A new initiative approved by the Raleigh City Council this week calls for a variety of incentives – from funding to grants and more – in its attempt to lure and to grow startup businesses.

A key point of emphasis is on new ventures related to technology – for good reasons, says James Sauls, who heads up economic development efforts for the City of Raleigh.

“Technology is a sweet spot for us as we have the talent, companies and university infrastructure to support it,” Sauls tells WRAL TechWire in an exclusive interview.

The City will be backing the program with cash in the form of grants and other funds with a first-year allotment of $100,000.

“[A] grants program is one of several programs that are being considered,” Sauls said. “The City has committed $100,000 for the 2015 budget year.”

Guidelines for how grants and other funding will be provided are still to be determined, Sauls explained.

Just who will direct the program also remains to be worked out.

“However we do see a public/private partnership developing to assist with the programs,” Sauls said.

Downtown is already home to the headquarters for Linux software leader Red Hat, and Citrix Sharefile is building a new headquarters in the warehouse district. Other tech firms are also growing their presence downtown.

The Triangle’s universities are seen by corporate recruiters as lucrative spots to find new talent. For example, just last week executives from networking giant Cisco said they hired more engineering graduates from N.C. State than any other university.

The campaign would seek to augment startup-focused entrepreneurial hubs in Raleigh such as HQ Raleigh and the Underground@Raleigh, which is owned by Capitol Broadcasting (WRAL TechWire’s parent company).

Asked if Raleigh was stepping up its efforts as the city competes with other metros such as Austin, Texas, for new tech firms and expansions, Sauls didn’t answer directly.

“To support our local entrepreneurs and startup companies,” he said.

However, Raleigh recently sent a delegation including Mayor Nancy McFarlane to Austin for the annual South by Southwest arts and technology festival. The City had a booth and actively recruited people looking for jobs as well as companies seeking new homes.

While some of the details of the program are still to be determined, Sauls pointed out that it is not just intended for new businesses.

“Yes,” he said when asked if the program will boost recruiting, “but more importantly it will help our existing industry program as the majority of our start-ups are from the local community and universities.”

This also is not a solo effort. The City also plans to work with various organizations, such as the Council for Entrepreneurial development and the North Carolina Technology Association, to help promote the city and to boost those group’s efforts to grow companies, Sauls added.

A formal launch date for the program has not been set, but Sauls said the City will promote it broadly “via social media, community partners and media.”

Overview of the City’s Plan

In announcing the plan, the City said it would target technology, fashion and what it describes as “makers.”

While the startup recruitment plan is “still in the planning stage,” the city says highlights could include:

  • Public/private matching grants;
  • Beta testing and prototyping program;
  • Start-up challenge program;
  • Crowdfunding or Kickstarter matching funds; and,
  • Entrepreneurial exchanges with other cities.

Crowdfunding legislation, which would enable more people to invest in startups, is being considered by the North Carolina General Assembly.

Kickstarter refers to programs through which companies raise funds for new products by offering incentives to early buyers.

The City also recently published an economic development guide as part of its “R4U” or “Raleigh’s for You” campaign. R4U includes a website focused on economic development-related news.

Targeted for recruitment are startups focused on:

  • Technology
  • Social innovation
  • Fashion
  • Designers and makers (stressors of new and unique applications of technologies and encouragers of invention and prototyping)

The effort is part of a campaign led by Sauls, the city’s economic development director, and municipal leaders to recruit more businesses to Raleigh. Sauls was named to the City post last fall. He worked previously in an economic development role at the greater Raleigh Chamber of Commerce.