accelerators, incubators & co-working by greg bullock
TRANSCRIPT
TODAY WE’RE TALKING ABOUT THOSE…
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INCUBATORS
ACCELERATORS
COWORKING
NATE CURRANENTREPRENEUR-IN-RESIDENCE
@NATECURRANAZ
GREG BULLOCKMARKETING SPECIALIST
@AZBULLOCK
THE CENTER FOR ENTREPRENEURIAL INNOVATION (CEI) IS A BUSINESS INCUBATOR THAT SUPPORTS TECH-BASED COMPANIES IN THE BIOSCIENCE, MEDICAL DEVICE, CLEANTECH AND SOFTWARE-AS-A-SERVICE INDUSTRIES AND AT ANY STAGE OF DEVELOPMENT. ITS MISSION IS TO SUPPORT INNOVATIVE ENTREPRENEURS WHO ARE SCALING COMPANIES THAT CREATE QUALITY JOBS FOR THE GREATER PHOENIX REGION.
STRATEGIC GROWTH PLANNINGAND INDUSTRY-SPECIFIC MENTOR ASSISTANCE
WET LAB & OFFICE SPACEFURNISHED, AFFORDABLE AND FLEXIBLE
DISCOUNTED PROTOTYPINGONSITE 3D PRINTING AND DESIGN SERVICES
COMPETITIVE INTELLIGENCESOPHISTICATED MARKET & COMPETITOR RESEARCH
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WWW.CEIGATEWAY.COM
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INNOVATIONTHROUGH INCUBATION
COURTNEY KLEIN | SEED SPOT(PHOTO COURTESY OF AZCENTRAL.COM)
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MOST NON-PROFIT AND ECONOMIC DEVELOPMENT FOCUSED
NETWORK OF INVESTORS
AND OTHER SERVICE PROVIDERS
LONGER GESTATION CYCLE (ONE TO FIVE YEARS)
SERVICE-BASED WITH FACILITIES AND OTHER AMENITIES
SPECIFIC INDUSTRY FOCUS (TECH, SOCIAL,
ETC)
GRADUATE OR FAIL(CRITERIA-BASED EXIT)
WHAT MAKES A BUSINESS INCUBATOR?
INCUBATORS
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OUTDATED AND/OR INCONCLUSIVE RESULTS ABOUT THE OVERALL SUCCESS RATE OF INCUBATOR CLIENTS
DIFFERENT FACTORS IMPACT BUSINESS SURVIVAL (TEAM, MARKET, ETC.)
MOST STUDIES INDICATE THAT MEMBERS HAVE IMPROVED ODDS AT FUNDING
SOME PROGRAMS PROVIDE MEANINGFUL SUPPORT; OTHERS ARE “GLORIFIED OFFICE SPACE”
NUMEROUS RECENT SUCCESS STORIES LOCALLY (PAPER CLOUDS APPAREL, VISIONGATE, GLOVE TREAT)
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ADVANCEMENTTHROUGH ACCELERATION
WILEY LARSEN | ARIZONA STATE UNIVERSITY
(PHOTO COURTESY OF YSCOUTS.COM)
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MANY PRIVATELY FUNDED WITH GOAL OF RAPID SCALE UP
COMMONLY ASSOCIATED WITH SOFTWARE COMPANIES
SHORTER, FINITETERM BASED AROUND COHORTS
TYPICALLY OFFER DIRECT FUNDING FOR COMPANY EQUITY
DEMO DAY OFTEN SIGNALS COMPLETION OF THE
PROGRAM
WHAT MAKES A BUSINESS
ACCELERATOR?
ACCLERATORS
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RECENT PHENOMENON (2005) DOMINATED BY BIG PLAYERS, E.G. Y COMBINATOR, TECHSTARS
EARLY ESTIMATES ARE CONSERVATIVE AND SHOW PROMISING RESULTS; LACK OF COMPREHENSIVE DATA
HIGH GROWTH FUNDING (SERIES A) LINKED TO MEMBERSHIP IN ACCELERATOR PROGRAMS
IS IT JUST A PSEUDONYM FOR STARTUP INVESTMENT PARTNER?
