Funding is a crucial factor in the early success of companies, yet it often remains out of reach for many founders, especially those based in Kentucky. In 2023, Kentucky's share of venture capital deals nationwide was just 0.38%, according to Pitchbook.
Community leaders are working to change this with SparkHaus, Northern Kentucky's new entrepreneurship hub. eGateway Capital, the largest venture capital firm in the Commonwealth, will relocate its headquarters to SparkHaus as part of this initiative.
"From this project's inception, we wanted eGateway at the table," Kenton County Judge/Executive Kris Knochelmann stated. "Having eGateway sign the first lease at SparkHaus is a sign of good things to come. Managing Partner Chad Summe and the eGateway team are leaders in the Commonwealth, and we want the entrepreneurs who call SparkHaus home to benefit from their knowledge and resources."
eGateway will occupy approximately 4,000 square feet within SparkHaus, becoming one of its marquee tenants. The space will include an entrance from Madison Avenue in Covington's business district.
This move follows eGateway closing a $94 million fund for investing in growth-stage tech companies in e-commerce and supply chain sectors. Since 2021, eGateway has raised $120 million and invested over $60 million across 14 companies.
"SparkHaus addresses a few key needs that we believe will have an outsized impact on our region’s growth for decades to come," said Chad Summe. "It’s a hub for decision makers with financial capital to meet local entrepreneurs and larger business owners and ultimately a space where our technology companies can hire and house their first local employees."
Blue North Executive Director Dave Knox commented on SparkHaus's mission: "Our goal with SparkHaus is to give our entrepreneurs unparalleled access to the funders who can help them at any stage of their growth story."
SparkHaus was unveiled in January through a partnership between Kenton County, Northern Kentucky Port Authority, and Blue North. It aims to provide Northern Kentucky entrepreneurs with resources needed for community-changing ventures. Once completed, it is expected that between 200 and 300 people will use the space daily.
Construction began in late September under Urban Sites' leadership with City Studios as architect. The $16 million project has financial backing from several organizations including Catalytic Fund and Duke Energy Urban Revitalization Initiative.
SparkHaus is anticipated to open by late summer 2025.