When it comes to growing the entrepreneurial ecosystem in the Bluff City, Epicenter Memphis is making moves. The nonprofit recently launched its Investable Memphis tool, an online platform that connects start-up companies with potential investors, mentors, and other industry professionals.
"We took it on our shoulders to see how we could turbocharge the economy," says David S. Waddell, chair of Epicenter's board of directors. "And we decided on building businesses from the bottom up. A lot of entrepreneurs in Memphis live in the shadows; they're fantastic and have cool ideas, so we wanted to push them forward and create a better way for them to get more capital."
The website currently has more than 30 participating businesses. Companies can be filtered by markets, customer types, and revenue models. There are also other filters to specifically search for Black-owned, women-owned, minority-owned, or veteran-owned businesses.
photo by Drako Martin
Jessica Taveau
"Investable Memphis is really helpful for directly connecting companies to investors," says Epicenter Memphis CEO Jessica Taveau. "We've featured companies that are really raising equity investments. They have strong Memphis presences; maybe they're an accelerator alum or have gone through programs here. We started with a smaller portfolio of companies, but we've had many others reach out to be a part of this. There's been lots of interest from both the entrepreneur and investment side, and that really demonstrates that great companies are growing right here."
Companies interested in having their information listed can reach out to Epicenter through its website and fill out a brief form. The organization doesn't require a fee, or any type of payment, to ensure the process is as smooth as possible for startups.
Once registered, startups will be able to provide a description of their work, as well as provide other info such as their capital goals, initial investors, and contact info for company leaders.
On the investor side, Investable Memphis makes getting involved with new businesses that much easier. Traditionally, investors have to abide by SEC guidelines to start a venture capital fund, which involves having a high standard of income and investable assets outside of a home. Since a private conversation with an entrepreneur isn't considered a securitized offering, it allows these conversations to happen more frequently without running into regulatory tape.
"It's more of a friend and family conversation," says Waddell. "It then gives companies the discretion of whether they let someone in for a dollar or a hundred thousand dollars."
But it’s not just solo investors that are getting paired up with entrepreneurs. Waddell points to Memphis-based Dextrous Robotics, which struck up a partnership with FedEx. “FedEx was struggling to find employees in some departments, and they realized that there were some parts of their work that could be automated,” he explains. “So they reached out to Dextrous Robotics to see if they could work together to address this issue. It’s not just random companies that you have around town; it’s businesses that are filling needs in our community, too. So it’s solving a local problem, but providing a global solution.”
Courtesy David S. Waddell
David S. Waddell
Since the platform's inception, Taveau and Waddell have wanted to make sure that Investable Memphis is reflective of the city it's serving. So far, its organic growth has mirrored the demographics of Memphis. "It’s really central to what Epicenter does to ensure that the portfolio of companies and the entrepreneurial ecosystem is representative of Memphis," says Taveau. "So we're intentional about making sure resources and capital are accessible to Black-owned businesses, women-owned businesses, and other demographics of our city."
For now, Investable Memphis is putting out a call for capital. While Memphis is one of the country's leaders in terms of philanthropic giving, Waddell says there's a greater need for investment. "We’re unbelievably philanthropic, but we don’t end up investing a whole lot in entrepreneurs and businesses like other cities have done. People are used to doing good through philanthropy, but there has to be a shift where more people start making investments, which creates sustainability.
"To me, an economist and investor, the most elegant way to beat poverty is by creating prosperity. That’s what we want to accomplish. The people coming through the doors of Epicenter are coming for capital, and their vision is that they’ll hire people grow. It’s good for the company, for investors, and for the community. They’re community builders, so I think our mission to build them is also a mission to build Memphis, but in a way that is self-replicating, rather than being an annual fundraising drive to service poverty, rather than prevent it."
If the platform takes off as intended, that means a bright future for the economy and local companies, whether they're B2B operations or medical device companies. "If we do the job right, all of us together, these 30 entrepreneurs will grow to 1,000," says Waddell. "With the money flowing through the economy, we’ll have a much better system in place for the future."
