DREW’S NEWS
Greetings from Chattanooga,
Growth is happening, both literally and figuratively.
According to new data from UTC’s Center for Regional Economic Research, Chattanooga’s population is booming at twice the national average, with a striking migration pattern showing that nearly half of our new residents are arriving directly from California and other parts of Tennessee. This massive influx of West Coast talent isn't an accident; it is the natural fruit of a community that has engineered a reputation for tech innovation, independence, outdoor recreation and foundational support for builders.
Political leaders can argue over the "why" behind this influx—citing a business-friendly climate or the lack of a state income tax—but I’m more curious about the how. How are we actually welcoming our new neighbors? How are we empowering these incoming innovators and connecting their talent to our existing infrastructure?
Anecdotally, based on conversations I’ve had with a dozen or so transplants, we aren’t doing it well. It takes more than just open borders to build a community; it requires an intentional, synchronized effort to get people plugged into our local ecosystem. We need to extend a hand to our world-class talent that may be sitting behind you at Easy’s Bistro, or the ex-Silicon Valley founder who may also be coaching your 8-year-old’s soccer team.
So, let's open up the floor: If you’re new to town, what are the biggest challenges you’ve faced in meeting new partners, friends and associates? And if you’ve been here a minute, what are you doing to actively support and integrate our new neighbors? I’ve got a few ideas, but I’d like to hear yours.
Best,
Drew
🚀 Connections + Congrats
Chattanooga Population Outpaces the Nation: New data highlights that our population is growing at twice the national average. In this day of remote work, I’m curious if our leadership is able to identify how this influx is impacting our work force.
EPB & UTC Secure the Quantum Workforce: EPB and UTC partnership is focusing on quantum workforce development. Establishing specialized education pipelines to transition quantum technology into real-world business applications is proactive leadership at its finest—anticipating where tech is going and preparing our people to run it.
Stord Raises $250M at $3B Valuation: In massive logistics news, Amazon-fulfillment competitor Stord has raised a $250 million Series F round, valuing the company at $3 billion. As an AI-powered logistics network offering independent brands an alternative to Amazon’s infrastructure, More importantly, local VC Dynamo Ventures was an early Series A investor. This is a big win for Chattanooga and the entire Southeast supply chain grid.
Speaking of early investment, Austin-based Apptronik has been officially named to the 2026 CNBC Disruptor 50 list. Their breakthrough Apollo robot is actively reshaping the future of labor across logistics and manufacturing. Boutique venture capital investment firm SPLY Capital (where Chattanooga’s own Haley Swank has a strong presence) backed this world-class deep tech startup early.
And SPLY also has their hands in next gen grid tech. With news that Northvolt's shuttered Swedish battery facility is being converted into an AI data center advanced materials pioneer Lyten (and SPLY porfolio company) signed a deal to develop a one-gigawatt data center along side their Lithium-Sulfur batteries line. It’s a creative way to “finance” a deal in the AI-data center boom.
Turning Grit into Recovery: Finally, a wonderful feature from Teknovation on the journey of our own Tasia Malakasis and how her personal cancer diagnosis opened a door for Tennessee health-tech startup SOMAVAC. She’s turned her own founder skill sets to fuel and scale a device that dramatically improves recovery for post-surgery patients. We are all sending her the warmest wishes for a smooth, full recovery as she continues to advocate for patients (and startups!).
📈 Connections + Insights
Structuring the Deal: How Seller Notes Work: For founders and operators navigating SBA acquisitions, understanding creative capital structures is critical. A new breakdown illustrates how seller notes can be strategically deployed in SBA deals to bridge valuation gaps, keep skin in the game, and optimize cash flow during a transition.
Introducing an acquisition newsletter for the serious buyer
I’ve started a separate weekly acquisition brief called Letter of Intent, a highly-curated brief at regional and remote cash-flowing SMBs for serious buyers.
💰Connections + Capital
TVFCU Idea Leap Loans and Grants - Applications open again in July 2026 - TVFCU's Idea Leap initiative is distributing $225,000 in grants of up to $30,000 each to qualified small businesses. Eligibility requirements include: 2-25 employees (owner included), maximum annual revenue of $2.5 million, at least 12 months of operational history with proven revenue generation, and location within TVFCU's 17-county service area.
InvestTN Regional Seed Fund - This is a $28M Tennessee-focused initiative investing in startups served by 7 Regional Entrepreneur Centers across all 95 counties. Investments range from $25,000 to $250,000.
Small Business Innovation Research Program - Transform your innovations into market-ready solutions with the SBIR Program. This strategic federal funding initiative empowers small businesses to commercialize cutting-edge research and technology. Whether you're developing next-generation solutions or pioneering scientific breakthroughs, SBIR provides the capital and resources to accelerate your journey from concept to commercialization.
📚 What I’m Reading
I’m a sucker for a good Tennessee success story: The ultimate family business, Forbes chronicles how Bush Brothers & Company transformed a modest 19th-century general store in Chestnut Hill into a privately held bean empire with a family fortune eclipsing $1 billion, all based in East Tennessee. It’s a fascinating story about a business you’ve heard of, but probably know very little about. (Sorry it’s behind a paywall.)
Footnotes
My mission is to cultivate the startup community through connection. I'm a big believer in building this newsletter in public, so if you have ideas on how to further this ecosystem initiative, reply back to this email and let's work on this together.
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We are (slowly) building a database for Chattanooga that will be published soon for free. Have you submitted your startup? Help me build this community resource here.
I'm also building a curated database of businesses for sale. Trying to slog through the noise has been tricky. If you know of a business owner who might be thinking of an exit, let me know. I have a database of pre-vetted buyers ready to buy and scale local businesses.