The tech start-up must locate its headquarters in the county or repay $100,000 from funding that’s helped other local companies
PRINCE WILLIAM COUNTY — Prince William County officials recently gave education software company Scriyb, LLC, an additional 15 months to relocate its headquarters within the county or face the prospect of repaying its $100,000 economic development grant.
Scriyb is one of at least five companies that have received $400,000 in county funds since 2016 aimed at generating economic development, but it’s the only one facing the prospect of repaying its grant. The company so far has been unable to find a suitable location for its operations.
As part of its grant, Scriyb also received matching funds from the state’s Center for Innovative Technology GAP Funds. The tech start-up, founded in 2015, is headed by Chief Executive Officer Christopher Etesse, who previously worked with several other educational technology companies.
The Board of County Supervisors voted during its June 26 meeting to extend the deadline for Scriyb to meet the terms of its agreement from Dec. 31, 2017, to March 29, 2019 — more than a year of extra time.
Supervisors, who had deferred the vote from a previous meeting, discussed it during closed session. When they returned to public session, they voted without comment to approve the extension. Chairman Corey Stewart, R-At Large, was absent for the vote, and Supervisor Pete Candland (Gainesville) abstained.
Scriyb is one of at least five companies that have received taxpayer-funded grants from the Prince William County Economic Development Opportunity Fund (EDOF). The grants are designed to help attract and retain targeted industries. They’re recommended by the Department of Economic Development, which oversees them, but must be approved by the Board of Supervisors.
The money can be used for such things as infrastructure improvements, site preparation, workforce services and capital equipment purchases. Recipients are required to sign a “memorandum of understanding” with the county, and they must provide a financial match.
Other EDOF grants have been awarded to:
- The United States Tennis Association Mid-Atlantic Section, which received $100,000 in February toward building a new headquarters and tennis facility at Innovation Park, a 1,500-acre corporate park situated around George Mason University’s Prince William campus. Officials said the planned $15 million tennis facility, which is expected to be complete by 2023, would ultimately employ more than 40 people and attract thousands of annual visitors. The county Department of Parks and Recreation estimates it will contribute $12.1 million annually in economic impact.
- Dulles Glass and Mirror, which received $100,000 in January 2017 toward the cost of moving its corporate headquarters and other operations to the county, bringing 96 existing employees and pledging to create 40 new jobs with a $7.5 million investment.
- Caerus Discovery, LLC, which received $50,000 in February 2017 to work with George Mason University on Zika virus research. The biotechnology company located in Innovation Park agreed to invest $200,000.
- Ceres Nanosciences, which received $50,000 to assist in the expansion of its facilities in Innovation Park. The biotechnology company, which focuses on improving diagnostic testing, has expanded rapidly since its beginning in 2008, including garnering funding from the Bill and Melinda Gates Foundation.
Scriyb received its funding in December 2016 when the Board of Supervisors okayed a performance agreement between the fledgling company and the county’s Industrial Development Authority.
The software company aims to pioneer a cloud-based, live-streaming teaching platform that allows students to access lectures on any internet-connected device. It allows one instructor to teach multiple classrooms. Students can engage with classmates and instructors through chat groups, and the software facilitates peer-to-peer learning. Lectures are archived, so course content is always available to users.
Scriyb is based at GMU’s Virginia Serious Game Institute. Under terms of its agreement with the county, the company was required to maintain five full-time staff positions and relocate to commercial space within the county, while adding 13 full-time employees and $25,000 in equipment, by the end of December 2017.
In a letter to board members outlining the company’s situation, Jeffrey Kaczmarek, executive director of the Department of Economic Development, said Scriyb closed $278,000 in sales in 2017. The company has another 83 deals in the pipeline, worth about $4.8 million in sales. It currently has about 16 employees.
According to the resolution approved by the Board of Supervisors, Scriyb has purchased $16,000 in computer equipment plus cloud computing services, which meet the total required by the agreement. It also has committed to purchasing another $9,000 in computer equipment before the extension deadline of March 29, 2019.
If the company has not relocated to commercial space by the new deadline, it must repay the full $100,000 grant. If the company relocates outside of Prince William County, it will have to repay a portion of the grant, depending on when the relocation occurs.
Kaczmarek explained that Scriyb has been unable to find “suitable space in the immediate vicinity” of its current location near GMU’s Prince William campus.
The county is working with a private developer to create workspace adjacent to the GMU campus for “graduates” of the Virginia Serious Game Institute, such as Scriyb, and other tech companies, Kaczmarek said. That space is expected to be ready in early 2019.
