TECHudson, a 2-year-old business incubator that sought to nurture new entrepreneurs and create high-tech jobs for the future, will close its doors at the end of the year.
Its board of directors voted to dissolve the nonprofit, effective Dec. 31, Executive Director George Buzzy announced Friday.
The Hudson-based group has struggled to raise funds for its mission, and warned officials earlier this year that without a new revenue source, its days were numbered.
“We needed about $150,000 per year to continue to operate,” Buzzy said. “It became clear early on that the original model of a stand-alone entrepreneurial center without alliances with an academic institution would make it difficult to raise operating funds from outside organizations.
“We had very good discussions with Kent State University and other incubators, but in the end, the slowed economy made these organizations unable to commit to TECHudson,” he said.
Hudson City Council, though conflicted about its role in such an endeavor, agreed to foot most of TECHudson’s start-up costs, granting it $174,000 in 2011, $200,000 in 2012 and $50,000 this year.
Throughout the process, council members told incubator leadership to find another source. While the incubator was able to generate some additional funding, it was not enough.
To date, the incubator has helped four startup companies.
Charles Wiedie, Hudson Economic Development Director, said, “We know that all the TECHudson leadership, including its board of directors, put tremendous effort into trying to make the organization self-sustaining.”
“Hudson continues to believe in the value of entrepreneurialism and what that means to our city’s future. There are still many resources available ... ” he said, noting the local Burton D. Morgan Center for Entrepreneurial Research and regional groups such as JumpStart.
Paula Schleis can be reached at 330-996-3741.