Rochester Area Economic Development

What Rochester Area Economic Development does

Rochester Area Economic Development, Inc. (RAEDI) is a Minnesota nonprofit economic development organization founded in 1985 and headquartered at 221 First Ave SW, Suite 600, Rochester, MN. It assists existing and prospective businesses in the Rochester MSA — including small and medium enterprises, healthcare and life-sciences firms, manufacturers, technology investors, and Southeast Minnesota municipalities — in accessing capital, sites, workforce resources, and regional partners needed to execute growth, relocation, and expansion plans. Its service portfolio is organized around financial packaging, direct investment funding (including administration of the City of Rochester Economic Development Fund), fixed-asset financing, business planning, workforce development, and site-selection support, with an online commercial property-search portal powered by Moody's Analytics.

RAEDI operates the Economic Development Center (EDC) on the sixth floor of the Minnesota BioBusiness Center, co-locating six partner organizations (Collider coworking, SBDC, SCORE, Southeast Minnesota Capital Fund, Minority Owned Business Network, and RAEDI itself). It also coordinates the RAEDI Communities Council, a regional initiative in which member municipalities — including Pine Island, Byron, Stewartville, Chatfield, and Kasson — invest in and collaborate with RAEDI on economic development priorities. Its revenue model is investor-membership driven (80+ businesses, banks, healthcare systems, construction firms, municipalities, and utilities pay annual dues) supplemented by fees for administering the City of Rochester Economic Development Fund on the city's behalf; core business services are provided free of charge.

The organization is institutionally aligned with two large-scale external initiatives that define its strategic posture: the Destination Medical Center (DMC), a 20-year public-private partnership (2015–2035) anchored by Mayo Clinic with a $5.6 billion private investment goal and a target of 35,000–45,000 new jobs; and Project Skyway, a $700M+ initial-phase technology campus in Pine Island developed in partnership with Google and Ryan Companies. RAEDI has eight listed staff members (a President, four internal Directors covering Economic Development, Business Operations, Marketing & Communications, and SBDC Regional Director, plus an SBDC Program Manager and Consultant) and is governed by a Board of Directors drawn from investor member organizations.

Name

Rochester Area Economic Development

Legal name

Rochester Area Economic Development, Inc.

Website

https://raedi.com

Company type

Private

Founded year

1985

Operating status

Operating

Headcount range

11–50 employees

Short description

Rochester Area Economic Development, Inc. is a Minnesota nonprofit founded in 1985 that helps existing and prospective businesses in the Rochester MSA access capital, sites, workforce resources, and regional partners for growth, relocation, and expansion. It administers the City of Rochester Economic Development Fund, operates the co-located Economic Development Center, and aligns with the DMC and Project Skyway initiatives.

Ownership category

akta.pro rank

Product category

Economic Development Services

NAICS

Administration of Urban Planning and Community and Rural Development (925120)

SIC

Services-Management Services (8741), Real Estate Agents & Managers (For Others) (6531)

akta.pro primary industry

Economic Development & Business Licensing (Local) (BPAIACAN)

Keywords

• Economic development services
• Business financing assistance
• Site selection consulting
• Commercial property listings
• Workforce development programs

Headquarters

HQ city

Rochester

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Infrastructure, Technology or R&D, Others

Revenue model

1. Investor Memberships: RAEDI generates revenue through a network of investor businesses and organizations that financially invest in RAEDI's mission. Investors include companies such as Mayo Clinic, banks, construction firms, healthcare organizations, municipalities, and utilities. The investment supports economic development programs that help businesses grow and create jobs.
2. Economic Development Fund Administration: RAEDI administers the City of Rochester Economic Development Fund, providing loans to eligible Rochester businesses. RAEDI reviews business applications, project details, and financing needs for program administration.

Go-to-market motion3 records

Distribution channels5 records

Marketing channels6 records

Core offering

Rochester Area Economic Development, Inc. (RAEDI) is a nonprofit economic development organization that assists existing and potential businesses in the Rochester, Minnesota area by securing the private and public resources needed to execute their growth plans. It provides financial packaging, direct investment funding through the Economic Development Fund, fixed asset financing, business planning, site selection assistance, and workforce development support. RAEDI also operates the Economic Development Center (EDC), the Southeast Minnesota SBDC consulting program, and the Collider coworking space as integrated delivery channels for business assistance.

