The Greater Des Moines Partnership plans to open a new business accelerator, Square One DSM, on May 1.

The new facility, located in the East Village’s Northwestern Hotel near the Global Insurance Accelerator, will look to plug the gap between the companies that are in the incubation stage and fully funded startups, said Mike Colwell, who will run the program as the Partnership’s executive director of entrepreneurial initiatives. 

“That can be a tough place,” Colwell said.

In a way, Square One DSM takes the next step for the Des Moines area after the closure of StartupCity Des Moines, Colwell added. An advisory panel will help choose which applicants will be accepted. The guidelines are still in the works.

The companies in the gap have high potential to succeed, but need long-term support that isn’t available now, Colwell said. 

“We will be focused on people with some traction,” Colwell said. “We won’t have a single class, this will be continuous. And we will tailor the offerings to the specific needs in each case.”

Something else is different — the financial model.

“We won’t provide money, but we also won’t take equity,” Colwell said.

“The companies might need help with mentorship, or planning,” he added. “They might need help with fundraising.”

At the end of six months, the companies should be on their way, and out of the accelerator, Colwell said. 

When the Partnership launched the Business Innovation Zone (BIZ) in 2007, Des Moines was not very entrepreneur friendly. Startups surged after the recession. StartupCity launched in 2010. Plains Angels followed in 2012 bringing better access to capital with $4 million invested to date. Square One DSM is the next step in supporting local entrepreneurs, Colwell said. 
 
Square One DSM will provide free working space, access to mentors and investors, and a focus on customer acquisition, among other things. The BIZ brand will be retired. However, all events and activities of the BIZ will continue as part of Square One DSM.
 
Those interested in additional information about this new initiative can contact Colwell at mcolwell@desmoinesmetro.com or visit www.squareonedsm.com.