STEM EDUCATION |ACCESS & INVESTMENT CAPITAL | HIGH-GROWTH ENTREPRENEURSHIP

© 2011 America 21 Project

The Black Innovation and Competitiveness Initiative

The BICI has expanded to become …

Johnathan Holifield Chad Womack, PhD Mike Green

STEMEDUCATION | CAPITALACCESS & INVESTMENT | HIGH-GROWTHENTREPRENEURSHIP

ABOUT The America 21 Project

Co-Founders & Principals

How do we generate wealth in the innovation economy?

“In order to generate wealth in the 21st century innovation economy, we need an equity-based strategy that moves us from solely being consumers of products to becoming the producers of new ideas, innovations and knowledge capital, and the funders of new ventures…”

The America 21 Project: VISION & MISSION

VISION

The America 21 Project seeks to become the leading national voice for innovation and competitiveness empowering communities in urban centers throughout America to achieve full equity participation in the 21st century Innovation Economy.

MISSION

The America21 Project will catalyze and empower underserved communities throughout urban America to fully participate in the 21st century innovation economy through STEM education, and capital formation, access and investment in high growth entrepreneurship.

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The America 21 Project: STRATEGY & APPROACH

STRATEGY Move the narrative (mindset) of Black America to a

21st century framework and action plan based on innovation and competitiveness

Develop and build sustainable 21st century urban innovation ecosystems (hubs and nodes)

Scale and replicate across the country

The America 21 Project APPROACH

The America 21 Project seeks to leverage existing assets within Urban American communities to create new opportunities and ensure competitiveness in the Innovation Economy.

The AMERICA 21 Project – Programs and Initiatives

Spreading awareness, planting resource seeds, nurturing growth

The America 21 Project

National STEM Council Partnership for Urban America

HBCU Innovation (R&D) initiative National Urban Innovation Campaign

Urban Innovation Fund

Urban Innovators Workshop

Innovation Nation

projects

initiatives

BUILDING THE URBAN ECONOMIC ECOSYSTEM

Programs

Revitalizing America’s economic vitality requires strengthening ALL of America’s innovative sectors

Global Innovation & Competitiveness 2011

SwitzerlandSingaporeSwedenFinlandUSAGermany

Netherlands

Denmark

Japan

Britain

1

2

3

4

5

6

7

8

9

10

Sept. 7, 2011 (AP) — The World Economic Forum rankings, which the forum has issued for more than three decades, are based on economic data and a survey of 15,000 business executives across 142 nations.

The forum praised the U.S. for its productivity, highly sophisticated and innovative companies, excellent universities and flexible labor market. But it also cited “a number of escalating weaknesses” such as rising government debt and declining public faith in political leaders and corporate ethics.

#12008

2010 #4

2011 #5

Fall 2008: economic collapse

How do we connect the disconnected?

21st Century 20th Century

STEM education

Angel & Venture Capital

High-Growth Entrepreneurship

Urban Innovation-Ecosystems

The America 21 Project is the bridge connecting urban communities to the 21st century Innovation Economy

The Innovation Entrepreneurial Ecosystem

STEM Education High Growth Entrepreneurship

CapitalAccess/Investment

The Story of America’s Innovation Economy

Exponential job growth No job growth

Entrepreneurial Ecosystem

No Ecosystem

Public-Private risk capital infrastructure

No investment infrastructureWhite America’s median wealth is 20 times Black America’s

21st

century

The America 21 Project INNOVATIVE APPROACHThe America 21 Project will establish a collaborative online-offline platform to develop urban innovation ecosystems that foster solutions-based approaches to meet the challenges of 21st century community and economic development. Wealth creation is a top priority

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STEMEducation

CAPITALAccess / Investment

HIGH-GROWTHEntrepreneurship

Three Pillars/Foundation

Historical Transitions in the U.S. Economy

19th century agrarian economy 20th century manufacturing and service economy

… is knowledge-based … driven by science, technology and innovation.

The 21st century innovation economy

The 19th and 20th century economies were driven by manual labor…

Risk Capital Exponential GrowthTechnology/Social Media-Driven Platforms

Disruptive Ideas

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Got Investment?

