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$2m incentive fund to lure business to Health-Tech Corridor


Since 2011 the Health-Tech Corridor (HTC), the three-mile stretch in Midtown between downtown and University Circle, has been quietly building a hub for health, high-tech and research companies.
 
Today more than 160 such endeavors in biomed, technology and other industries are operating in the HTC, creating an entrepreneurial hub touting amenities such as a 100 gigabits-per-second fiber optic internet pipe – the first of its kind in the country – and access to nearby universities and medical centers.
 
Now HTC officials have partnered with JumpStart to build a $2 million fund to foster even more activity. “We’re really excited to use the fund as a carrot to attract businesses to the corridor,” says HTC director Jeff Epstein, adding that 90 percent of the 500,000 square feet of renovated office and lab space is already filled.
 
But there is plenty of room for any company looking to relocate on the HTC’s 1,600 acres. “We’ve got space for whoever wants to come,” Epstein says. “Early stage companies can get anchored here.” He also notes that Geis Companies’ developments in the area, the Beauty Shoppe co-working space and the new University Hospitals campus add to the corridor’s draw.
 
The HTC and JumpStart raised $1 million for the fund through grants from the Cleveland Foundation, the City of Cleveland and private investments, which was then matched with another $1 million by the Ohio Third Frontier.
 
Companies seeking investment from the fund must have a unique or breakthrough idea, have at least a $1 billion addressable market and exit potential. They must also demonstrate excellence in their fields.
 
Epstein says a fund awareness campaign started last month, while officials at the HTC and JumpStart have been brainstorming attraction campaigns for the past nine months. “We launched social media campaigns in high-cost markets and targeted alumni from local universities,” he explains. “We going for the low-hanging fruit first.”
 
Epstein says more than 20 companies have already expressed an interest in applying for funding. Companies that do apply must go through a full vetting process with JumpStart.
 
“We don’t just give the money away,” explains Epstein. “But companies who don’t get an investment with us will hopefully be turned on to opportunities in Cleveland. The best problem we could have is too many companies interested.”

Read more articles by Karin Connelly Rice.

Karin Connelly Rice enjoys telling people's stories, whether it's a promising startup or a life's passion. Over the past 18 years she has reported on the local business community for publications such as Inside Business and Cleveland Magazine. She was editor of the Rocky River/Lakewood edition of In the Neighborhood and was a reporter and photographer for the Amherst News-Times. At Fresh Water she enjoys telling the stories of Clevelanders who are shaping and embracing the business and research climate in Cleveland.
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