Knoxville Puts Startups at the Center of Its Economic Playbook

Hundreds of entrepreneurs, investors, students and business leaders packed Bridgewater Place in West Knoxville on Tuesday for the Innov865 Alliance's 865 Fest. They left with two ideas: entrepreneurship and innovation are economic development, and the better networking question is not what you do but what you are building.

Co-emcees Chris McAdoo and Katelyn Biefeldt set the tone early, and the programming amplified it through the day.

'The most founder-friendly city in America'

Knoxville Mayor Indya Kincannon picked up the theme in her welcome. "We want to build Knoxville into being the most founder-friendly city in America," she said. "Last week, I was at an international climate conference convening in New York City. They were amazed and impressed at what we are doing in the area, and I want you all to know that we are part of something special here today."

Kincannon, who moved to Knoxville from Arizona 25 years ago when her husband took a job at the University of Tennessee, drew laughs describing herself as "the trailing spouse who ended up being mayor." She urged attendees to work the region's connected ecosystem, noting that people she met decades ago are still her partners on community projects today.

Newly elected Knox County Mayor Betsy Henderson, the day's featured speaker, argued that big things do not have to be attracted from out of state. They can be built locally, she said, and businesses in the county are already "creating the culture of what Knox County is and why people want to come here."

Henderson announced a new business liaison position in the mayor's office to help companies navigate growth and government processes. "Government's role is really about getting out of the way, streamlining those processes, getting past those barriers, making sure that we're cutting red tape and making it easier for businesses to not only come here but thrive here," she said.

Quantum ambitions

The economic development case took its most concrete form in "Quantum Momentum," a panel presented by Three Roots Capital and moderated by its founder and CEO, Grady Vanderhoofven. With the launch of the Knoxville Quantum Accelerator, known as K-Quantum, and growing activity around the Maplehurst Innovation District, panelists argued the region can become a national quantum leader.

"The convergence of capabilities in Knoxville and Chattanooga and Oak Ridge create a nationally competitive ecosystem," said Deborah Crawford of the University of Tennessee, Knoxville.

Shaun Gleason of Oak Ridge National Laboratory said ORNL now has about 160 scientists working across quantum computing, networking, sensing and materials. A proposal ORNL is developing with UT and others, he said, would expand quantum networking capacity at the lab and connect it to Knoxville to create a regional quantum network.

Panelists also named the gaps: specialized facilities, workforce development and long-term funding. Ryan Harring of IonQ said the industry needs "translators" who can explain quantum's growth value to executives and sustain that long-term funding pipeline.

The City of Knoxville is working on the foundations. Rebekah Jane "RJ" Justice said the city's role is to lay the groundwork through infrastructure, land-use planning and partnerships with KUB, and "really create the platform for the private capital to show up."

Builders of every kind

The programming made clear that innovation is not limited to hard tech. In a session presented by PYA, former news anchors Abby Ham and Heather Waliga described leaving broadcast journalism to launch We Know People Media, a personality-driven marketing firm they say they built during commercial breaks.

"At the heart of it, we loved connecting with people, and we loved to tell stories. We still get to do that," Waliga said. The agency is eyeing expansion into additional metro areas.

A Visit Knoxville panel moderated by Kim Bumpas featured Joseph Lenn of J.C. Holdway, Laurence Faber of Potchke and Trevor Stockton of RT Lodge. They discussed the realities of restaurant entrepreneurship as Knoxville's dining scene earns national and Michelin-recommended attention — a food culture the panel tied to attracting tourism, innovative talent and locals who stay.

What investors want

In a "Real Talk" session, Maha Krishnamurthy of the UT Research Foundation's UT Ventures angel network and Marty Brown of PYA and Market Square Ventures explained what they look for, what kills deals and what happens after the checks clear.

The two represent different sides of early-stage funding. MSV is a venture capital fund in which limited partners invest through the fund's general partners, who choose the companies. UT Ventures is an angel network of University of Tennessee alumni in which individual members pick the startups they back. A company needs "UT System DNA" in its leadership or intellectual property tied to the university to be considered.

Both investors said founders must show grit, optimism balanced with realism, and trustworthiness. Their advice: do not send unsolicited pitch decks. Build relationships, show up at events like 865 Fest and make sure investors know to look for you. For UT Ventures specifically, reach out to Robyn Geron.

They closed with the math of early-stage investing. Because backing startups carries much higher risk, investors expect higher returns, typically through an acquisition or IPO. For newcomers to investing, they framed it as "philanthropy with an upside."

Proof on the stage

The day ended with 865 Fest and Startup Day alumni, moderated by Tom Rogers of Innovation Crossroads and the Spark Innovation Center, showing how far a pitch on this stage can go.

Anna Douglas discussed SkyNano's acquisition and the importance of community support during federal funding setbacks. John Sorochan detailed his journey from academic research to developing a global FIFA-standard turf testing technology. Hicham Ghossein's Endeavor Composites won Axle Logistics' Traction Award just days after moving into its new 22,000-square-foot advanced manufacturing facility in Louisville.

Looking ahead, alumni predicted more collaboration, more student founders and deeper corporate involvement in Knoxville's startup scene over the next five years. If this year's turnout was any indication, that future is already taking shape — organizers are already counting down to next year's 865 Fest.