UP Global - Corporate Accelerators and Incubators

DraftAccelerators, Incubators and Coworking

An Overview

June 2014

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Draft…is an office environment shared by people or

small teams working on their own projects.

You’ll often find freelancers and contractors at Coworking spaces for

shared amenities (coffee, WiFi, conference rooms), to be part of a

community with similar values and style, or simply to avoid isolation.

Coworking spaces sometimes feature social and learning programs,

but this isn’t required or expected.

CoWorking Space

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Draft… are places designed to help early-stage

companies achieve idea validation over a

longer period of time.

Incubators help build execution teams around an internally-sourced

idea in exchange for equity. Some Incubators are similar to cowering

spaces, with support staff and equipment made available to new

businesses at low rent.

Incubator

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Draft…a program that takes small amounts of equity

in externally developed ideas in return for

small amounts of capital and mentorship.

Accelerator programs bring in batches (cohorts or classes) of

companies for an intensive period of product development and

professional mentoring over a limited timeframe (usually 90-120 days).

Accelerator

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DraftDo you want Cultural change, Community

outreach, or Product Development? All three?

Clear goals and outcomes will help you choose the right program

structure, the right partners, and the right metrics/indicators.

What is your goal?

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DraftVideo Examples

01 Sprint Mobile Health Based in Kansas City, Missouri and operated in

partnership with Techstars, this accelerator graduated

their first class in June 2014.

https://www.youtube.com/watch?v=H5iJCsudrDg

!02 Samsung Accelerator Based in New York City and Palo Alto, CA, this

accelerator focuses on consumer electronics and is

operated entirely by Samsung.

https://www.youtube.com/watch?v=fC9sXSQyxUE

!03 Microsoft Garage Based in Seattle, WA, Garage is an incubator for the

development of internal ideas by Microsoft employees

https://www.youtube.com/watch?v=-zIZ7_QAXN0

04 GE+Quirky Quirky crowdsources ideas and brings them to market

with an IP and revenue share to inventors They have

partnered with GE to develop smart device concepts

in a unique take on a corporate incubator.

https://www.youtube.com/watch?v=o3EFecAEJe0

!05 Vegas Downtown Project In effect, an incubator for Las Vegas downtown

focused on building a community with startup and

real estate investments, on a budget of $350M.

https://www.youtube.com/watch?v=1Q_OoRydObE

!

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DraftExploration is the engine that drives innovation.

Innovation drives economic growth. So let's all go

exploring. -Edith Widder

We recently met with our other partners to discuss what makes a great Accelerator

program. Together, we made several key observations:

• The best Accelerators build communities of alumni, mentors, community

organizers, and partner networks.

• They bring business units together and work across silos.

• They involve management as mentors to internal teams and external companies.

• They have clear succession planning, to help companies transition to business

units.

• They are measurable, and focus on key performance indicators.

Building an Accelerator Program?

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DraftThe Players

!!

Funding Structure

Company Goals Mentoring

Access to Partners

!!

Execution Ideas & Innovation New Capabilities Cross-Training

Alumni network

!!

Mentoring Ideas

Possibly, Leads Entrepreneurs

Education Role models

Management (Executives)

Intrapreneurs Community (Organizers and Entrepreneurs) !

!Program Structure

(i.e. Techstars) Mentoring Customers

Connections

Partners

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DraftAccelerator Inputs

Whys

•Capability Building

•Cultural Discovery

•Vetting Internal Ideas

•External Validation

•Develop External / Internal Partnerships

Hows

•Empower Intrapreneurs with permission & time

•Internal Recruitment (Roadshow)

•Mentor training and matching programs

•Facilitate team formation & skills development

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Draft"If you want to go fast, go alone. If you want to

go far, go together." #AfricanProverb

The accelerator is a chance for your company to learn from the startup

community, as well as a chance to grow companies. Create a clear

plan for how external entrepreneurs can get involved. Consider

attending/sponsoring events, inviting the community into shared

workspaces, and opening mentorship and resources to the community.

Have a playbook for community involvement. Most of all, remember to

lead with your actions, not your brand.

Community and Corporation, Together

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DraftPost-Accelerator Support Systems

Company

•Transition plan to Business Unit or outside of company, including personnel transfer.

•Access to Sales, Distribution, Customer Networks, and Engineering Resources

•Access to additional capital (internal and external)

•Post-accelerator KPI tracking and follow-up

People

•“Halfway house” or development sabbatical for entrepreneurs between projects.

•Robust Alumni Network, with regular communications and networking opportunities.

•Coach and Talent management program.

•Cross-training and community engagement opportunities.

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DraftPoll: What makes a good Accelerator?

Structure •Builds real businesses, rather than

furthering niche projects.

•Operates within a Vertical interest as opposed to a specific technology or niche.

•Emphasizes idea validation with a data-driven approach.

•Has a holistic vision for community engagement. May include multi-purpose space.

•Bring Business Units to the table.

People

•Provides exclusive access to seasoned mentors and decision makers. Also includes peer/cohort mentoring.

•Builds a strong Alumni network that gives back to current cohort.

•Has an infectious culture that attracts talent.

•Ideally, started and operated by entrepreneurs.

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DraftPoll: What makes a bad Accelerator?

Structure •Extracts value from companies,

instead of creating value for them.

•Is an Accelerator in name only, without programming or scalability to back it up.

•Provides companies with In-kind investments (equity for services)

•Is a Cultural mismatch with the parent org or business units. Lacks a management sponsor.

People

•Is not run by an entrepreneurial team, such as a marketing or strategy organization.

•Inexperienced or otherwise low-quality mentors.

•Created by former business people who are looking to make angel investments and be close to deal flow (doing it for profit).

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Draft“Right-size your investment in innovation and

entrepreneurship.” - TA McCann

Accelerators can create company value by creating stakes in new

companies as well as new business units. The following framework will

help you measure the important factors when constructing your

innovation program, including an Accelerator. Ideas, validation,

people development, and community engagement should all be

measured. Each stage requires attention, evaluation, assistance, and

their own metrics.

Measuring Accelerator Performance

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Draft

Measurement Framework

DraftThanks!