A Valley tech hub’s choosing Merced as its next location. Here’s where it will be

A Valley technology company geared toward making it easier for low income citizens to get a tech-based education has selected Merced as its next business hub.

Bitwise Industries, founded 2013 in Fresno, announced on Tuesday its intent to open a location in downtown Merced at 1635 M St., according to a news release. Officials are eyeing an opening date in early 2021.

“Earlier this year we began our first expansion outside of Fresno, in Bakersfield,” said Channelle Charest, Bitwise’s executive director of growth. “Now, just a few months later, we’re thrilled for Bitwise to become a part of the Merced community and to welcome Merced into the Bitwise family.”

The news is significant because while technology communities and companies are common in Silicon Valley, San Francisco, and Los Angeles, Bitwise will be the first of its kind in the Merced County region.

Bitwise is expected to provide a tech-centered workspace for budding entrepreneurs and startup companies to accompany its education component, called Geekwise Academy.

The academy trains people in coding and other skills highly sought in the job market, the release said. Those graduates are then placed into paid internship programs.

Resources for businesses, startups

Although Charest said the space is expected to initially create five to 10 new local jobs, the resources it will provide to entrepreneurs, startup and inventors are expected to help stir future economic growth.

Charest also noted programming internships that will be produced by Bitwise’s academy. Plus, she said jobs created by future growth are likely to add to Bitwise’s contribution to the community.

Merced was selected as the next site for the company specifically because of its demographics. Bitwise’s goals include “activating human potential” among lower income and underrepresented groups by giving them access to affordable education and business needs.

Charest cited the UC Merced and a large population of first-generation college students as major reasons for the selection of Merced.

“We’re really focused on creating and making space for a very diverse workforce for the tech industry,” Charest said in a phone interview with the Sun-Star. “The Valley has a lot of amazing talent. We really want to shift the conversation about who should be in technology ... who should have a presence there.”

Another big part of the expansion into Merced is the potential partnerships with initiatives and organizations like UC Merced’s Venture Lab and Restore Merced.

Merced County tech startups and established businesses can contract out coding work to Bitwise, once the location is set up. Those companies also can reserve meeting and work spaces at $39 per month or $10 day passes.

Bitwise provides its own software development services through Shift3 Technologies to startups and established businesses.

Teachers and Geekwise Academy representatives also will be available and run the coding classes.

Bitwise received a $27 million investment over the summer, marking it as one of the largest levels of financing a Valley-based tech firm achieved.

The Merced location will initially be a tech hub working space of about 8,000 square feet. But Bitwise officials hope it grows as the business in Merced grows, Charest said.

The total cost of the construction was still being determined Charest said, declining to give an estimate and noting that any historic elements to the current downtown structure would be preserved.

This story was originally published December 17, 2019 at 5:00 AM.