Product overview

RAEDI (Rochester Area Economic Development, Inc.) is a regional economic development organization, not a traditional software product company. Its core offering is a service portfolio that connects businesses with regional partners, financing guidance, site-selection assistance, and entrepreneurial resources in Rochester and surrounding communities. The main service pillars include Business Funding Programs (Economic Development Fund, SBA 504, SBA loans, state programs), Property Search (commercial real estate via Moody's Analytics), the Economic Development Center (EDC) for workspace and business support, Southeast Minnesota SBDC for free consulting, Collider coworking space, and Workforce Development Programs. Major initiatives include Project Skyway (Google-partnered technology campus in Pine Island) and the Destination Medical Center (DMC) 20-year economic development initiative. RAEDI also offers an online payment portal for loan servicing.

Differentiator

Problem solved

Functional benefit

Brands

• Economic Development Center (EDC): Workspace, partner connections, and business resources hub located on the 6th floor of the Minnesota BioBusiness Center.
• RAEDI Communities Council

Products and services

• Business Funding Programs Access to capital through multiple financing programs for eligible Rochester businesses, including Economic Development Fund (EDF) loans administered on behalf of the City of Rochester, SBA 504 financing referrals, SBA loans, and Minnesota state incentive programs. Includes financial packaging and direct investment funding services for business growth, equipment, facilities, and fixed asset financing.

Quantifiable outcome

• 35,000–45,000 new jobs expected by 2035 through DMC initiative
• +5 more outcomes

Named customers19 records

Segments6 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

16 partnerships are on record, tiered core, flagship, major and minor.

• Destination Medical Center (DMC)coreStrategic or Co-development Partner · 1 January 2015RAEDI collaborates with Mayo Clinic and DMC on business innovation, talent development, and economic growth across the Rochester area. DMC is a 20-year public-private partnership (2015–2035) with a $5.6 billion private investment goal and $585 million in public infrastructure investment, aiming to create 35,000–45,000 new jobs. RAEDI's work in business development, investment attraction, and community economic development is directly aligned with DMC's goals.
• Mayo CliniccoreStrategic or Co-development PartnerMayo Clinic is Rochester's primary economic anchor institution. Mayo describes Bold. Forward. Unbound. in Rochester as a $5 billion investment in its Rochester campus. Mayo Clinic has invested in RAEDI as a board-level investor and RAEDI supports the healthcare ecosystem through business development initiatives.
• Rochester Community and Technical College (RCTC)coreStrategic or Co-development PartnerRCTC is represented on RAEDI's Executive Committee (Vice Chair Michelle Pyfferoen) and provides workforce development and educational programs aligned with regional employer needs. RAEDI supports workforce initiatives that connect businesses with RCTC training programs.
• University of Minnesota Rochester (UMR)coreStrategic or Co-development PartnerUMR is an anchor of the DMC's UMR/Recreation development district. DMC Board backed a $3 million investment to expand UMR laboratory space and support its workforce pipeline. RAEDI connects businesses with UMR's talent and research capabilities.
• Southeast Minnesota Capital FundcoreStrategic or Co-development PartnerRAEDI is an investor in the Southeast Minnesota Capital Fund, which provides access to capital for startups and growing businesses in southeastern Minnesota. RAEDI assisted companies like Minnesota Medical have benefited from this partnership.
• Google (via Project Skyway)flagshipStrategic or Co-development PartnerProject Skyway is a new technology campus in Pine Island, developed in partnership with Google. The initial phase is expected to exceed $700 million in construction capital investment, create approximately 100 permanent operational jobs and 700+ construction jobs, and fund more than $100 million in utility and roadway infrastructure. Google will fund 100% of the costs for its new energy service and infrastructure. Ryan Companies is the developer.
• Ryan CompaniesflagshipStrategic or Co-development PartnerRyan Companies is the developer for Project Skyway in Pine Island. The 482-acre site is being developed as a technology campus with $700M+ initial capital investment.
• City of RochestercoreStrategic or Co-development PartnerCity of Rochester is a major RAEDI investor and partner. RAEDI administers the City of Rochester Economic Development Fund on behalf of the city, providing loans to eligible Rochester businesses. The City of Rochester coordinates with DMC on major downtown investments.
• Olmsted CountycoreStrategic or Co-development PartnerOlmsted County is a RAEDI investor and is a key partner in the DMC public-private partnership. County coordinates on infrastructure, utilities, and regional development initiatives.
• 504 CorporationmajorChannel Partner/ Reseller/ Distributor504 Corporation provides SBA 504 financing for small business real estate, equipment, and expansion projects. RAEDI refers businesses to 504 Corporation and provides information about SBA 504 financing options on its business funding pages.
• Collider CoworkingcoreStrategic or Co-development PartnerCollider is Rochester's premier coworking space and a partner organization in the EDC. Located in the heart of downtown Rochester, it provides workspace, networking, and resources for entrepreneurs and startups.
• SCORE Southeast MinnesotamajorStrategic or Co-development PartnerSCORE Southeast Minnesota connects entrepreneurs with experienced volunteer mentors and free educational resources. SCORE is a partner organization in the EDC, offering startup guidance, workshops, and business mentoring.
• Southeast Minnesota SBDCcoreStrategic or Co-development PartnerSoutheast Minnesota SBDC provides free, confidential business consulting services across the region. SBDC is co-located in the EDC and RAEDI staff (Mark Thein as SBDC Regional Director, Julie Herrera-Lemler as SBDC Regional Program Manager) work within RAEDI.
• Minnesota Department of Employment and Economic Development (DEED)coreStrategic or Co-development PartnerMinnesota DEED provides state business financing, incentive programs, and workforce development resources that RAEDI connects businesses with. RAEDI refers businesses to DEED programs including Job Creation Fund, Minnesota Investment Fund, and workforce training grants.
• U.S. Small Business Administration (SBA)majorChannel Partner/ Reseller/ DistributorRAEDI helps businesses review current SBA loan information and connect with participating lenders. SBA loan programs are one of the key funding options RAEDI references for businesses seeking capital.
• Post Bulletin/Forum CommunicationsminorGTM or Marketing PartnerPost Bulletin is a RAEDI investor and provides ongoing news coverage of economic development in the Rochester area, including RAEDI activities, business expansions, and regional initiatives.

