— 1 — © 2015 ViTAL Economy, Inc. SoVermont Business Accelerator Feasibility Study October 2015 Frank Knott – [email protected] Jim Haguewood – [email protected].

— 1 —© 2015 ViTAL Economy, Inc.

SoVermont Business Accelerator Feasibility Study

October 2015

Frank Knott – [email protected] Haguewood – [email protected]

— 2 —© 2015 ViTAL Economy, Inc.

Meeting Agenda

I. Review of SoVermont Business Accelerator objectives and relationship to CEDS goals

II. Best practice definitions and characteristics

III. Review current regional research and mapping

IV. Questions

V. Actions and Assignments

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EDA Grant Objectives1. Launch a new Southern Vermont Business Innovation Accelerator designed to speed creation of new jobs

and products for export.

2. Provide the comprehensive entrepreneurial infrastructure and financial resources needed to fulfill the CEDS goals and objectives. 

3. Pilot programs to support Green Building startups and product development

4. Develop business infrastructure, connecting local resources and filling gaps through a region-wide virtual program providing ‘wraparound’ support across all sectors to coordinate services, expertise, and mentoring tailored to our unique business environment. 

5.  Play a major role in filling a critical gap holding back businesses: the lack of investors and capital.

Timeline & Deliverables: 

• In the first 12 months,– Map existing business infrastructure resources and develop relationships between key entrepreneurial support

systems at regional educational institutions: 

– Identify structural weaknesses in local business support systems, mapping the gaps

– Project Manager and Outreach/Communications coordinator for the Accelerator will both be hired no later than January 2016. 

• By May 2016, – the Accelerator will have articulated a program and be ready to initiate a first cohort, connecting entrepreneurs with

expertise and support that will make their projects investor-ready. 

• Next phase – Strengthening connections between capital and innovation in order to attract investment capital for these qualified

entrepreneurs from high-priority sectors (based on the CEDS) as they emerge from the Accelerator program.

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Feasibility Study Premise

Research and performance analysis concludes that there is no single individual model, with all entrepreneurship innovation ecosystem elements, that exists for a single location.

Premise Objective

1. Build off of and integrate existing innovation, entrepreneurship and business support resources.

2. Focus on the “right” size and design of a business accelerator for the region.

3. Gain an increased climate of trust among innovators, entrepreneurs and resource providers in the region.

Approach

1. National best practices for innovation and business accelerators in rural communities

2. Resource assessment

3. Needs assessment

4. Feasibility and funding

5. Performance metrics

6. Program design, culture and delivery model

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Qualitative: CEDS 2018 Objectives

SoVermont Business

AcceleratorAct regionally

Increase the size and quality of the

workforce

Create an entrepreneurial environment and culture to enhance existing business

and grow new business

Improve wage parity with the surrounding

laborshed

Retain and attract younger talent through engagement linkages, lifestyle amenities,

and meaningful career opportunities

Develop immediate, VY-specific workforce and site impact mitigation strategies prior to its 2014 closure

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Quantitative: Regional Goals by 2018

Goal #1: Reverse Population Decline• Increase population to 46,266• Increase proportion of 25-44 year olds to 25% of population• Double the percentage of foreign born resident to 7% of population

Goal #2: Increase the Number of Well Paying Jobs• 1,054 jobs @ $46,340• 702 jobs @ $42,130• Increase wages of 4,650 by $5,000 per year• Increase median income for associates/some college to $32,328• Increase median income for bachelors degrees to $40,597

Goal #3: Improving Workforce Quality• Increase associate degrees/some college and technical certificates

among 18-24 year olds

Goal #4: Raising Household Income Relative to Surrounding Areas• $174M in new wages• $470M in new GDP• Improve the ration of new earned income to total income to .65

Accelerator Impact Goals

# Jobs Created

# Startups/Product Lines

Return on Investment

$ Attraction

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Components of a Regional Entrepreneurship Ecosystem

Business Support Services

Business Incubation

Business Accelerator

Co-Working & Makers Space

Entrepreneurship and Innovation Networks

Education & Training

Technology Transfer

Business Capital

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Best Practice Definitions

Business incubators are often sponsored/supported by municipal entities, public institutions and are part of an economic development program.

Focus – facilities, early stage companies and shared support services

Accelerators focus on companies with high growth potential that offer products or services with a national or global market. Companies are frequently funded by venture capital type organizations with high levels of involvement and expected returns on investment.

Focus – existing companies and products, speed to growth and mentorship

Co-working/maker spaces offers access to collaborative work space and equipment for startups or existing businesses. Usually highly flexible and loosely organized with a variety to membership styles.

Focus – community space building a “home” for inventors and ideas and activities

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Characteristics of Business Accelerators

Characteristic Performance Metric

Web-based high competitive application process, compressed selection process, limited number of participants at anytime

(<10% accepted)

Pre-seed investment in exchange for an equity position

($5,000-$20,000 for 6%-8%)

Focus on small management teams not individuals

(3-5 management team)

Time limited support consisting of programmed events and intensive mentoring

(10-13 weeks)

Companies work and learn together in cohorts or classes

(1 or 2 cohorts per year)

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Accelerator Strategic Design

Investors Mentors

Startups

Networks

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Current Resource List – LOCAL & StateInvestors Space/Physical Assets Networks Service Providers

WCEDP BDCC Six College Collaborative SBDC

Brattleboro Savings & Loan The Brooks House? College Graduates SCORE

Estey Organ Campus? Brattleboro Area Techies Windham Regional Commission

Hermit Thrush Brewery Brattleboro Area Marketing Professionals

Marlboro College, Center for New Leadership

Duo Restaurant Valley Venture Mentors Vermont Technical College Leadership Development Training Series

Lighting Jar Co-working Antioch University, Sustainable Business/MBA

Hannah Grimes Center for Entrepreneurship

Windham Grows, Strolling of the Heifers

Peak Pitch/Fresh Track Capital

HackVT VCET

LaunchVT Vermont Venture Foundry

• Who is missing from the list?• Where are the entrepreneurs and innovators concentrated? Hubs?• Who is the most trusted? Who is the regional champion?• Who are the priorities in each category for contact and interviews?

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Additional Questions

1. What does success look like for the SoVermont Business Accelerator?

2. What services should the Accelerator provide to the region?

3. Should the Accelerator be a fixed or coordinated virtual resource?

4. Who needs to be at the table to champion recommendations and implementation of the designed SoVT Business Accelerator?

5. How will designed Accelerator resource be initially financed, if implementation is to begin by June 2016?

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Next Steps and Assignments