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JENNY POON & ODEEN DOMINGO | CO+HOOTS(PHOTO VIA THE SOCIAL BOOTH / CO+HOOTS)
CONNECTIONTHROUGH COWORKING
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LESS STRUCTURE AND FOCUS ON BUSINESS DEVELOPMENT
MOST OFFER DESK SPACE AND OTHER OFFICE AMENITIES
MIXED MEMBER BASE ACROSS DIFFERENT INDUSTRIES
UNIQUE PURPOSE (COLLABORATION VS. TRANSITION)
UNOFFICIAL COWORKING SPACES ARE BECOMING ALL THE
RAGE
WHAT MAKES A COWORKING
SPACE?
COWORKING
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FREELANCERS, SOLOPRENEURS HAVE FUELED THE COWORKING MOVEMENT
HIGH PERCENTAGE ARE HAPPY WITH THEIR COWORKING SPACE AND IN THEIR LIFE
TRANSITIONAL, POP-IN SPACES ARE A GROWING NICHE WITHIN THE COMMUNITY
STUDIES SHOW THAT GREATER PRODUCTIVITY IS REPORTED AMONG MEMBERS
ARIZONA ON THE MAP FOR COWORKING AND CONTINUES TO BREED NEW SPACES
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WHERE IT ALL GETS
COMPLICATED
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CORPORATIONS,
ACADEMIC INSTITUTIONS
“SUPER” INCUBATOR
S
EXECUTIVE MENTOR
PROGRAMS
STARTUP COMPETITION
S
+ + +
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=
INCONSISTENT
MESSAGE
RESOURCE
CONFUSION
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ONE UNDENIABLE
TRUTH
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EVERY STARTUP EXPERIENCE ISUNIQUEFAR FROM PERFECT, IN NEED OF INTERNAL AND EXTERNAL RESOURCES THROUGHOUT ITS LIFECYCLE AND RELIANT ON NUMEROUS FACTORS FOR ITS ULTIMATE SUCCESS. IT IS UP TO YOU AND YOUR TEAM TO DETERMINE WHAT MAKES SENSE FOR YOUR BUSINESS AT A PARTICULAR TIME.
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YOU SHOULD CONSIDER THEY MIGHT EVALUATE COWORKING CRITERIA
RESOURCE ALIGNMENT
RECORD OF SUCCESS
COST AND/OR EQUITY
POST GRADUATION OR COMPLETION
ONGOING REQUIREMENTS
CULTURE FIT
COACHABILITY
SCALABLE IDEA OR BUSINESS MODEL
ECONOMIC IMPACT
TEAM
LOCATION &“CURB” APPEAL
COST
AMENITIES
HOURS OF OPERATION
CAPABILITIES FOR GROWTH
CULTURE & NETWORKING
SELECTION PROCESS
BECOME FAMILIAR WITH ALL THE
RESOURCES AND AMENITIES
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TIPS FOR ENGAGEMENT
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BE ONSITE AND EXPERIENCE
HALLWAY “MAGIC”
UTILIZE MENTORS & ADVISORS
PROACTIVELY
“KNOW THY NEIGHBOR:” NETWORK &
INTERACT
LEVERAGE THEIR MARKETING
REACH & COLLABORATIVE
SPACE
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TIPS FOR ENGAGEMENT
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ATTEND WORKSHOPS AND
SEMINARS
ACCESS ALUMNI NETWORK AND
POST-GRADUATE RESOURCES
REQUEST VALUABLE
INTRODUCTIONS THAT WILL BENEFIT
YOUR BUSINESS
NEVER MISS A MOMENT TO
PRACTICE TELLING YOUR STORY
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STARTUP TIMELINE
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OTHER QUESTIONS
HOW DO I KNOW IF I’M READY?IF YOU KNOW YOU NEED HELP AND ARE COMFORTABLE ASKING FOR IT, YOU ARE READY.IF YOUR BUSINESS IS AT ANY STAGE BUT ESPECIALLY AT A CRITICAL POINT IN ITS LIFECYCLE, YOU ARE READY.IF YOUR GARAGE IS NO LONGER A VIABLE BUSINESS ADDRESS OR MEETING SPACE, YOU ARE READY.IF YOU ARE IN NEED OF FUNDING AND YOU ARE WILLING TO BE PATIENT AND COACHABLE, YOU ARE READY.IF YOU HAVE NO IDEA WHAT THE HELL YOU ARE DOING, YOU ARE READY.
