INSUBCONTINENT EXCLUSIVE:
Bill Baumel
Contributor
Bill Baumel is Managing Director at the Ohio Innovation Fund
After twenty years in Silicon Valley - 4 public companies and 10 major acquisitions - Bill came home to the Midwest creating OIF, whose 14
companies have attracted partners such as Microsoft, Facebook, SAP, and Sanofi, providing SaaS, cyber, AI/ML and med tech solutions to a
majority of the Fortune 500.
In developing VC markets such as the Midwest, some may think that funding from the government or economic
development organizations are a godsend for local entrepreneurs
Startups are often looking for all the help they can get, and a boost in funds or an attractive set of economic incentives can be perceived
as the fuel they need to take the next step in their growth journey.
While this type of funding can be helpful, a startup should ensure that
funding from these sources is not a double-edged sword
The biggest positive, of course, is the money, which can help startups with product development, hiring, marketing, sales and more
But there can also be certain restrictions or limitations that are not fully understood initially—these restrictions could hinder growth
at an inopportune time later on.
The inevitable question, then, is should startups consider partnering with the government or various
economic development groups as they look to get off the ground Let take a closer look.
What Local Economic Development Organizations Have to
Offer
Today, particularly in the Midwest, it common for state and local governments to offer startups incentives such as tax exemptions or
grants in an effort to keep local businesses around and also attract companies from other regions.
So how do these incentives work When it
comes to tax credits or exemptions, local governments are sometimes willing to provide these incentives if a startup can demonstrate how
paying lower taxes will benefit the wider community.