STEM EDUCATION

CAPITAL ACCESS& INVESTMENT

HIGH GROWTH ENTREPRENEURSHIP

Raising Capital

A new economic vision for 21st century Urban America

The Role of STEM Education-Workforce in Competitiveness and Wealth Creation?

…and wealth creation in the innovation economy

Source: Report Touch Choices or Tough Times, National Center on Education and the Economy

The life cycle of innovation emerges from of our urban centers yet its benefits elude our cities and their residents due in part to a negative innovation flow. We must harness the cycle so its benefits are no longer lost to our urban communities.

Knowledge & Innovative Economy• Clinical Research & Development• Manufacturing • Marketing & Sales• Global Supply Chain Management

R & D

Suburbs/Exurbs

Service Economy• Low-level service oriented jobs• Manual laborCity/Urban Centers

Technology Transfer

Regional Clusters & Networks

Commercialization & Manufacturing

Negative Innovation Flow

16

HOW DO WE BOLSTER AMERICA’S COMPETITIVENESS?… by educating and preparing Disconnected Americans for the Innovation Economy

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20th Century Service/Manufacturing Economy

21st Century Innovation Economy

Those that are prepared and can compete in the…

Professional or Graduate Degree

4 Year College Degree

High School Degree Only

No High School Degree

High Growth Entrepreneurship

CAPITALAccess / Investment

HIGH-GROWTHEntrepreneurship

STEMEducation

National Average STEM yield ≅ 4%

How is STEM education linked to community and economic development?

How is STEM education linked to community and economic development?

How does Philly stack up against other major cities?The NAEP 2009 TUDA Results

Out of 17 cities analyzed in the Trial Urban District Assessment (TUDA) study, Philly was last in terms of STEM performance (NAEP)

TBED 1.0 the 20th Century Model – Does geography determine economic destiny ?

2008 PSSA Proficiency Rates – Math & Science combined by ZIP code, Grades 3-8, 11

Temple University – TUHS, Einstein Hospital

UPenn/Univ City Science Center, Drexel, USiP – UPHS, CHOP Einstein Hospital

Proposed Innovation Empowerment Zones

Proposed Innovation Empowerment Zones

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Top 5 Schools account for >60% of the SDP (actual) STEM yield

The STEM yield in Philadelphia

The actual STEM yield for African-Americans is <1%

What is the current situation? Where do we want to be?

*The Opportunity Equation, Carnegie Foundation

So… How do we get there?

What is the current situation? Where do we want to be?

*The Opportunity Equation, Carnegie Foundation

So… How do we get there?

All students prepared for college and for 21st century work!!

STEM Vision Statement All youth should be prepared to participate and succeed in a 21st century society as global citizens, and engage STEM education through a holistic process that involves their community and environment.

STEM Framework All youth should be prepared for post-secondary success in college and 21st century work in the

knowledge and innovation/tech-based economy. All youth should be STEM literate as…

science and technology are the tools of STEM and a 21st century society. math is the fundamental language of STEM. the ability to think critically and utilize problem-solving skills in the context of STEM will

enable the next-gen of innovators that will address the challenges of the 21st century.

A 21st Century Vision & Framework for STEM Education

BICI(executive management)

National STEM Council – Executive Board

to provide a vehicle through which the leadership representing all of the Black STEM organizations can convene on an annual basis to discuss best practices and lessons learned as professional associations, initiatives and programs

to discuss the state of STEM in Black America from school to career (an annual report would be a deliverable and outcome), and determine strategies to address the STEM educational crisis facing Black America in the 21st century

to aggregate concerns across the various STEM disciplines to address and affect federal and local policies as they relate to the STEM pipeline

to address the opportunities for Black STEM entrepreneurs providing workshops to encourage, educate and train Black STEM professionals to pursue entrepreneurship and businesses

to aggregate and leverage capital to invest in Black STEM professionals who seek to become tech-entrepreneurs

National STEM Council - Goals

STEM21March, 2011

Philadelphia STEM Innovation Center Bridging the K-12 and Higher Education Divide

