources entrepreneurs and small businesses need to scale is critical if we want to grow the economy in the Memphis region.”
❚ “The momentum created by the FedEx Challenge Grant has activated critical financial support from philanthropic leaders, legacy founders and other corporate partners for local entrepreneurs through Epicenter,” said David Waddell, Epicenter board chairman and chief executive of Memphis financial adviser Waddell and Associates. “These contributions set the tone for our ambitious economic development goals and broadcasts to entrepreneurs and investors here and outside of the region that Memphis is investible.”