The McKinney Economic Development Corp. is updating its Innovation Fund grant program, with qualifying early-stage startups now able to earn up to $200,000 of non-diluted capital. That’s up from the previous grant maximum of $50,000.

Companies that agree to locate their primary HQ in McKinney for three years will earn their full grant award—and established or relocating later-stage startups may qualify for up to $500,000 in support, MEDC said.

“By increasing the Innovation Fund grant limit, we’re expanding our reach of deals, further aligning with our strategic partners, and filling a large market need for early-stage funding,” MEDC Project Manager Mike Wilkes said in a statement. “In just this past year we’ve made huge strides in establishing McKinney as the best place to build a business, especially a startup.”

Wilkes took to LinkedIn to say more. “This increase is one of many steps we’re taking to establish McKinney as the AI Hub of Texas,” he wrote.

45 startups supported since 2020 as a ‘key to McKinney’s growth strategy’

Since 2020 the MEDC said it has successfully supported 45 startups, creating an estimated 931 local jobs with an average salary of over $80,000.

MEDC said that the Innovation Fund’s expansion will help with McKinney’s broader vision of becoming a central hub for tech and AI innovation in North America and secure its spot as one of the top places in the world for startups seeking growth opportunities, investor interest, and community support.

McKinney expects to attract companies at a critical growth phase, accelerating their trajectory while fueling the local economy via the increased grant funding.

“Investing in innovation is key to McKinney’s growth strategy,” MEDC President Michael Kowski said in a statement. “With our expanded resources and strategic partnerships, we’re fostering a startup-friendly environment that appeals to serial entrepreneurs and drives economic impact faster and more efficiently.”

The MEDC launched earlier this year a partnership with Plug and Play, a global innovation platform that opened a local office in McKinney to support its startup ecosystem, including leveraging corporate connections and special events to accelerate deal flows and ultimately create an AI Center of Excellence.

MEDC said this collaboration is set to invigorate the local innovation landscape by connecting startups, partners, clients, and investors.

Ed. Note: An earlier version of our story on the Innovation Fund misstated the amount in the subtitle as “half a billion” dollars. The correct figure is “half a million” dollars.

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