blurred lines: incubators, accelerators and coworking

BLURRED LINES: INCUBATORS, ACCELERATORS & COWORKING

NATE CURRAN ENTREPRENEUR-IN-RESIDENCE

@NATECURRANAZ

GREG BULLOCK MARKETING SPECIALIST

@AZBULLOCK

T H E C E N T E R F O R 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 T O S U P P O R T I N N O VAT I V E ENTREPRENEURS WHO ARE S C A L I N G C O M PA N I E S T H AT CREATE QUALITY JOBS FOR THE GREATER PHOENIX REGION.

STRATEGIC GROWTH PLANNING AND INDUSTRY-SPECIFIC MENTOR ASSISTANCE

WET LAB & OFFICE SPACE FURNISHED, AFFORDABLE AND FLEXIBLE

DISCOUNTED PROTOTYPING ONSITE 3D PRINTING AND DESIGN SERVICES

COMPETITIVE INTELLIGENCE SOPHISTICATED MARKET & COMPETITOR RESEARCH

BLURRED LINES: INCUBATORS, ACCELERATORS & COWORKING PHX STARTUP WEEK | FEBRUARY 26, 2016

WWW.CEIGATEWAY.COM


INNOVATION THROUGH 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


OUTDATED AND/OR INCONCLUSIVE RESULTS ABOUT THE OVERALL SUCCESS RATE OF INCUBATOR CLIENTS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)


ADVANCEMENT THROUGH 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, FINITE TERM BASED AROUND COHORTS

TYPICALLY OFFER DIRECT FUNDING FOR COMPANY EQUITY

DEMO DAY OFTEN SIGNALS COMPLETION OF THE PROGRAM

WHAT MAKES A BUSINESS

ACCELERATOR?

ACCLERATORS


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?


JENNY POON & ODEEN DOMINGO | CO+HOOTS (PHOTO VIA THE SOCIAL BOOTH / CO+HOOTS)

CONNECTION THROUGH 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


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

WHERE IT ALL GETS COMPLICATED


CORPORATIONS, ACADEMIC

INSTITUTIONS

“SUPER” INCUBATORS

EXECUTIVE MENTOR PROGRAMS

STARTUP COMPETITIONS

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INCONSISTENT MESSAGE

RESOURCE CONFUSION

WE DO KNOW ONE THING FOR SURE


EVERY STARTUP EXPERIENCE IS

UNIQUE FAR 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.


YOU SHOULD CONSIDER THEY MIGHT EVALUATE COWORKING CRITERIA

þ  RESOURCE ALIGNMENT

þ  RECORD OF SUCCESS

þ  COST AND/OR EQUITY

þ  POST GRADUATION OR COMPLETION

þ  ONGOING REQUIREMENTS

þ  CULTURE FIT

þ  COACHABILITY

þ  SCALABLE IDEA OR BUSINESS MODEL

þ  ECONOMIC IMPACT

þ  TEAM

þ  LOCATION &“CURB” APPEAL

þ  COST

þ  AMENITIES

þ  HOURS OF OPERATION

þ  CAPABILITIES FOR GROWTH

þ  CULTURE & NETWORKING

SELECTION PROCESS

BECOME FAMILIAR WITH ALL THE

RESOURCES AND AMENITIES


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


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


STARTUP TIMELINE


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.


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.


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.


ARIZONA INCUBATOR RESOURCES DOWNLOAD THE PRESENTATION

MORE RESOURCES

INFO.CEIGATEWAY.COM/PHXSW2016


REACH OUT WITH YOUR QUESTIONS

[email protected] [email protected]

WWW.CEIGATEWAY.COM

@CEIGATEWAY

275 N. GATEWAY DRIVE PHOENIX, ARIZONA 85034

602.286.8950


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

blurred lines: incubators, accelerators and coworking

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