In a room full of academics, student entrepreneurs, and the Mayor of San Francisco, the Third Coast Foundry officially opened its doors.
The Foundry is launching as a two-year pilot program managed by the University of Chicago’s Polsky Center for Innovation and Entrepreneurship.
University of Chicago President Paul Alivisatos says the space will help accelerate growth for Midwestern startups:
"Primarily it’s a place for our founders to network with founders from other places. But also with people who can help to capitalize their companies, that’s the primary motivation," Alivisatos said.
According to the Polsky Center, it can be a lot harder for Midwestern startups to secure initial funding. On average, it can take 18 months longer to raise their first $500,000 compared to coastal startups.
They say being in San Francisco will give them easier access to a deep-well of funds. They estimate there's around $100 billion in potential funding sources just in the immediate area.
Collectively, the Foundry says it is giving the Bay access to networks of over 300,000 students and over $10 million in annual research investments among its partner universities.
But for everyday San Franciscans, more venture capital and tech may be coming at an inconvenient time. According to a report from Zumper, rents in San Francisco are up 22% amid the AI boom.
KALW asked Mayor Lurie about what San Franciscans should expect from the Foundry as they navigate an increasingly expensive city.
"Our focus in my administration is making sure that we make a more affordable city," Lurie said.
Last month the rental price for a one-bedroom apartment crossed $4,000 for the first time in San Francisco history. Evictions are also at an all-time high.
"But we have a long way to go," Lurie continued. "This city is deeply unaffordable, and that's why we have to build more affordable housing."
In May, the Lurie Administration approved a $70 million bond to be used in 2027 to preserve affordable housing in the city. At the same time, Supervisor Myrna Melgar along with Mayor Lurie passed legislation promising that the City would dedicate $125 million annually to build and preserve affordable housing.
The Third Coast Foundry's eight partner institutions include Carnegie Mellon, Northwestern, Ohio State, Purdue, Washington University and the Universities of Chicago, Illinois and Wisconsin.
It is located at 625 2nd Street in the South Beach neighborhood.
