Founded in 2006, Plug and Play is an accelerator program with more than 60 locations worldwide. Ranked the world’s most active investor by Pitchbook, Plug and Play accelerated more than 2,700 startups in 2023. The company has more than 550 corporate partners including Walmart, ExxonMobil, Shell, AstraZeneca, and more. Plug and Play have also worked with other EDCs in Texas including Cedar Park, McKinney, and Frisco.
Plug and Play is looking to locate to Sugar Land Town Square. Below are Plug and Play’s commitments:
- Plug and Play will lease space within the City limits.
- Plug and Play will not launch an accelerator program within 60 miles of the City, ensuring Sugar Land is the flagship Houston location.
- The City will receive a spot on the Advisory Committee.
- Plug and Play will accelerate 2 batches of startups per year.
- Plug and Play will produce batch reports at the end of each batch.
- Plug and Play will employ 4 full-time employees in Sugar Land.
- Grant access the proprietary “Playbook” Database;
- Events:
- Selection Day(s)
- Expos
- 2 Community events per quarter
- Mentorship Sessions
- Internal Events
Economic Development Staff recommends a 3-year agreement with Plug and Play in the amount of $4,500,000.00 distributed over the 3 years.
In the Strategic Outcome Areas defined by City Council, staff is charged with “attracting and incubating the growth of new innovators and entrepreneurs” in the City. This partnership with Plug and Play helps staff achieve this to achieve this outcome as well as strengthening our business attraction efforts.
It is important to note that incentives provided by the Sugar Land Development Corporation (SLDC), a special economic development corporation approved by Sugar Land voters in 1993 and funded by a voter-approved .25 cent sales tax, are for the promotion and development of new and expanded business enterprises. This includes the recruitment and retention of primary employment, and incentives are strictly performance-based. The company will not receive the full annual benefit unless it fully meets all obligations and requirements. The estimated total direct and indirect benefits of any project receiving an incentive from SLDC must exceed the total direct incentives offered.
If approved and subject to Plug and Play meeting all terms of the 3-year Performance Agreement, the first of nine payments will be issued by January 1, 2025, with eight succeeding economic incentive payments. There are guided measures and requirements that Plug and Play must meet to receive payment.
The Economic Development Committee and City Council has reviewed the proposed Performance Agreement terms. Staff recommends approval of the Performance Agreement between the Sugar Land Development Corporation and Plug and Play.