Scale indicators15 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• GREATER MSP (Minneapolis-Saint Paul Regional Economic Development): Regional economic development partnership covering the Minneapolis-St. Paul metro. Comparable to RAEDI as a publicly-funded EDO that markets the metro to relocating/expanding businesses, brokers workforce and incentive connections, and competes for the same category of corporate investment decisions — albeit for a much larger metro than Rochester.
• Greater Des Moines Partnership: Regional EDO serving Greater Des Moines. Like RAEDI, it operates an investor-funded model, runs business attraction/retention programs, and partners with state/local government on incentive packages for incoming employers.
• Indy Chamber (Economic Development Division): Indianapolis regional chamber and EDO delivering site-selection, business-attraction, and workforce-development services. Same institutional model (membership-investor funded, nonprofit) as RAEDI with comparable service pillars.
• Greater Phoenix Economic Council (GPEC): Phoenix metro EDO that competes with RAEDI for relocating and expanding employers (particularly data centers, advanced industries, and life sciences). Comparable in mission and member-funded structure but operates in a much larger market.
• Cincinnati USA Regional Chamber: Cincinnati regional chamber/EDO offering business attraction, retention, minority business development, and workforce services. Functionally analogous to RAEDI's EDC + SBDC + RAEDI service stack in a similarly-sized Midwestern metro.
• Detroit Regional Partnership: Public-private regional EDO for Southeast Michigan that markets the region to corporate site selectors. Operates a comparable investor/membership-funded model and pursues similar large-footprint capital projects (data centers, advanced manufacturing) that RAEDI targets with Project Skyway.
• Greater Cleveland Partnership: Cleveland regional chamber and economic development organization providing site selection, financing program administration, and small business support — closely mirroring RAEDI's integrated service model.
• Tampa Bay Economic Development Council: Regional EDO serving the Tampa Bay area with business attraction, expansion, and incentive-administration services. Comparable in organizational structure, investor model, and service scope to RAEDI for a different regional market.
• San Diego Regional Economic Development Corporation: Regional EDO focused on life sciences, clean tech, and advanced manufacturing — overlapping with RAEDI's healthcare/biotech cluster focus and providing peer benchmarking on member-funded economic development.

Others

• Destination Medical Center (DMC) EDA: RAEDI's close partner and counterpart organization that drives the DMC initiative; although not a direct competitor, DMC operates in the same Rochester economic development ecosystem and is a peer entity RAEDI interfaces with daily.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/raediinfo
• Facebookfacebook.com/Rochester-Area-Economic-Developmen
• LinkedInlinkedin.com/company/rochester-area-economic-development-inc-raedi-

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Rochester Area Economic Development