HOW MUCH WILL IT COST?IT DEPENDS. SOME CHARGE A MONTHLY RENT FOR SPACE & MEMBERSHIP; OTHERS CHARGE A PROGRAM FEE. SOME OF THESE CAN BE AT A PREMIUM AND OTHERS MAY BE AT OR BELOW-MARKET BASED ON SUBSIDIES FROM GOVERNMENT OR OTHER PUBLIC AGENCIES. SOME ARE SOLELY FOCUSED ON EXCHANGING FUNDING FOR COMPANY EQUITY.
MANY PROGRAMS ALSO PROVIDE BASELINE SERVICES AND OFFER OTHER PAY-FOR-SERVICE RESOURCES TO ITS CLIENTS, WHICH MAY OR MAY NOT BE DISCOUNTED. THESE ONGOING COSTS CAN VARY.
LASTLY, SOME ENTITIES HAVE POST-GRADUATE COSTS, E.G. SUCCESS FEES (AGREEMENT TO DONATE OR GIFT FINANCIAL COMPENSATION AFTER ACHIEVING CERTAIN MILESTONES) AND WARRANTS (PERCENTAGE OF GAIN REALIZED AFTER SUCCESSFUL EXIT)
WHAT IF I CANNOT AFFORD IT?MANY PROGRAMS HAVE FLEXIBLE PAYMENT OPTIONS AND THERE ARE GRANT / AWARD OPPORTUNITIES THAT COULD SUBSIDIZE A PORTION OF THE FEE. NUMEROUS FREE RESOURCES, SUCH AS THE SMALL BUSINESS DEVELOPMENT CENTER (SBDC) NETWORK AND SCORE ARE AVAILABLE AS WELL.
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OTHER QUESTIONS
DO I NEED TO WORRY ABOUT PROTECTING MY INTELLECTUAL PROPERTY?THE MAJORITY OF INCUBATORS AND ACCELERATORS HAVE SPECIFIC GUIDELINES AND SERVICES REGARDING INTELLECTUAL PROPERTY – STAFF NDA FORMS, MENTORSHIP AGREEMENTS, IP AUDITS AND STRATEGIES, ETC. ACADEMIC INSTITUTIONS AND CORPORATE PROGRAMS ALSO HAVE RULES FOR TECHNOLOGY TRANSFER TO DETERMINE THE MANNER IN WHICH A STARTUP CAN PURSUE THE COMMERCIALIZATION OF ITS INNOVATION. COWORKING SPACES DO NOT TYPICALLY OFFER SPECIAL GUIDELINES FOR IP.
IN ADDITION, COMPANIES THAT PREFER TO OPERATE WITH A LOW-PROFILE CAN REQUEST IT NOT BE CITED IN MARKETING OR OTHER INITIATIVES. HOWEVER, MOST PROGRAMS WILL INCLUDE AGGREGATE IMPACT (JOB, REVENUE, INVESTMENT) DATA FOR ALL OF ITS CLIENTS.
HOW CAN I PREPARE MY COMPANY TO BE SELECTED?BE OPEN AND HONEST ABOUT YOUR STRENGTHS, NEEDS, AND CHALLENGES AS A COMPANY AND HOW YOU FEEL YOUR BUSINESS WILL BENEFIT FROM ITS RESOURCES. FOLLOW THROUGH ON DELIVERABLES AND TASKS. INCUBATORS AND ACCELERATORS OFTEN REQUIRE A PITCH PRESENTATION OR INTERVIEW, SO INVEST THE TIME TO PREPARE FOR IT.
IS THERE A NEGATIVE PERCEPTION TO ENROLLING?YES AND NO. SOME FUNDING GROUPS LOOK TO BUSINESS INCUBATORS AND ACCELERATORS AS A FORM OF DUE DILIGENCE FOR WELL-VETTED COMPANIES; OTHER OUTSIDE ENTITIES MAY DOWNGRADE A COMPANY BECAUSE IT IS PERCEIVED AS SHOWING WEAKNESSES OR GAPS, PARTICULARLY IN LEADERSHIP.
