The Sugar Land Starts Innovation Fund Program is designed to attract and incentivize high-growth startups within the city’s target industries to relocate to Sugar Land, helping to cultivate a vibrant, innovation ecosystem that is envisioned in the city’s Strategic Action Plan.

The big picture: The Sugar Land Starts Innovation Fund aims to support the city’s long-term vision by building an innovation ecosystem, while revitalizing empty office space, according to the release.

The performance-based program will target startups in key industries including:

  • Life sciences
  • Advanced manufacturing
  • Information technology
  • Business and professional services

How it works: To qualify, companies must generate at least $250,000 in revenue or have $500,000 in backing from a bank or venture capital and must relocate at least three full-time employees to the city for at least three years with an average annual salary of $61,240, per the release.

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The program includes two phases:

• Phase 1, for smaller startups (Less than 15 employees)

• Phase 2, for larger startups (Greater than 15 employees)

A key objective of the program is to diversify Sugar Land’s economy by bringing in high-growth companies that can scale locally.

Phase One Incentive

The startup must meet the following criteria:

$50,000 Incentive

  • 3+ starting local Full-Time Employees
  • Product is Market-Ready
  • Demonstrated market demand with early customer or revenue traction (Pilots, LOIs, Contracts)
  • Startup will HQ in Sugar Land for at least 3 years
  • Must fall within Sugar Land Target Industries
  • Projected to create 15 or more new jobs in Sugar Land over duration of agreement

$100,000 Incentive

  • 5+ starting local Full-Time Employees
  • Considerable market demand demonstrated through customer and revenue traction (Pilots, LOIs, Contracts)
  • Product is live in market
  • Startup will HQ in Sugar Land for at least 3 years
  • Must fall within Sugar Land Target Industries
  • Projected to create 25 or more new jobs in Sugar Land over duration of agreement

$150,000 Incentive

  • 7+ starting local Full-Time Employees
  • Demonstrate quarter-over-quarter revenue growth over the last 12 months
  • Demonstrated the ability to drive rapid growth
  • Clear roadmap for scaling with detailed milestones
  • Startup will HQ in Sugar Land for at least 3 years
  • Must fall within Sugar Land Target Industries
  • Projected to create 30 or more new local jobs over 3 years

Phase Two Incentive

Funding amount will be negotiated based on available funding up to $300,000, jobs, wages, capital investment, and fulfillment of the following minimum requirements:

  • 30+ starting Full-Time Employees
  • Must maintain HQ in Sugar Land for at least 5 additional years
  • Clear roadmap for scaling with detailed milestones, including hiring plan and number of projected jobs created
  • Demonstrated quarter-over-quarter revenue growth over the last 12 months
  • Must have at least 75 employees by the end of the agreement