Philadelphia STEM Innovation Center – Governance & Management

Executive Director & Staff

Board of Directors (proposed)

The Franklin Institute

TBED21

The Early College STEM AcademyOctober 24, 2011

Philadelphia STEM Innovation Center Chad Womack, PhD

5-10 12-15 20-25

Univ City HSSayre HS

W. Phila HSSchool of the Future

Overbrook HS

W. P

hila

HS

Clus

ter

Development of the STEM Academy Program in one SDP High School

Proposed Development and Expansion of the High School STEM Academy Program

# of students per entering 10th grade class

10/27/11 Early College STEM Academy Program 33

Maximum Output = 25 STEM students per school per year (fully loaded)

YR 1 YR 2 YR 3

= Total Output of 125 STEMready students per school cluster per year(assuming a fully loaded program by year 5)

How do we ensure equity and access while driving systemic transformation in STEM?• Implement the STEM academy model in neighborhood high schools and then expand programmatic reach throughout

high school clusters and regions.

…and then expand throughout SDP regionally

Program and Curriculum for the High School STEM Academy Program

10/27/11 Early College STEM Academy Program 34

Overview of the Early College STEM Academy Program

The Early College STEM Academy Program is a program of the Philadelphia STEM Innovation Center – a STEM education focused collaborative and partnership-driven effort with The School District of Philadelphia, Drexel University, University of Pennsylvania, Philadelphia Biotechnology and Life Sciences Institute, FIRST Robotics and The Franklin Institute.

This is a 4 year longitudinal program that proactively identifies and recruits 9th grade high school students during their Spring semester.

The program will initially be piloted within the W. Phila high schools, and then expanded regionally throughout the School District of Philadelphia

The term STEM refers to science, technology, engineering and math

MS HS 4-yr/B.S. M.S./ MBA PhD/MD/MD-PhD2-yr/A.S.

Bio-Life Science Career Pathways & STEM Scholars Programs

Biotechnician/Research Assistant II

CEO, COO, CSOClinical ScientistsBasic Research Scientists

CFO, CEO, Associate Scientist/ Scientist I

Biotechnician/Research Assistant I

Bioentrepreneurship Programs

STEM Scholars Program

Career Development

High Growth Entrepreneurship

STEMEducation

CAPITALAccess /

Investment HIGH-GROWTHEntrepreneurship

Will create job growth & wealth

Entrepreneur

In any given year, the top-performing 1 percent of new firms generate roughly 40 percent of new job creation.

Kauffman Foundation

1% = 40%

HIGH-GROWTH HIGH-IMPACT ENTREPRENEURS

Startups New Jobs=

gazelles

How do we generate wealth in the innovation economy?Wealth = Equity * Entrepreneurship * Innovation

The Story of America’s Innovation Economy

Exponential job growth No job growth

Entrepreneurial Ecosystem

No Ecosystem

Public-Private risk capital infrastructure

No investment infrastructureWhite America’s median wealth is 20 times Black America’s

21st

century

ANNUAL SPENDING

~$1 TrillionBUSINESS REVENUE

$138B

BLACK AMERICA

Family Income

$30K

Per Capita Biz Revenue

$3,700

BLACK PRODUCTIVITY

Median HHI Business Density Failure Rate

Blacks

Hispanics

Asians

Whites

Household Income

$29,691

$33,961

$53,832

$46,119

36

42

98

94

# firms per thousand persons Business failures over 4 years

39.3%

33.9%

32.9%

29.2%

SBA Report Nov. 2010*: Race/Ethnicity Establishment Dynamics

*Data reporting period 2002 - 2006

Businesses w/ employees Business receipts

Blacks

Hispanics

Asians

Whites

# businesses / population

107,000

249,000

399,000

4.6 million

$99B

$274.5B

$461B

$9.4 trillion

Total annual gross revenuePer Capita

0.003

0.005

0.030

0.020

Per Capita Business Receipts (data for 2007)

U.S. CENSUS 2010 REPORT

3%1.5%

Will work for funding

Entrepreneur Bootstrapping

NEED =

Private Capital

The Angel Capital Education Foundation estimates that about 10,000 accredited investors now belong to more than 265 groups that play a critical role in the deal flow in their communities.

