Northern State receives federal grant, matching funds of $1.5M to support entrepreneurship

A federal grant and local matching money of nearly $1.5 million will be put toward launching the Northern Innovation and Startup Center.

Northern State University and the Aberdeen Development Corp. have secured a nearly $750,000 Venture Challenge Grant from the U.S. Economic Development Administration Build to Scale Program.

This grant, and an equal amount in local matching money, will put $1.49 million toward the development of programming at the campus' Center on Rural Innovation. Matching funds were provided by the NSU foundation. Other local partners supporting the application include Dacotah Bank, Aberdeen and the Brown County Commission, according to a news release from the university.

Northern and the development corporation worked with the Center on Rural Innovation to apply for this grant as part of the center's 2022 Rural Innovation Initiative, according to the release. The initiative is a technical assistance program that empowers rural communities to create inclusive digital economies that support scalable entrepreneurship and tech job creation.

The Northern Innovation and Startup Center will aim to infuse technology startup expertise into existing entrepreneurship resources, build a local culture of tech entrepreneurship and offer ideation and incubator programming in town, per the release.

The initiative was launched in 2018 by Center on Rural Innovation and its collaborating organization, Rural Innovations Strategies Inc. To date, the program has graduated 29 communities and helped rural organizations secure more than $29.9 million to develop strategies and build out programs that can accelerate local digital economic development efforts.

Aberdeen’s participation in Rural Innovations Strategies Inc. was made possible by support from Land O’Lakes through its American Connection Project.

The startup center, which will open in November, will be housed at Northern and open to the community. It will initially be in the Beulah Williams Library, but its home will eventually be in the new building replacing Lincoln Hall.

“The work that goes into the Rural Innovation Initiative process requires intense focus, unwavering optimism and a clear vision for the future — which is why it’s been so exciting to watch these communities receive Build to Scale funding,” said Matt Dunne, founder and executive director of the Center on Rural Innovation, in the release.

Michael Bockorny, CEO of the Aberdeen Development Corp., said the organization has been looking for the best way to develop and establish technology-related jobs in the community and region.

“CORI showed us the way and helped us develop a path to make the vision a reality," he said in the release. "They allowed the ADC to select the right strategic partner and the natural fit was NSU, our regional comprehensive university ... Now, with the successful receipt of the grant, we are prepared to make a difference for Aberdeen and all of northeast South Dakota for years to come.”

Erin Fouberg, associate vice president for academic affairs at Northern, said the programming that will be developed for entrepreneurs will be available in person as well as online because the goal is not only to reach budding entrepreneurs at Northern, but those in Aberdeen and the region.

Northern State President Neal Schnoor said the funding is "a vital catalyst to build a thriving tech ecosystem in the Aberdeen area."

“Together, Northern and the ADC will infuse technology startup expertise into existing entrepreneurship resources and build a tech startup culture on campus and in Aberdeen that fosters innovation where entrepreneurs are supported, embraced and applauded. Our goal is to make Aberdeen a place where everyone has opportunities to impact growth," he said in the release.

The 2022 Build to Scale program awarded 51 grants to applicants from 31 states. The grants represent a combined $47 million in federal investment. Aberdeen was one of just eight rural applicants to receive the award this year.

This article originally appeared on Aberdeen News: Northern receives federal grant to launch innovation startup center