BUSINESS INCUBATORS AND ACCELERATORS: INNOVATIONS AND TRENDS

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1 BUSINESS INCUBATORS AND ACCELERATORS: INNOVATIONS AND TRENDS TRACK 2 Job Creation Presented: Wednesday, May 13, 2015, 8:30-10:15am 1

2 Introduction: Business Incubators and Trends TRACK 2 Job Creation Importance of incubators Goal is to increase odds of survival Intent is to provide a leg up to start up enterprises by providing: Guidance and Resources Access to Networks Support from Mentors Other professional services Community Benefits Job creation Further investment in community Increased tax revenue 2

3 Introduction: Business Incubators and Trends TRACK 2 Job Creation Purpose of the discussion: Explore policy, regulations and appropriations that support business incubators and accelerators Review financing tools at the federal, state and local level to see how they effectively support the development and operation of incubators Examine projects and best practices around the country to demonstrate how tools and programs can be leveraged in unique and successful ways. 3

4 Presenters: Business Incubators and Accelerators Karl LaPan, President/CEO, Northeast Indiana Innovation Center Julie Kirk, Director, Office of Innovation and Entrepreneurship, EDA Ted Baker, CEO/Executive Director, Muncie Innovation Connector, Inc. T. Devon Laney, President & CEO, Innovation Depot, Inc. Libbie Au, NDC - Moderator TRACK 2 Job Creation 4

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19 The Quest for Sustainable Regional Prosperity United States Department of Commerce Julie Lenzer Kirk Director, Office of Innovation and Entrepreneurship 19

20 START WITH THE END IN MIND Why do we do what we do? Increase U.S. global economic competitiveness Help communities become: Resilient Agile Economically stable Improved quality of life

21 HOW DO WE DO IT?. Creating the conditions for economic growth. Regional approach address unique needs Invest in the ecosystem builders Focus on capacity building Preference for public / private partnerships Looking for catalytic investments

22 WHAT DO WE DO?. Investments, Tools, and Connections Regional and national grant programs Public works authorization focused on distressed communities America COMPETES funding removes distressed requirement Leverage data into information Identify and share best practices Programs across the continuum dependent on community stage

23 HIERARCHY OF NEEDS Transportation Utilities Basic Infrastructure

24 HIERARCHY OF NEEDS Transportation Utilities Technology Infrastructure Broadband Cellular Wireless Basic Infrastructure

25 HIERARCHY OF NEEDS Incubators Accelerators Policies Capital Transportation Utilities Business Support Technology Infrastructure Basic Infrastructure Broadband Cellular Wireless

26 HIERARCHY OF NEEDS Incubators Accelerators Policies Capital Transportation Utilities Engines of Innovation Business Support Technology Infrastructure Basic Infrastructure Universities / R&D Commercialization Capital Policies Broadband Cellular Wireless

27 HIERARCHY OF NEEDS Incubators Accelerators Policies Capital Transportation Utilities Connected Ecosystem Engines of Innovation Business Support Technology Infrastructure Basic Infrastructure Universities / R&D Commercialization Capital Policies Broadband Cellular Wireless

28 HIERARCHY OF NEEDS Incubators Accelerators Policies Capital Transportation Utilities Connected Ecosystem People & Culture Engines of Innovation People & Culture Business Support People & Culture Technology Infrastructure People & Culture Basic Infrastructure People & Culture Universities / R&D Commercialization Capital Policies Broadband Cellular Wireless

29 SMALL OFFICE, BIG IMPACT Office of Innovation and Entrepreneurship (OIE) Focus: high-growth entrepreneurship and accelerating commercialization Cross-agency collaborator Policy and programs Regional Innovation Strategies (i6) NACIE

30 REGIONAL INNOVATION STRATEGIES $100M 241 i6 Challenge (124) Science & Research Parks (70) Cluster Grants for Seed Capital Funds (47)

31 2014 RIS AWARDS i6 Challenge (17) Cluster Grants for Seed Capital Funds (9)

32 NACIE

33 OIE GOALS FOR 2015 National convening of eco-system builders Expand conversation about economic development to include innovation and entrepreneurship Data collection and metrics Eco-system and culture focus Additional focus on rural initiatives Sustainability of the office

34 THE BOTTOM LINE Realized potential. Economic resilience. Improved quality of life.

35 THANK YOU! Julie Lenzer Kirk Director, Office of Innovation and Entrepreneurship U.S. Department of Commerce Economic Development Administration

36 Impact From A Smaller View TED A. BAKER

37 Muncie, IN in the heart of Indiana where Everyone is Welcome CEO/Executive Director Muncie Innovation Connector, Inc. and the Downtown Business Connector Technology Incubator 33 client businesses & support organizations Co-working Space in the historical Downtown Muncie (Started Jan. 1, 2015 Currently 25 members) The Gateway for Entrepreneurship Greetings

38 home base PLACE

39 downtown PLACE

40 OUR SECRET SAUCE o Focus on the culture of the community Not try to be someone else o Collaborations, Connections, Cooperation = Strategic Partnerships o Be the Place o Getting credit for what we do is over-rated; Giving credit is under-rated! o Be INNOVATIVE & CREATIVE

41 OUR PROOF IS IN THE PUDDING - Progress o Started with 2-3 clients in August 2010 now at 100% capacity o Opened 2 nd (Different Concept) Facility in Downtown Muncie January 2015 o Five graduates from program in past three years more to come! o Increased client-generated revenue nearly 200% in 4 years o Now recognized as a community go-to resource

42 OUR PROOF IS IN THE PUDDING - Stats o Certified Tech Park (2014) o 581 full time employees o Gross Payroll: $36,130,515 ($62,188 per employee) o Gross Revenue: $81,050,576 o Capital Investments Reported: $4,050,000 Innovation Connector (Incubator Specific) o 73 full time employees o Gross Payroll: $3,121,641 ($42,762 per employee) o Gross Revenue: $15,557,135

43 OUR PROOF IS IN THE PUDDING Funding o Client Generated Revenue o Program Generated Revenue o Special Events o Indiana Certified Technology Park Funds o Local, Regional & National Foundations o University & College Support o EDA & SBA Opportunities

44 CHALLENGES o Financial Sustainability for incubators o We are seen as a high end non-profit organization not much apathy for us o Opportunities far outreach our capacities o Limited access of capital for our startups and clients

45 CHANGES o Continual need for Innovation always being the next thing o Business assistance services are now a commodity in the marketplace (free) o Funders want value driven ROIs o The need for bootstrapping o The need for partnerships

46 CONTACT Ted Baker CEO/Executive Director Muncie Innovation Connector, Inc West White River Blvd Muncie, IN (765)

47 TRACK 2 Job Creation Questions? 47

48 ROOM ASSIGNMENTS 10:30-12:15PM WEDNESDAY, MAY 13 TRACK SESSION ROOM Creative Financing After Boardwalk: Structuring Historic Tax Credits West End C Job Creation Social Impact Bonds Georgetown Housing Development Community Development LIHTCs: Navigating the Times Quarterbacks for Community Development West End A+B DuPont

49 ROOM ASSIGNMENTS WEDNESDAY AFTERNOON MAY 12 TRACK SESSION ROOM Job Creation 1:30-4:30PM Housing Devo. 1:30-4:30PM All Business Development: Finance and Job Creation Programs Housing Development Finance Programs Capitol Hill Primer 12:30-1:15PM Georgetown DuPont West End A+B

50 ROOM ASSIGNMENTS 5:30-7:00PM TUESDAY, MAY 12 SESSION CAPITOL HILL RECEPTION ROOM Kennedy Caucus Room Russell Senate Office Building

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