DO PROGRAMS HAVE AN MINIMUM AGE REQUIREMENT?NOT REALLY. PROGRAMS LOOK MORE AT BUSINESS SPECIFICS AND OVERALL LEADERSHIP AND EXECUTION ABILITIES WITHIN THE TEAM, WHICH MAY OR MAY NOT BE A FUNCTION OF AGE. ADDITIONALLY, MANY OFFER YOUTH-BASED (MIDDLE SCHOOL, HIGH SCHOOL, COLLEGE) PROGRAMS DESIGNED FOR YOUNGER DEMOGRAPHICS.
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OTHER QUESTIONS
HOW MANY EXIST IN ARIZONA?THERE ARE 15+ ENTITIES THAT RUN INCUBATOR AND/OR ACCELERATOR PROGRAMS, WITH AS MANY AS 34 CITED BY THE ACA. FOR INSTANCE, NACET (BASED IN FLAGSTAFF) MANAGES THREE INCUBATORS (NACET, CHANDLER INNOVATIONS, MARICOPA CENTER FOR ENTREPRENEURSHIP) AND AN ACCELERATOR IN NORTHERN ARIZONA.
COWORKING DATA IS HARDER TO ESTABLISH, BUT THERE ARE AT LEAST 15 SELF-DESCRIBED “COWORKING” SPACES ACROSS THE STATE AND NUMEROUS UNOFFICIAL HANGOUTS FOR ENTREPRENEURS; ACA LISTS AT LEAST 40 IN ARIZONA. SEVERAL, SUCH AS CO+HOOTS AND GANGPLANK, OFFER MULTIPLE LOCATIONS.
DO YOU ALL GET ALONG WITH EACH OTHER?NO COMMENT… JUST KIDDING
PHOENIX IS SELF-PROCLAIMED THE MOST “GENEROUS” ECOSYSTEM, AND WE ALL RECOGNIZE THE UNIQUE VALUE AND DIFFERENTIATORS OF ONE ANOTHER. A RICHER EXPERIENCE FOR THE ENTREPRENEUR IS GOING TO BENEFIT THAT COMPANY IN THE LONG RUN.
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ARIZONA INCUBATOR RESOURCES
DOWNLOAD THE PRESENTATION
MORE RESOURCES
INFO.CEIGATEWAY.COM/PHXSW2016
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THANK YOU
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REACH OUTWITH YOUR QUESTIONS
[email protected]@CEIGATEWAY.COM
WWW.CEIGATEWAY.COM
@CEIGATEWAY
275 N. GATEWAY DRIVEPHOENIX, ARIZONA 85034
602.286.8950
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SOURCES
HTTP://BOSS.BLOGS.NYTIMES.COM/2013/08/12/ASSESSING-THE-IMPACT-OF-BUSINESS-INCUBATORS/
HTTPS://WWW.MAXWELL.SYR.EDU/UPLOADEDFILES/NEWS/BOONORBOONDOGGLE.PDF
HTTPS://WWW.LINKEDIN.COM/PULSE/BUSINESS-INCUBATOR-RENAISSANCE-NOW-KIRSTIE-CHADWICK
HTTP://WWW.SLIDESHARE.NET/VRYZHONKOV/THE-STARTUP-FACTORIES-THE-RISE-OF-ACCELERATOR-PROGRAMS
HTTP://TECHCRUNCH.COM/2012/11/27/ECONOMIC-IMPACT-OF-STARTUP-ACCELERATORS-1-6B-RAISED-4800-JOBS-CREATED-2000-STARTUPS-FUNDED/
HTTP://WWW.HUFFINGTONPOST.COM/JEFF-FERMIN/11-INCREDIBLE-COWORKING-STATISTICS-THAT-WILL-MAKE-YOU-LEAVE-YOUR-CUBICLE_B_6466440.HTML
HTTP://COWORKINGMAP.ORG/STATS/
HTTP://BLOG.SQWIGGLE.COM/COWORKING-TRENDS-STATISTICS/
HTTPS://HBR.ORG/2015/05/WHY-PEOPLE-THRIVE-IN-COWORKING-SPACES
HTTP://AZTECHBEAT.COM/2015/09/COFFEE-COLLABORATION-AND-CO-WORKING-AZ-CO-WORKING-GUIDE/
HTTP://BLOG.COWORKING.COM/BLOG/2014/01/26/7-STEPS-TO-SELECTING-A-COWORKING-SPACE/
HTTP://MASHABLE.COM/2013/06/11/STARTUP-ACCELERATOR-GROWTH