EmergeMemphis incubator to renovate space for 15 new tenants

After a year-long fundraising campaign, business incubator Emerge Memphis will build out the fourth floor of its building and make room for an additional 15 companies.

Emerge received a $600,000 fast-track infrastructure grant from the state, along with donations of $150,000 from Hyde Family Foundation and $125,000 from Kemmons Wilson Family Foundation to cover construction costs.

Emerge president Gwin Scott says construction could begin in early 2008 and take up to five months to complete.

Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development, says the state has a strong history of supporting Emerge.

“The type of operation they have, along with the private-sector leadership they have, is a model for success that we point others to look at,” Kisber says. “I’ve been very impressed with Gwin Scott and the leadership because they do a good job supporting the companies and entrepreneurs to create and foster a supportive environment.”

Scott says the process of fundraising took a year longer than he originally anticipated, but the support of Wilson and Hyde validates the progress Emerge has made over the last year. Last spring, FedEx Corp. took half of the 15,000-square-foot third floor and relocated its IT innovation group there.

“The Pitt Hydes, Fred Smiths and Kemmons Wilsons are true entrepreneurs who founded their businesses in Memphis and have a true appreciation for what we do,” Scott says. “The model has been working.”

Lauren Young, executive director of the Kemmons Wilson Family Foundation, says the foundation’s support comes from a personal perspective.

“(Kemmons Wilson) had to have people believe in his idea of creating a hotel chain and we want to be able to give a gift to help emerging businesses succeed,” Young says.

Scott says he’ll start recruiting new companies when construction begins, but existing Emerge companies also have the option to relocate to the 15,000-square-foot fourth floor. He anticipates the creation of 60-75 new jobs when the new companies move in.

Kisber says part of Emerge’s success has come through its relationships with Memphis-specific organizations like the FedEx Institute of Technology. Emerge’s mentoring programs, which provide tenants with access to successful business leaders, also have been pivotal.

“They really capitalize on the strengths of the Memphis area and they enjoy the relationships they have,” Kisber says. “Other places can replicate that approach to seize on the strength of their individual regions, but Emerge has some unique opportunities in Memphis.”

Scott says the completion of fundraising will provide new opportunities.

“This is all about inviting other entrepreneurs into our environment,” he says. “We’ve been working on this for a couple of years and I’m glad I can quit talking about funding the fourth floor and talk about other issues.”