Starting Up
In a building belonging to a company called T-Rex, which helps business start up, hundreds of these companies have set up headquarters. T-Rex keeps its own offices on the fifth floor. Upon entering, anyone would call this the exact replica of the stereotypical start up company. The walls are painted with bright colors and huge glass windows line the walls. There is an open coworking space, where quotes are written upon the walls and entrepreneurs sit on couches using the array of computers or simply working on the latest project. There are conference rooms open to rent for those companies who do not have a formal base. There is a room with a fireplace built into the wall and a bar, where the latest reports of the 2016 presidential race are playing. This environment could easily scream “San Francisco” or “New York.” Yet, it’s sitting on Washington Avenue in downtown, this building is the embodiment of St. Louis’ very own start up scene.
Although people may not associate St. Louis with the booming start up culture that defines Silicon Valley or New York, St. Louis’ domain is rapidly expanding. From companies like Yurbuds to Velocidata, companies with new ideas are ready to call St. Louis home.
Kate Howell, director of venture philanthropy and external affairs for Arch Grants, a company which provides $50,000 grants to 20 companies out of 60 finalists in their start up pitch competition, has seen this growth first hand. She mentioned a Business Insider article which placed St. Louis as the city with the fastest growth of investment in starting companies as piece of evidence of the case.
“That’s really good news because people have been saying you can’t raise money in the midwest for a start up and that proves that it’s happening,” Howell said. “It may have been slower than other cities where they’ve been doing this for a long time and there’s a different attitude about venture capital and what it means to invest in start ups but we see that changing [in St. Louis] and that’s really exciting.”
One of the things that draws aspiring companies to St. Louis is the financial benefit. Unlike San Francisco and New York, renting office space in St. Louis is much easier and cheaper to get. The lower prices do not mean a significant drop in resources either.
Daniel Wiseman, co-founder and creative director of Pixel Press, which produces technology to allow kids to create their own video games, said, “when you’re a start up you are always watching the budget and you have to hire; [in St. Louis] there’s a huge talent pool of technically minded folks, there’s really great prices on real estate when you need an office, and there are coworking spaces.”
The proximity to Washington University, Barnes Jewish Hospital, and other institutions provide a talent pool to companies in Clayton or St. Louis looking to hire. For medical and technology fields, the research and resources in these organizations also is a plus.
Although some may look at it the other way, Howell also calls the location of the midwest a major advantage.
“If you’re trying to build a national business and you’re right in the middle, it’s a pretty good place to be,” Howell said.
Yet, the main thing that distinguishes St. Louis’ start up culture from Silicon Valley or New York, is the community.
St. Louis, being smaller than San Francisco or big start up cities, provides a close knit work space for companies and easier access to companies like Boeing or Monsanto. The friendliness has also been noted.
“You come to St. Louis and everybody is there to help you through your crazy start up life,” said Howell. “We’re all in it together.”
This tightly knit community was also praised by Wiseman. “[San Francisco] is good for a lot of people but in St. Louis, the pace and the friendliness you see is a true advantage,” he said.
As the expanding start up culture seems to be guiding St. Louis towards the market of Silicon Valley, Howell is determined that this close knit-ness will stay the same and keep St. Louis a bit different.
“People say Silicon Prairie is the Midwest and Silicon Alley is New York but we should be ourselves and should do what we do best and for us [in St. Louis] that is supporting one another,” she said.
Howell is also optimistic for the future of this local scene.
“We want there to be a whole corridor of innovation between the Mississippi and Forest Park,” she said.
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Mita is a senior at CHS and has had the pleasure of being on the Globe staff all four years of her high school career. She believes journalism to be a powerful change-maker and...