It’s finally Friday, the three words that are music to my ears each and every week, especially as we’re in that time of year when there are too many things going on and not enough time to get to all of it. I’m looking forward to sleeping in a few extra minutes, until one of our cats inevitably starts screaming for food.
Today, we have the scoop on two new venture funds that BioGenerator is setting up. It’s a step up for the nonprofit, which has been making early-stage investments for the better part of two decades. We also have the details on a bill set to go before the St. Louis Board of Aldermen that would pause any new data centers in the city. Plus, St. Louis’ inflation is below the national figure, a new downtown hotel is angling for a high sales tax rate, and NewLeaf Symbiotics is moving into bigger digs.
Clark discusses the impact of the Delmar Divine, how to recognize a good idea, and things St. Louis could learn from other cities. Add to your queue on YouTube or Spotify 🎧 »
BioGenerator head Jim McCarter presents during the organization's Startup Connect event on Sept. 11 in St. Louis. Photography by Eric Schmid
DEEP DIVE
BioGenerator will set up two for-profit venture funds
BioGenerator, the startup arm of BioSTL, is creating two venture capital funds to invest in companies focused on digital health and research tools and services, BioGenerator’s head Jim McCarter announced yesterday.
It’s part of his mission to grow the scale and visibility of BioGenerator’s work, something McCarter has had an eye on since joining the organization.
The new for-profit “venture studio collaborations,” as McCarter describes them, are still in the process of being formed, but his organization plans to work with other venture funds and have limited partners join as investors. Importantly, BioGenerator will still maintain its nonprofit status, he adds.
“We need to do more, and we are going to do that through greater visibility, so that people are more aware of who we are and what we do, and through greater scale to bring more resources to bear,” McCarter says.
Why It Matters: Over the past two decades, BioGenerator has invested $50 million while supporting the launch of 130 companies, 80 of which are still active in its portfolio, as well as 20 that made successful exits. The returns from those exits have enabled future investments, McCarter explains. The organization also provides low-cost lab space and mentors companies through development with its entrepreneurs-in-residence.
While those elements have made an impact, McCarter says there’s opportunity to do much more. “It's really insufficient today to meet the needs of the growing biotech innovation ecosystem in St. Louis,” McCarter says.
What’s Next: The new venture studios are organized to support companies working in digital health (including telemedicine, social determinants of health, behavioral health, cloud-based services, and other focuses), as well as research tools and services (what McCarter calls “the picks and shovels of life sciences”).
BioGenerator has partnered with New York-based Redesign Health on the digital health venture studio, and it’s establishing Hypha Life Sciences as the venture studio focused on founding and building research tools and services companies, with leadership from David Smoller, Cory Berkland, and Tom Cohen.
Says McCarter: “We see these first two venture studios as the start of a broader effort to build additional for-profit venture funds in the years ahead.” — Eric Schmid
A MESSAGE FROM MEDICA
A new nonprofit employer health plan
Medica Health Plans now offers employer coverage for businesses in STL. Find trusted care, flexible plan options, and local support for smiling, healthy teams.
Feds said developers accused of fraud would repay tax breaks. The check only covers half (stltoday): New U.S. attorney Thomas Albus hand-delivered a $1 million check to City Hall last month on behalf of developers Vic Alston and Sid Chakraverty, who had been charged with fraudulently using the city’s minority subcontracting program to score property and sales tax breaks. Those tax breaks were valued at more than twice the amount paid back, according to the indictment.
Jefferson Arms project may boast city’s highest sales tax rate after Port Authority vote (St. Louis Public Radio): Port Authority commissioners voted to approve a “port improvement district” for the Jefferson Arms project, as Alterra Worldwide seeks the approval of two other taxing districts that would each add a 1 percent sales tax to purchases made at the development. If all of the taxing districts are approved, customers would pay a 12.67 sales tax on purchases made at the development.
NewLeaf Symbiotics moves into former Benson Hill space, poised for growth and profitability (St. Louis Business Journal): The agtech startup moved into 25,000 square feet of office and lab space in the EDGE@BRDGE building. NewLeaf makes bacteria-based products to boost crop yield and repel pests and fungi; it reports 45 percent revenue growth between fiscal years 2025 and 2026.
Inflation in St. Louis is lower than the national average, up 2.6 percent from last year, compared to a rise of 2.9 percent nationally, according to the Consumer Price Index. Photography by claffra / iStock / Getty Images Plus
Watercooler
⚡ ST. LOUIS ALDERMEN TO CONSIDER DATA CENTER MORATORIUM
Alderwoman Anne Schweitzer says she'll introduce a bill next week that would put a moratorium on new data centers. Schweitzer says she was catalyzed by the debate in St. Charles, where residents’ vehement opposition to a $1 billion project led to the developer withdrawing the proposal and the city council to passing a one-year moratorium on considering new projects. The city of St. Louis had been studying data centers, with a memo issued by the executive director of the city’s Planning Commission suggesting the city’s zoning code is not currently prepared to deal with them. That memo spurred the commission to vote unanimously Wednesday in favor of a moratorium. “There are cities of smaller sizes across the country that are having to lead the regulation charge in data centers, because that's where the buildings or land is available to build these,” Schweitzer says. St. Louis and St. Charles aren’t the only government entities inspired to get ahead of the issue (or at least not fall further behind). At the August 27 meeting of the East-West Gateway Council of Governments, St. Charles County Executive Steve Ehlmann asked the board if they felt the topic was something the organization should research. Members agreed, and staff now plans to share what they learned at the meeting in October, a spokeswoman says. —Sarah Fenske
📉 STL INFLATION IS LOWER THAN NATIONAL AVERAGE
The Consumer Price Index that dropped yesterday contained some not-so-great news for the national economy: Inflation is up 2.9 percent over the past 12 months, inching up two-tenths of a percent from July’s index. But in St. Louis, things aren’t quite so bad, with inflation up 2.6 percent locally from last year. That puts us about average among the U.S. cities surveyed. Los Angeles and Philadelphia both lead the way with 3.3 percent inflation, while Detroit clocked in at less than 1 percent. Driving the increase across the country? The cost of food is up significantly: Beef steaks are up 16.6 percent, with eggs up 10.9 percent. Coffee is up 20.9 percent. Unfortunately for those people riding out the shaky economy with a clunker, vehicle repair is also up 15 percent. —S.F.
The Great Forest Park Balloon Race presented by PNC Bank returns for its 53rd annual weekend! Join them on September 19 and 20 for this free St. Louis family tradition. Learn more.
CLOCK OUT
What is one thing you would change about the St. Louis metro area business environment and why?
“In the last 20 years of my career, I have seen St. Louis be on the losing end of corporate mergers and acquisitions, losing key jobs and industry expertise. I would love to see us go on the offensive and look to bring in new companies and industry. Find a way to specialize in an area and expound the supply of talent. I believe if leaders in the area would focus here, many of the area’s troubles could be improved, and we can become a destination place for many.”
—Jason Goodson, Mallinckrodt Pharmaceuticals executive vice president and chief strategy officer