Avg. investment: $191K

ACCESS TO CAPITAL INVESTMENT

High Growth Entrepreneurship

STEMEducation

HIGH-GROWTHEntrepreneurship

CAPITALAccess / Investment

ACCESS TO RISK CAPITAL & INVESTMENTAccess to angel and venture capital investment is crucial to job creation

Challenge:

Opportunity:The America 21 Project will encourage and promote the development and growth of urban angel groups and venture capital institutional investors.

500+ angel groups

500+ venture capital groups

1angel / venture

capital group

AMERICA’S PRODUCTIVITY DISPARITY

Black America remains from U.S. risk capital investment infrastructure.DIS CONNECTED

Black-owned businesses1.9 million

$137B

< 1%

2007: Before economic collapse

Venture-backed businesses4,025

$2.9T

21%

GDP = $14T

2008

Revenue

% of GDP

1.8 million sole proprietors

with no employees

The America 21 Project Platform

ONLINE & OFFLINEA core component of The America 21 Project strategy is to build a unique and propriety

platform that fosters a new narrative and establishes a sustainable innovation ecosystem.

The Innovation Nation platform will:

• Educate Urban America about the challenges and opportunities inherent in the 21st century global innovation economy.

• Identify and establish nodes and hubs within the innovation ecosystem that will amplify the new narrative and provide essential resources to foster access and development within an entrepreneurial ecosystem.

• Significantly enhance deal flow by connecting high growth entrepreneurs to risk capital and angels/institutional investors with opportunities within the innovation economy.

The America 21 Project PLATFORM

Events – Forums, Summits & Symposia

Strategic Partnerships & Resources

Online proprietary ecosystem

Social Media & Networking

Branded online-offline entrepreneurial ecosystem

• Innovation Nation Social Community • Entrepreneur Academy• Deal Flow (Angels & Entrepreneurs)

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Developing 21st century urban innovation ecosystems

Urban innovators are fragmented while surrounded by innovation ecosystems

US Census Bureau, Census 2000

Local NodesRegional Hubs

HBCUs – Nodes and Hubs of Innovation?

Spreading awareness, planting resource seeds, nurturing growthBUILDING THE URBAN ECONOMIC ECOSYSTEM

Convening innovative thought leaders, organizations, educators and investors

Partnership for Urban America

Spreading awareness, planting resource seeds, nurturing growthBUILDING THE URBAN ECONOMIC ECOSYSTEM

NATIONAL URBAN INNOVATION CAMPAIGN

2011-2012

KEY NODES

Urban Angels

Urban Innovators

in each region

BOLSTERING AMERICA’S COMPETITIVENESSHow do we connect Disconnected Americans to the Innovation Economy?

STEM education

R&D investments

Angel & Venture Capital

High-Growth Entrepreneurship

Startup America Partnerships

Entrepreneur – Investor Conferences

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Elem Secondary

HIGHEREducation

WORKFORCE

Entrepreneur Education / Training

Incubators / Accel & Resources

HIGH-GROWTH ENTREPRENEURS

Risk Capital (Angels / Venture Capital)

HIGH-GROWTH ENTREPRENEURS

Since 1980, ALL net new job growth has been produced by companies 5-years-old and younger.

Top performing 1% of young companies produce 40% of job growth EVERY year.

This ecosystem doesn’t exist in the overall

paradigm for Black & Hispanic America

Lifestyle entrepreneurs

No equity investment

Entrepreneurial Ecosystem Kauffman foundation

Target Population

Population of Effective Exponential Leaders

√NT = Ne

√ =The Influencers

Change = Work =

Physics and the Law of Change

+

You

(the ability to move ‘mass’ at a certain rate) Force

DistanceX

Contact Chad Womack, PhD 215-776-6664 http://blackinnovation.org | chad@blackinnovation.org or cwomack06@gmail.com

TEAM

Johnathan Holifield Chad Womack, Ph.D Mike Green

STEMEDUCATION | CAPITALACCESS & INVESTMENT | HIGH-GROWTHENTREPRENEURSHIP

ABOUT The America 21 Project 21