Dunedin-based shared business space company Petridish in Dunedin will announce the winners tomorrow night, having whittled down entries from 26 businesses to six shortlisted.
Petridish co-founder Jason Lindsey said the inaugural three winners will receive respectively $5000, $2000 and $1000 to help them take their next development step or launch.
Businesses and people have been asked to pledge donations towards the Risingtide fund, which would be given out quarterly, likely raising more than $50,000 this year.
Mr Lindsey said a share stake in start-ups was considered, but required a lot of regulatory hurdles, so it was better for the start-ups to have a share in donations.
''If everyone chips in together, we all prosper,'' Mr Lindsey said of support and encouraging development of creating a ''business eco-system'' in Dunedin.
Hamilton-based incubator Soda is also considering creating a $20,000 mentorship programme to run alongside future Risingtide grants, he said.
In the long term, Mr Lindsey is hoping to attract weekly donations. which could collectively contribute more than $500,000 a year. That would mean grants in the future could be for up to $20,000 each.
Petridish had grown to offer space to 55 businesses and about 120 people, and had more space under development in its Stafford St building.
The idea for Risingtide came from successful crowdfunding campaigns in Dunedin, including that of chocolate-maker the Otago Chocolate Company (Ocho), Mr Lindsey said.
